PORTANDINDOSTruALDEVELOPMENT IN THE HASTINGS AREA

Discussion Paper on the need for a Review of Statement of Planning Policy No. 1 and of the Hastings Port Plan (Shire of Hastings Planning Scheme)

JVUNISTRY FOR PlANNING AND ENVIRONMENT JUNE 1985

711. 5520 9945 2 HAS copy 2 MEIOO DPUG LIBRARY

Minister for 111111111111111111 Planning and 16064 Environment

500 Collins Street Victoria 3000 PO Box 2240T Melbourne 3001

Telephone (03) 617 0211

PORT AND INDUSTRIAL DEVELOPMENT

IN THE HASTINGS AREA

Reference 82/2769 The Victorian Government views the development and implementation of its Economic Strategy as a fundamental step towards establishing a more prosperous, equitable and fulfilling life for Victorians. A key element of this is to increase employment opportunities in order to redress the social and economic problems arising from unemployment.

Within the framework of the Economic Strategy a range of State and regional industry policies have been adopted including policies to target regional industry assistance to revitalise the economic bases of areas with high unemployment rates and dependent on declining or slow growing industries. The Hastings area of Westernport is one such area.

A number of bodies have argued that to achieve the desired economic growth in the Hastings area, Statement of Planning Policy No. 1 - must be reviewed to make it less restrictive and the Hastings Port Plan amended to allow more general manufacturing rather than port related industries to estpblish.

I requested advice on this matter from the Ministry and a report has been produced which concludes that formal reviews of the Statement of Planning Policy and of the Hastings Port Plan are not necessary at this time but rather that the desired flexibility can be achieved by other means.

To assist me to decide whether or not to initiate formal reviews of the Policy and the Plan, I have arranged for the officers' report to be published as a catalyst for community discussion and response on whether or not a review is necessary and on what other measures might be taken to encourage and assist appropriate industries to establish in the Westernport area.

I am, therefore,inviting written comments on the issues raised and the lusions drawn in the attached paper. These should reach me by the iJJiZJ~CiSion can be made as soon as possible.

EVAN WALKER . MINISTER FOR PLANNING AND ENVIRONMENT ------~ 5 June 1985 711.5520 4497207 ,:; 9945 2 HAS. Port and industrial I . copy 2 ' .. development in the . ,Hastings area' ~ discussion ·paper. ·.r

5141(F4) P 0 R. T A R D I R D U S T R I A L D EVE LOP K E B T

I R T R E R A S T I R G S A R. E A

DISCUSSION PAPER ON THE NEED FOR A REVIEW OF STATEMENT OF PLANNING POLICY NO. 1 AND OF THE HASTINGS PORT PLAN (SHIRE OF HASTINGS PLANNING SCHEME)

Ministry for Planning and Environment . June 1985 . PORT ARD INDUST&IAL DEYELOPKENT IS THE HASTINGS AIEA

Discussion paper on the need for a review of Statement of Planning Policy No. 1 and of the Hastings Port Plan (Shire of Hastings Planning Scheme)

1. INT&ODUCTION

Statement of Planning Policy No. 1 (Western Port) was prepared in 1970, and reviewed and amended in 1976. Amongst other things, the area of the Policy was reduced to apply only to the mainland in the vicinity of Hastings. .

Recently, requests have come from a number of bodies for·a further revlew of. the Policy to make it less restrictive, to enable more general manufacturing rather than port related industries to establish.

The Develop Victoria Council has written to the Premier, the Minister for Industry, Technology and Resources and the Minister for Planning and Environment caliing for Statement of Planning Policy No. 1 to be amended to allow general industry into the area and for Western Port to be promoted and developed· as a major port.

The Development Committee has called for a review of Statement of. Planning Policy No. 1 and suggested that an examination be commenced to determine the relevance of the Policy to circumstances existing throughout society today. The Council of the Shire of Hastings agreed with the thrust of the submissions made to it and requested a deputation to the Premier to put forward the views expressed by the Mornington Peninsula Development Committee. The deputation eventuated as a deputation to the Minister for Planning and Environment. ..

The Minister has acknowledged that development of Westen Port as envisaged in the late 1960s and early 1970s has not occurred, that economic circumstances have changed in recent years, that unemployment is an issue of major concern, particularly on the Mornington Peninsula, and that a more flexible attitude to the types of industrial development which should be allowed in the Hastings area should l?e taken.

