A certified contractor has so far removed the asbestos from the night soil dump which is only metres away from the coastline along East Beach.

The Standard revealed last year that an array of rusting refuse and rancid waste had been pouring into the sea from the night soil dump and adjacent rubbish tip with concerns raised by nearby residents.

Cr Ken Gale said the asbestos discovery was shocking and highlighted the environmental impact of leaving the sand dune exposed to the elements.

He told councillors the short distance between the rubbish dump and the sea would be eroded away within months and claimed garbage had already seeped out onto the beach.

Council minutes have claimed that survey data showed a five to nine-metre scarp between the present dune scarp along the beach and the test holes, indicating the presence of landfill waste.

Environment Minister Ryan Smith was contacted yesterday but did not respond in time for deadline.

Opposition environment spokeswoman Lisa Neville said Port Fairy residents were deservedly frustrated at the state government's inaction .

"Local member Denis Napthine and Ryan Smith were more than happy to appear for photo opportunities on this issue six months ago but they have put their heads in the sand since then," Ms Neville said.

"Six months on and the erosion is worsening and the Baillieu government dithers as the rubbish at the dump now threatens to ruin the pristine coastline and surrounding environment."