Access to the spectacular Childers Cove will be permanently closed due to unstable cliffs.
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Parks Victoria said the staircase, which was closed to visitors in July, would not reopen due to safety concerns.
The announcement was made late on Tuesday after geotechnical investigations revealed serious instability in the lower cliffs and that it was unsafe to rebuild and reconnect the damaged staircase.
Heavy storms, shifting sands and natural erosion processes have caused the instability, severely eroding foundations and impairing the lower steps and rails.
Area chief ranger Michael Smith called for people to adhere to warning and closure signs.
“We are asking the public to understand that this closure is imperative for public safety,” he said.
Parks Victoria is investigating building a lookout halfway down the existing stairs where the cliffs are stable. Works would be completed before spring 2017.
Mr Smith said Parks Victoria understood people valued beach access in the area and nearby Murnane Bay upgrade works would offer an improved visitor experience.
Moyne Shire mayor Jim Doukas said the move was a blow for tourism and the steps’ closure would cause congestion at other lookouts.
He said engineers could design steps to “handle erosion” and safety fears were an excuse.
Parks Victoria will host an information session at Childers Cove on Saturday from 10am to noon.