On 27 December 1984 the Minister wrote to the Shire Secretary of the Shire· of Hastings in the folloWing terms:

"You will appreciate that it is my view that although a .formal review of Statement of Planning Policy No. 1 may not be necessary" changing circumstances warrant a more flexible approach being taken to the types of industrial development which should be allowed. You will also be - 2 -

aware that I have directed that the discussion paper being prepared by the Ministry for Planning and Environment should be completed •••••••••••• so that a more thorough discussion of the issues and of the need for a review can occur."

Thus the purpose of this discussion paper is clear. It is intended to generate community discussion and response on the need for a review of Statement of Planning Policy No. 1 and/or of the Hastings Port Plan. The paper concludes that a formal review is not desirable and not necessary to achieve the aim of increasing development and hence employment opportunities in the Hastings area.

However, it is important to'emphasise that, at this stage, this is· the view of the officers in the Ministry for Planning and Environment who prepared the paper. It must not be seen as the view of the Ministry, of the Minister or of the Government. A decision on whether a formal review will be undertaken will be made in the light of consideration of .the issues. including those raised in response to this paper.

2. A1lCUlIlUI·TS . pur FOB.WAllD FOB. A R.KYIEW OF STATEKEIIT OF PLAIIRINC POLICY 110. 1

The Develop Victoria Council, the Mornington Peninsula Development Committee and the Shire of Hastings Council have put forward arguments in support of a review. In summary they are:

." The Statement of Planning Policy should be reviewed to bring it . into line with current economic and demographic conditions particularly with a view to Western Port playing a larger part in the overall infrastructure of the Victorian economy.

• Additional emphasis should be given to the development potential of Western Port and less to conservation and environm~ntal issues.

• .The Policy over-emphasises the Port related industry criteria for development. Such capital intensiVe industrial developments may not happen in the foreseeable future. A projected time frame for development is not stated. . . . • The expectations of the late 1960s and early 1970s that major industrial undertakings would be attracted to Western Port have not been realised. On the contrary, a number have closed or are about to close.

• The Port of Melbourne Authority should be made responsible for both the Port of Melbourne and Western Port. This would result in a change of policy such tbat Western Port would be opened up for general cargo handling and the infusion of general industry would help to solve unemployment problems on the Mornington Peninsula. r------

- 3 -

• The State Development Committee Report 1981 suggested that port development was constrained by Statement of Planning Policy No. 1 and that this was reflected in the statutory plan for Hastings Port Industrial Area.

• Land for general farming should be appropriately zoned to retain its potential for either port related industry or general industrial development.

• The language of the Policy nee,ds to be amended to allow for a more flexible approach. It should be more simply stated.

• The western boundary of the Policy area and hence the Hastings Port Industrial Plan area needs to be more clearly defined.

• It is appropriate for the Policy to be subjected to regular critical analysis and review - at least every five years.

3. STATEMENT OF PLABBING POLICY 80. 1 : VESTEKB PORT (AS VA1I.IED) 1976 The Statement of Planning Policy is a conservation policy in the S broadest sense of the term. It is directed primarily to the planning ~ necessary for the management of the land resources in a part of the Western Port catchment area for deep water port and industrial development in such a way that the economic value of the deep water port is realised without diminishing the value of other fine natural resources in the region. The policy clauses of the Statement are set out in Appen.dix 1.

The goals of the Policy which are set out in the introductory pages to the Policy (p.24) are:

"1. The protection, utilisa,tion and management of the deep water of Western Port for a specified kind of port and industrial development.

2. The limitation of the area for potentlal industrial and port development to the main land between Hann's Inlet and Watson's Inlet generally to the' 'east of the Tyabb Fault and the Clyde Monocline.

3. ,The physical separation of development at Western ,Port from other development radiating out from the metropolitan area because of Western Port's specialised nature.

4. The integration of the regional planning of the area with scientific studies of Western Port and its catchment.

5. The regulation of development so that resources in the land catchment and bay which have considerable value for recreation and nature conservation will not be adversely affected. - 4 -

6. The maintenance of a high standard of environmental quality within the area designated for port industrial development thus creating a new and attractive type of industrial area.

