Victorian Government faces compensation claim over halted Point Nepean resort

The Victorian Government could be hit with a $1 million compensation bill after the breakdown of talks with the developers of a planned spa resort within the Point Nepean National Park on the Mornington Peninsula.

Fulfilling an election commitment to halt the development of a luxury hot springs resort by the Point Leisure Group, agreed by the previous Victorian Government only six weeks before the last Victorian election, the current Government Government has been unable to persuade with Point Leisure Group to voluntarily terminate their 50-year lease.

Labor opposed the project during the Victorian campaign, saying large-scale private development was inappropriate and ignored the views of the local community.

Acting Victorian Environment Minister Gavin Jennings said the State Government was now negotiating with the proponent about the costs it could claim under the terms of the lease.

Acting Minister Jenkins recently suggested that "iIt may cost Victorians up to $1 million to resecure 64 hectares of this magnificent site back to the people of Victoria for the next 50, perhaps 100 years"That's what was at risk with the contract that was signed in the dying days of the Napthine Government."

The deal covered 64 hectares of national park, including all of the historic buildings at the Point Nepean quarantine station.

The developers wanted to build a health retreat, hot springs, spa, boutique hotel and conference centre.

Opposition Leader Matthew Guy said Labor was wasting up to $1 million by dumping what would have been a major tourism investment, stating “Labor are doing their best to scare off projects that would deliver jobs, investment and new opportunities.”

Victorian National Parks Association Director Matt Ruchel said the plan to hand large parts of the National Park to private developers under a 50-year lease was "deeply flawed".

Ruchel stated “the lease agreement would have locked the public out of many areas of Point Nepean and provided an impetus for full-blown private development in other national parks"Any compensation now payable to the developer should be laid at the feet of the former Napthine Government for signing up to such a flawed proposal in the first place."

Victorian Tourism Industry Council (VTIC) Chief Executive Dianne Smith said she was disappointed the Government and the developer could not reach a compromise.

Smith stated “this was a litmus test for other projects, to actually have the Government working in partnership with the private sector, so we're very concerned about ripping the confidence out of the private sector.”

The VTIC stated that it was “disappointed a compromise was not reached” to continue with the project, with Smith adding “the plan centred on the Quarantine Station in the National Park and entailed a sustainable development that was sensitive to the local environment"Its focus was to preserve the integrity of the site’s natural and cultural heritage and to create more access for people to experience this wonderful place.

“The failure to reach a compromise means the state is delayed in realising the benefits of sustainable tourism.

“Public-private partnerships are vital to the growth and prosperity of our sector. Point Nepean is a significant cultural and heritage site and the private sector was positive about working with government on a great project for Victoria.

“(This) has the potential to diminish private sector confidence in investing in Victorian tourism projects.”

To view The Point Leisure Group’s website visit www.pointgroup.com.au

Images: A bushland walkway (top) and spa (below) within the Point Leisure Group's planned spa resort within the Point Nepean National Park.

2nd February 2015 - VICTORIAN GOVERNMENT TO REVIEW POINT NEPEAN NATIONAL PARK DEVELOPMENT

7th November 2014 - VICTORIAN GOVERMENT MOVES AHEAD WITH HOT SPRINGS RESORT DEVELOPMENT IN PORT NEPEAN NATIONAL PARK

12th October 2014 - NEW TOURISM ACTIVITIES IN NATIONAL PARKS THREATENS NATURAL HERITAGE