Posted 16/7/06

'Favour' for Fox sparks $300m row

Cameron Houston, City Reporter, The Age, July 14, 2006

PLANNING Minister Rob Hulls has been accused of doing favours for a powerful mate by intervening in the rezoning of farming land adjoining the Phillip Island race track, which will pave the way for businessman Lindsay Fox's $300 million tourism development.

The controversial decision is at odds with the Government's Coastal Spaces strategy launched in April with the aim of curbing development along Victoria's 2000-kilometre coastline.

Mr Hulls has also overturned a recent decision by the Bass Coast Shire Council to rezone just 90 hectares of the 370 hectare site, despite an agreement to give local councils a greater say in coastal planning.

Cr Kelly Simrajh accused the Planning Minister of "looking after his powerful mates" and said Mr Hulls had pressured him to adopt a "positive view" of the project.  He's gone against virtually every planning guideline in the state, including several of his own policies, to make sure this project gets up," Cr Simrajh said.

Last year, Mr Hulls wrote to coastal councils directing them to reject developments outside existing town boundaries.

But in a directive to the Bass Coast Shire Council, Mr Hulls said the future of the Phillip Island race circuit was a matter of state significance.

All existing rural zones along the Bass Coast will be replaced by the new farming zone. But the Linfox Property Group site was exempted and zoned rural activity, which will significantly increase the chances of residential development.

The council will meet next month to consider a Linfox submission for 506 holiday suites, a conference centre and an 18-hole golf course designed by Greg Norman.

Mr Hulls' description of the race circuit as an area of state significance has increased the likelihood that the matter will be "called in" and assessed by an independent panel, if the council refuses the application.

A spokeswoman for acting Planning Minister John Lenders said the Phillip Island circuit made a substantial contribution to the state's economy and the rural activity zone had been applied so that council could continue to evaluate the proposal.  "I also want to make clear that the rezoning does not give the green light to this proposal," the spokeswoman said.

But Cr Gareth Barlow said the Planning Minister "appeared to have done a favour for a mate" at the expense of other developers.  "There seems to be an uneven playing field for developers and it's more about who you know and how much influence you have," he said.

More than 20 development proposals would be blocked by the new farming zone, he said, including an $800 million project in Inverloch that had the backing of the community and the planning scheme.

Linfox general manager Andrew Nicholls conceded the rezoning to rural activity would help the company's bid to develop the property.

Phillip Island Conservation Society spokeswoman Anne Davie said the proposal was a "fait accompli" that would devastate Phillip Island's southern coastline.