The positive assessment of the Port Phillip Bay channel deepening project by Planning Minister Justin Madden is an enormous relief for trade-exposed businesses, says VECCI.
"Today’s positive assessment of the project’s viability represents a significant step forward in the economic history of Victoria", says VECCI CEO Wayne Kayler-Thomson.
"This project has presented us with a choice of isolating ourselves from our trading partners or participating in the 21st century’s global growth story, the Asia-Pacific trading region – today, we have chosen the latter," says Mr Kayler-Thomson.
"Victoria now has a more secure future as a physical goods exporter and Melbourne’s position as the manufacturing, transport and distribution hub of Australia is more clearly assured.
"By and large, VECCI supports the Government’s `belt and braces’ approach to the project, including the appointment of an independent monitor.
"We strongly support the notion of ticking the environmental box, as well as the social and economic boxes in a project of this size, as it underpins environmental values and community confidence in the project.
"Unlike some opponents of the project, we also believe that economic, social and environmental goals are not necessarily mutually antagonistic but can be mutually reinforcing.
"Economically, this project is a `no brainer’ – it will add, by conservative estimate, a net extra $1.9 to $2.2 billion to the national economy over coming decades. Not proceeding would invite a similar process of economic decline whereby Melbourne lost the mantle of being Australia’s financial capital to Sydney in the 1980s.
"VECCI has pushed for channel deepening since the beginning of this decade because Melbourne risks being the `odd man out’ among Australia’s capital city container ports by not deepening to 14 metres. This situation is already disrupting shipping schedules with restricted loadings and cargo diversions adding to costs across the supply chain.
"Shipping Australia, representing shipowners and operators, has already said that if channel deepening did not proceed, a special Melbourne freight charge might apply to imports and exports passing through the Port of Melbourne.
"We note that there are a number of other approval phases to go through and we trust they will be expedited in a timely fashion - it is clearly time to bite the bullet and get on with it", says Mr Kayler-Thomson.
