Economists at Large has undertaken a rapid review of the forth round of economic assessment of the proposed Bastion Point boat ramp and breakwater development in Mallacoota – far eastern Victoria. Ecolarge have been involved in the Bastion Point boat ramp and breakwater project for many years, having appeared as an expert witnesses for the Save Bastion Point community group in 2008 during the Environmental Effects Statement (EES) inquiry. In 2008, the independent EES panel found that the economic case for the proposed development was weak, in line with our findings (download our original review below).
Despite subsequent reports and findings showing that the project would be of little or no value to the local economy, the East Gippsland Council has commissioned yet another economic assessment, not willing to allow this project to be dead and buried.
Given the costs of the project and the amount of local opposition it faces, we believe there must be a convincing and thorough economic case for the project to be approved. Our review of this latest report has found the economic case to be neither convincing nor thorough.
This latest report adds no new economic analysis or data that improves the business case for the development, and yet it has managed to inflate the benefits of the ramp substantially. The results of this report run directly contrary to the findings of the EES Panel Inquiry Report that concluded that “the economic case for the proposals based on increased recreational ocean boating is flawed” (page 135).
Our assessment of this latest report has turned up errors in the methodology used to assess a public infrastructure project which results in the economic case for the project being overstated. We conclude once again that the economic case for the development is grossly insufficient and is in-fact likely to be economically destructive to local finances with dubious tourism benefits to the local economy.
Based on our review, we would recommend that this project not be approved based on the economic case for the ramp outlined in the Buchan Report.
Ecolarge Bastion Point boat ramp and breakwater review – Buchan (2010)
Ecolarge Bastion Point boat ramp and breakwater review – Pryor (2008)