7. The provision of an adequate and co-ordinated system of services in keeping with the ecology and functions of the area." .

The combination of outstanding natural resources and economic influences nas already attracted a specialised kind of industrial and port development to the Western Port area. Essentially, this development is centred on large-scale process industries which make large demands on land and capital but have relatively low labour requirements. Rather than the labour component, the most important asset to these industries is access to the deep water to allow for the transfer of bulk commodities requiring deep draught shipping. The steel industry is an exception which requires both significant workforce and access to deep water.

4. PItKSSUUS· FOR. OTHER. FOR.HS OF IHDUSTR.·IAL AIID POR.Y DEVELOPIlEBT

The introductory pages to the Policy di.cussed pressures on the Western Port area as a result of its attractiveness for and deve1.0pmentby port related industries. Amongst other developments attracted by the basic industries, .are secondary industries such as light manufacturing, transport and communication, and utilities such as suppliers of essential services. There are a number of secondary industries operating on sites in the vicinity of Hastings, Tyabb and Bittern supplying the basicindustdes with· goods and services and there are continuing pressures to subdivide land around Hastings to provide for these smaller-scale operations. . .. .

In respect to these pressures the following points were made:

"It is considered that the pressures for secondary industry development within the policy area should be restricted so as to keep options open· fo~ the. ... . ·specialised industries which are economically dependent on a location close to the deep water and are prepared to pay the environmental protection costs involved. Secondary industries should be encouraged to locate further way in the vicinity of Dandenong, Frankston, and Cranbourne where suitable transportation networks are being developed and the resident labour force is rapidly growing." (p.22)

and

"Moreover the land available in the Policy Area is relatlvely limited.· For this reason the industrial development permitted there must be restricted to those industries which require access to deep draught shipping and such support services which it is essential to locate there." (p.23) - 5 -

There has also been pressure for significant developments not attracted by the basic industries. In June 1984, responding to the acknowledged need for a more flexible approach, the Minister recommended approval of an amendment to allow a company manufacturing potting mixes and fertilisers to use and develop a site previously used by one storing, baling and distributing waste metals.

5. DISCOSSIOIi

The primary thrust of Statement of Planning Policy No. 1 is that:

~'2.1 The resources of the area shall be protected to preserve their value for selected port and industrial purposes which depend upon or gain significant economic advantage from the natural deep water channels."

Port Deyelopaent

The Policy precludes development of the Port other than for deep draught shipping needing to use the natural deep water channels.

It can be argued that Western Port would not have developed as a port if it were.not for the existence. of deep water channels which are in close proximity to Melbourne and which the Port of Melbourne cannot offer.

The State Development Committee in its Inquiry into Port Utilization and Development in Victoria concluded that:

"16 The development of general cargo facilities at Western Port would not be justified, unless the Port of Melbourne is unable to adequately cater for the future build-up of trade as a result of physical, environmental or other constraints or unless it could be shown that economic advantages would accrue to shipping and trading interests by using Western Port in preference to the Port of Melbourne."

This conclusion appears to accept only economic or port planning reasons (which may be short-term) for restricting port development , in Western Port. However, the environmental values of Western Port \ are so sensitive and important that it should be acknowledged that it (~•.' was only allowed to develop because of its deep water channels which . do not exist elsewhere within reach of Melbourne and that it would be fl a radical change in policy to allow port development for other than.,' this one reason. Y - 6 -

The Economic Sub-Committee of Cabinet established the Western Port Development Working Group early in 1983 to consider and advise on the future development of Western 'Port. Although the report of that Group has not been made available, it is understood that it does not recommend any change in the thrust of the Policy.

The Ministry for Transport is to prepare a Victorian ports strategy. Any review of the future role of Western Port must form part of this overall study. However, it is vital that the review of Western Port has regard to environmental issues as well as economic and port planning issues. Meanwhile, there is no justification for a review of the Statement of Planning Policy at this time to enable a different type of port development to occur.

Industrial Deyelopaent

The Policy also places restrictions on the type of indus~rial development which can occur in the Hastings Port area. The Policy requires the resources of the area to be protected to preserve their value for industries requiring close pccess to deep draught shipping. To achieve this, large tracts of rural land to the north and south of Hastings have been zoned for Port Related' Uses in the Shire of Hastings Planning Scheme.

