The Communications Minister, Stephen Conroy, has hit back at criticism from the retailer Gerry Harvey over claims the government subsidy for pensioner set-top boxes is too costly.

After Mr Harvey claimed he could provide and install set-top boxes for less than half the average cost of the government's scheme, Senator Conroy yesterday challenged Mr Harvey to put his money where his mouth is and bid for the work.

Under the program, the government is offering to pay for certain households, including pensioners, to be connected to digital television at an average cost of $350 a household.

''If Gerry Harvey can meet the tender, the service standards, the occupational health and the safety standards, then we would welcome Harvey Norman putting in a tender,'' Senator Conroy said on 2GB radio.

''There's a tender for NSW regional parts, and regional NSW open right now today. If he can do it for less than $350, he'll get the gig.''

Retailers including Mr Harvey have claimed they could provide digital-ready TVs for less than $350, but Senator Conroy dismissed this option as well.

''We're not going to tell people what size TV they [should] have,'' Senator Conroy said. ''We offer them a box so they don't have to buy a new TV.''

As well as installing and providing the set-top boxes, the government's scheme will adjust antennas, and provide a one-year warranty.

The program, which received $308 million in the budget, has come under fire from the opposition and electricians, amid claims it is too expensive and could encourage reckless companies to bid for the installation work.

The Opposition Leader, Tony Abbot, mocked the scheme last night. However the Coalition has not opposed the program outright, saying it understands the cost of living pressures on people who want digital TV, but it wants proof the money is being well spent.

Media Access Australia, which advocates access to media for people with disabilities, backed the scheme yesterday. It said it had encouraged manufacturers

Digital TV set top boxes | Harvey Norman told to tender