Minister for Energy and Resources, Lily D’Ambrosio, has come under fire for refusing to review redundant coal overlays in the Latrobe Valley that are preventing critical housing and industrial developments.
The South East Traralgon Precinct (SETP), an area of 187 hectares on the edge of town, has been identified as a residential growth zone where up to 2000 homes will be built.
The southern boundary of the SETP is covered by a coal overlay that prohibits development within two kilometres of the Loy Yang mine – a buffer that was introduced more than 40 years ago to protect local coal resources.
But the Minister for Energy has repeatedly refused to review the coal overlays that would allow the SETP to progress, claiming they are “relevant and contemporary”.
This is despite two independent geotechnical studies, commissioned by Latrobe City Council, finding that land stability is not a constraint to progressing the SETP, nor would any form mine rehabilitation result in ground movement that would prevent urban development.
“These coal overlays are more than 40 years old – they are outdated, obsolete, and stifling the development of 2000 shovel-ready homes,” The Nationals’ Member for Morwell, Martin Cameron, said.
“We are in the midst of a housing crisis, and the government has proven it’s not capable of addressing the problem because our social housing numbers are going backwards.
“It is not good enough that Labor simply refuses to review these coal overlays, and the argument they are still relevant is outrageous and has been debunked by numerous geotechnical studies.”
Mr Cameron argued a precedent had been set in 2018 when Labor removed coal overlays on 18 square kilometres in Morwell South.
“In doing this, Labor admitted the buffers were introduced ‘when it was envisaged the Latrobe Valley would have many more power stations’,” he said.
“The former Planning Minister said removal of the buffers was ‘about modernising planning provisions in the Valley to support economic development’.
“The Minister for Energy must get out of the way and allow private investors to do the work that Labor can’t – build more homes.”