In view of demands that the Government should be more flexible in its approach to the types of industries it allows to develop in the ~ Vi Hastings area and that more land should be made available for genera'!. I', manufacturing industries, the key questions become: How much land ~ \1 ,should be zoned for Port Related Uses so that the resources of the area a·re "protected to preserve their value for selected .port and industrial purposes ••••• "? and To what extent should land be made available for general industry either by rezoning Port Related Uses land or elsewhere?

Although it can be argued that, to a degree, it was a matter of judgement how much land should be zoned for Port Related Uses and it has been claimed that an excessively large area has been so zoned, it is important to emphasise that the Port Related industrial land only provides a limited number of sites for the large-scale industries intended to locate there.

Furthermore, the demand for general industrial land in the Hastings area does not appear to be strong and there are large areas of vacant general industrial land in Hastings and in nearby areas such as Dandenong.

It is suggested that rezoning of Port Related industrial land would only be necessary and could only be supported if a really large-scale industry came forward which could not be located elsewhere and which could justify the use of one of the limited number of sites intended for port related industries.

It is considered that a review of the Statement of Planning Policy is not needed for this reason. Providing the integrity of the Port Related Use zone is maintained so that the "resources of the area - 7 -

(are) protected to preserve their value for •••••• industrial purposes which depend upon or gain significant economic advantage from the natural deep water channels", rezoning to allow more general industry is not precluded.

Any general industry wishing to locate within the Port Related Uses zone would have to meet the environmental constraints of the Policy and controls similar to those currently laid down in the planning scheme. Many industries might be precluded because of the nature of their operations or waste products.

Demands for a review of Statement of Planning Policy No.1 have also referred to the imprecise boundary which in the west follows the Tyabb Fault and the Clyde Monocline. Clarifying the boundary of the Policy ~ would not affect the Policy clauses but rather the map which accompanies them, and this could be amended without a review of the Policy. On the other hand it can be argued that the boundary has already been precisely defined by way of the boundary chosen for the Hastings Port Plan.

Thus, overall, it is considered that the Policy remains valid and that it is not desirable or necessary to embark upon the lengthy and complex process of a full and formal review. The aim of those pressing the Minister and the Gove.rnment is to achieve more general industrial development and hence employment in the Hastings area. This can be achieved within the context of the Policy as it stands.

However, it would be appropriate for the Minister to make a statement, in effect amending the introductory pages which explain the Policy, to announce the Government's intention to encourage and assist more general industry to establish in the Hastings area. ..

Review of Bastings Port Plan

The remaining question is: Is there a need for a review of the Shire of Hastings Planning Scheme, in particular (Chapter 2 - Hastings Port Plan) if it is accepted that the Statement of Planning Policy does not preclude general industrial development and if it is desired to encourage and assist more general industry to establish in the Hastings area?

A Planning Scheme is not intended to be a static document, but one which can be amended if changing circumstances justify it. If there { is inadequate suitable subdivided land in the Hastings area, steps can be taken to identify and rezone suitable areas as part of a normal amendment process. So far as large areas for major industries are concerned, it would not be appropriate, in the absence of a specific demonstrated need to rezone Port Related Uses land. The Government could make known its intention to encourage more general industry into the Hastings area and to co-operate with potential developers to identify and rezone suitable sites in Hastings if possible and in the Port Related Uses zone if special circumstances justify it.

The Town Planner of the Shire of Hastings has proposed the concept of a Westernport Special Development Project in the following terms: - 8 -

"Objective

To allow, with State and Local Government agreement, the establishment of selected general industrial projects within the Port Industrial area where it can be shown that:

• The location of the Special Project is not prejudicial to the future development of the area for Port Related Uses.

• The Project wlll gain significant economic advantage through location in the Port Industry area.

• The Project will meet stated economic objectives, including the provision of significant employment opportunities.

• The Project is substantially in the interests of the Local and Wider community and the State of Victoria.

• The Project will not prejudicially over-tax existing or proposed infrastructure."

