30 April 2018
The Hon Daniel Andrews MP, Premier
The Hon Jaala Pulford MLC, Minister for Regional Development The Hon John Eren MP, Minister for Tourism and Major Events
Dear Premier and Ministers
An open letter to the Victorian Government: proposed Cowes Stony Point car ferry
Phillip Island Conservation Society (PICS) urges the Victorian Government to reject Bass Coast Shire Council’s request for funds to investigate the Cowes jetty as an alternative site for a Cowes Stony Point car ferry terminal. Provision of these funds would carry forward the current fundamentally flawed car ferry business case.
We believe further reliance on, or investment in, the business case is “throwing good money after bad”. As outlined in our submission of 2 April 2018 regarding the draft business case, the proposed car ferry is a highly risky capital outlay for very marginal change to the base case.
The proposed car ferry, with its flawed business case, amounts to a risky use of public funds—funds that could be better spent on alternatives that embody the visitor economy strategy vision of sustainable growth and enhance one of Victoria’s most valuable tourism assets, Phillip Island’s natural environment. We urge the Victorian Government to scrutinise the car ferry proposal rigorously and objectively, and ensure that it adopts an evidence-based approach.
The community consultation report appended to the business case recommended several “business case response” actions, including adding a statement that ministerial intervention is “not desirable”, improvements to the economic analysis to demonstrate viability, and further evidence that a car ferry would bring purported tourism benefits by smoothing seasonal visitation patterns. These actions were not addressed in the final business case.
Serious concerns raised by PICS and others in the community also were not addressed in the final business case. These include the unlikely viability of the car ferry, given very poor time-savings for the fare and unrealistic demand modelling; overstatement of economic and social benefits; overstatement of the benefit cost ratio and operating outcomes; understatement of social costs; and omission of key environmental risks.
Among the international case studies presented in the business case, the proposed Cowes Stony Point car ferry is uniquely uncompetitive—the only service that will, on average, cost users both time and money—so it is likely to be unviable. This problem remains whether the car ferry terminal is located at the originally proposed Mussel Rocks site or at the nearby Cowes jetty.
The car ferry proposal has generated significant anxiety in the Bass Coast Shire community, with 54 percent opposed to the concept and only 37 percent in favour in community consultation following the release of the draft business case.
PICS participated in the development and implementation of the Phillip Island and San Remo Visitor Economy Strategy 2035 and applauds its long-term vision of sustainable growth. The visitor economy strategy emphasises that the economy is the environment of Phillip Island and that its natural assets must be protected. PICS commends the Victorian Government and Bass Coast Shire Council for their advocacy for tourism, which is a critical part of the local and state economies. However, we caution against focussing too narrowly on advancing the car ferry project prior to other key actions in the visitor economy strategy. The proposed car ferry is not a panacea that will increase overnight visitation and economic yield or smooth out seasonal peaks and troughs. This requires other approaches that increase visitor amenity and reasons to stay.
A car ferry terminal at the Cowes jetty will reduce visitor amenity by reintroducing cars to the north- facing Cowes foreshore, just as Bass Coast Shire Council has sought to remove them with the jetty triangle redevelopment. The $2.5M jetty triangle project currently underway is part of a “game changer project” in the visitor economy strategy to create event infrastructure that will generate year-round visitation from domestic and international markets. It aims to make the triangle the centrepiece of the foreshore precinct: “the new ‘village green’ – a versatile grassed common area flowing down from a terraced stage surrounding the historic cenotaph. Replacing the former jetty triangle car park, the village green will be the primary event space in Cowes, and will better suit the needs for burgeoning markets and community gatherings.”
The request by Council for state funding to investigate the Cowes jetty as an alternative car ferry terminal site also needs to be considered in the context of Bass Coast Shire Council’s existing bid for state funds to replace the failing Cowes jetty, which is no longer safe or able to accommodate cruise ships.
On 18 April 2018, Bass Coast Shire Council resolved to provide in-principle support for a car ferry, but to defer consideration of the business case pending investigation of the Cowes jetty as an alternative site for the ferry terminal. We believe this in-principle support for a car ferry is premature until the business case flaws are credibly addressed and the recommendation for ministerial intervention has been removed.
If, despite PICS opposition, the investigation of the Cowes jetty as an alternative site does proceed, PICS believes that the design for the Cowes jetty replacement and its integration with the redeveloped jetty triangle must be presented to the community at the same time as any proposed car ferry terminal design to allow genuine comparison of the options. It is important that the community engagement process is well designed. PICS would like to see key community groups involved in developing this engagement process, including the framing of future survey questions for the community.
In the event that the project proceeds, PICS agrees with Bass Coast Shire Council’s resolution that the Victorian Government must undertake a full environmental effects assessment on the final preferred location for a car ferry terminal.
We look forward to your response. The issues raised in this letter are further explained in our submission regarding the business case. Should you wish to discuss the matter, please contact our Vice President Jeff Nottle on 0419 158 232 or call me on 0439 559 172.
Yours sincerely
Anne Davie President
PHILLIP ISLAND CONSERVATION SOCIETY INC PO BOX 548 COWES 3922 PRESIDENT: Anne Davie 03 5956 8216 SECRETARY: Christine Grayden 03 5956 8501 E: cdgrayden@gmail.com
Website: www.picsvictoria.org.au Facebook: www.facebook.com/picsvictoria