$100m threat to Government: Writ over port

By John Van Klaveren
STATE Government faces a $100 million writ for attempting to kill off a 30-year-old proposed tourist resort development on the Bellarine Peninsula.
The company behind ill-fated Port Bellarine, Grawin Pty Ltd, lodged a Supreme Court writ as the Government rushed a repeal through parliament this week.
Parliament was told the dispute had been through arbitration but compensation would be unavailable to the developer. The Government must repeal a 1981 act of parliament establishing Port Bellarine to kill off the proposal.
The agreement allowed for the development of 1000 residential lots, a marina and canal system at Point Richards, near Portarlington but work never commenced.
Bellarine MP Lisa Neville warned parliament of “some particular legal issues that may arise as a result of this bill”.
“Anyone having a look at the nature of this bill would see there was always a risk the developer may have wanted to seek further legal action.
“The bill includes a provision that no claims would be made against the state and no compensation would be payable.”
Ms Neville said the Government instead intended to give the company an ex-gratia, or goodwill, payment.
The Government wanted to repeal the agreement and its conferred Crown lease because the development was “now out of step” with policy and community expectations, parliament heard.
“In particular, the environmental impacts of the development would be regarded as unacceptable in today’s setting.”
Planning Minister Mathew Guy’s spokesperson refused to reveal the size of the ex-gratia payment.
The writ is the second from the Geelong region for Mr Guy after L Bisnella Developments sued over his decision to overrule a Lara development.