It is considered that a major or comprehensive review of the Hastings Port Plan (Chapter 2 of the Shire of Hastings Planning Scheme) is not justified. However, there is one aspect of the Scheme which does require immediate attention. Some block owners in the Cemet~ry and Anglers Estates at Long Island have apparently been suffering hardship because they have been prevented from developing and have not been able to sell their blocks. The estates are zoned for Port Related Uses, and they also lie within a Restricted Occupation Area, the objective of which is to provide a low density area surrounding the Long Island Point fractionation plant and crude oil storage area.

SUllllA1ty

1. There is pressure for a review of Statement of Planning Policy No.1 (Western Port) to make it less restrictive and to enable more general manufacturing rather than port related industries .to establish.

2. The primary thrust of the Policy is that:

"The resources of the area shall be protected to preserve their value for selected port and industrial purposes which depend upon or gain significant economic advantage from the natural deep water channels."

3. It can be argued that Western Port would not have developed as a port if it were not for the existence of the deep water channels in close proximity to Melbourne and which the Port of Melbourne cannot offer. - 9 -

4. It can also be argued that, because of the important and sensitive environmental values, that Western Port was only allowed to develop be'cause of the existence of these channels and that it should not be allowed to develop for other types of port purposes which can and should be adequately catered for elsewhere. s. To protect the resources of the area for port and industrial purposes requiring close access to the deep water channels, large tracts of rural land have been zoned for Port Related Uses.

6. To a degree it was a matter of judgement how much should be zoned in this way and it can be argued that development of land, including rezoning areas of Port Related Uses land if necessary, for general industry is not precluded provided the integrity of the Port Related Uses zone is maintained.

7. The Government, can adopt a more flexible approach to the type of industrial development it will allow in the Hastings area without a change in the main thrust of the policy for the area and without a formal review of Statement of Planning Policy No.1.

8. The Minister should make a statement announcing the Government's intention to encourage more general industry to establish in the Hastings area, and to co-operate with and to assist industrial developers wishing to establish in the area.

9. Where possible, general industrial developments should occur on suitable subdivided land already zoned for that purpose in Hastings or , elsewhere. If it can be demonstrated that there is insufficient suitable land, then the Government should co-operate with the Shire of Hastings to identify and rezone more suitable , land.,

10c Port Related Uses land should only be rezoned for general industry if there is a specific demand by a suitable large-scale industry requiring a large area of land which is, not available elsewhere and which can justify the use of one of the limited number of sites intended for port related industries.

11. Immediate attention should be given to resolving any problem issues including the future of the Cemetery and Anglers Estates at Long Island.

12. A major or comprehensive review of the Hastings Port Plan (Chapter 2 of the Shire of Hastings Planning Scheme) is not justified. - 10 -

APPENDIX 1

STATEKKRT OF PLAINIRG POLICY Ro. 1 WESTEa. PORT. - AREA OF SIGRIFICARCE FOR SELECTED PORT ARD INDUSTRIAL USES. (As Varied - October. 1976.)

1. This is a Statement of Planning Policy under Part 1 of the Town and Country Planning Act 1961. It applies to the mainland between Hann's Inlet and Watson's Inlet and to the east of the Tyabb Fault and the Clyde Monocline as generally indicated on the attached map,' which land is referred to in this Statement as the "Policy Area". The Statement is directed primarily to the planning ·necessary for the management of the land resources adjacent to the deep channel in the North Arm of Western Port for selected port and industrial development which conforms with the environmental guidelines for the area adopted by the Government.

2. The planning policy to be applied in the Policy Area is that:-

2.1 The resources of the area shall be protected to preserve their value for selected port and industrial purposes which depend upon or gain signficant economic advantage from the natural deep water channels.

2.2 The protection of other important resources of Western Port and its islands and land catchment and in particular their use for recreation, nature conservation and tourism shall be a major consideration in the planning and management of the area for port and industrial purposes.

2.3 The selected port and industrial development shall be acknowledged as of major economic importance to the State, but this shall take place in such a way that other ancillary developments do not occur in the immediate vicinity.

2.4 Port and Industrial development shall be physically separated from other urban development by the establishment of substantial rural buffers.

2.5 Residential development in the Policy Area shall be strictly limited and shall be confined to selected existing urban areas.

2.6 Planning for the use of land shall take account of planning for adjacent areas and the whole Western Port catchment.

2.7 The use of the resources shall be planned and managed to achieve and maintain a high standard of environmental quali,ty.

2.8 Planning for the use of land shall be integrated with policies for the protection of the environment generally and of the diverse resources of Western Port bay in particular. - 11 -

2.9 Planning for the use of land shall take into account information from scientific studies of the area, the adjacent bay, its islands and catchments.

2.10 Planning for the Policy area shall take into accQunt not only the interests of the Victorian community but also the needs and views of the local community.

3. The main factors requiring and influencing the Statement of Planning Policy are:-

3.1 The importance to the economy of access to world markets and the ·cost advantages of deep draught shipping for this purpose making areas which provide suitable natural harbours of special value to the community.

3.2 The sheltered deep water channels of the western entrance and North Arm in Western Port which are capable of accQmmodating deep draught shipping and which are a scarce resource on the Australian coast.

3.3 The existence of flat land suitable for port purposes and specialised industry adjacent to the deep water channels.

3.4 The location of Western Port in relation to commerce and industry in the metropolitan area and the importance of port facilities to the State and National economies.

3.5 The proximity of Western Port to the energy resources in the Gippsland region and in·Bass·Strait.

3.6 The specialised nature of the port development and industries which would benefit from proximity to deep water and their propensity on the other hand to:-

(a) generate waste materials and effluents which would severely damage the environment unless strictly controlled and managed; ;

(b") attract other industries and development to their immediate vicinity; and

(c) generate demands for land reclamation programmes.

3.7 The potential to develop land in a manner which would reduce its capacity for port and industrial development.

3.8 The importance of establishing high site development standards in industrial areas and of integrating port and industrial development with the natural environment of the \-lestern Port region.

3.9 The need to avoid the unacceptable acceleration of metropolitan expansion to the south-east which could be generated by inadequately controlled port and industrial development in the Policy area. - 12 -

3.10 The outstanding quality and diversity of the natural resources of Western Port and its islands and land catchment for recreation, nature conservation, and tourism having regard particularly to their proximity to Melbourne.

3.11 The dependence of that quality .and diversity and of the recreation value of Western Port bay upon protection of the natural systems that give rise to them.

3.12 The pre~ence of locations in the Policy Area of recognized nature conservation value, especially in and adjacent to foreshores and stream margins.

3.13 The information available from scientific studies of the environment and its relevance for planning in the Policy Area.

3.14 The potential for conflict between the interests of State and local communities and the importance of adequate recognition of both.

4. In implementing this policy, every department, Public Authority, Regional Planning Authority and other Responsible Authority, where appropriate to its function, shall pay special attenti.on to the following:-

4.1 Protective measures to ensure satisfaction of land needs for wharfage and associated purposes •

. 4.2 Adequate provision of land for industry dependent on the deep water port facilities.

4.3 Continuance and review of land use and subdivision controls to retain land holdings in existing sizes pending determination of appropriate future uses.

4.4 Regulation of land use and development and appropriate design and execution of works so as to maintain appropriate areas of significant nature conservation value in and adjacent to foreshores and stream margins.

4.5 Visual integration of industrial, port and residential development with the landscape and seascape.

4.6 Formulation and application of development controls to ensure a low overall intensity of land use for industrial facilities.

4'.7 Preservation and enhancement of the amenity of residential development within selected existing urban areas including the provision of adequate buffers between residential and industrial development.

4.8 Formulation of equitable policies for the provision of buffers. - 13 -

4.9 Provision of drainage, sewerage and other waste disposal facilities, utilities and social services in keeping with the special demands and restraints placed upon the Policy Area and the special significance and susceptibility of Western Port bay.

4.10 The requirement that all development of an industrial, port or urban character shall be connected to or provided with a high grade system for the treatment and disposal of waste materials and effluents.

4.11 Regulation of the use of land together with appropriate waste management procedures to minimize all forms of pollution; in particular, control of pollution of the air and surface and groundwater, including the protection of the adjacent bay in compatibility with other Government Policies.

4.12 Those conclusions and recommendations of and arising from the Westernport Environmental Study that are adopted by the Government.

4.13 Careful evaluation of the environmental implications of all proposed development and consultation with app+opriate authorities on the need for and form of environment assessment studies to be carried out.

4.14 The institution of adequate programmes to foster public participation in the planning of the area and to enable assessment of the needs and views of the local community and to assist in reconciling State and local interests.