VICTORIA'S Environment Minister Ryan Smith has been urged to buy the site of the proposed Southern Ocean Beach House in Port Campbell and add it to the adjoining Crown land reserve.
Greens Member for Southern Metropolitan Sue Pennicuik told Parliament last week the purchase would be in the "interest of the long-term safety of the site".
Ms Pennicuik was a member of the Select Committee of Public Land Development which tabled its final report to Parliament in 2008.
The committee visited the Port Campbell site after local concerns about the beach house development being constructed on headland that is underpinned by a lot of sea caves.
Its report found the development would have significant visual impacts and could have serious geological stability and public safety impacts on the surrounding area.
Ms Pennicuik told Parliament last week the part of the coastline around Port Campbell was prone to unexpected collapse.
"We have seen London Bridge and several of the 12 Apostles collapse and other parts of that coastline could collapse without warning."
"Members will remember that the Great Ocean Road used to go all the way around the headland.
Now it does not go around it. It goes through Port Campbell because it was deemed to be too unsafe to go over the area that is underpinned by the sea caves.
"Those sea caves have been moving further inland towards the Southern Ocean Beach House site."
Ms Pennicuik said the Port Campbell Community Group had written letters requesting the government consider purchasing the site of the beach house, which was listed for sale in May.
Ms Pennicuik suggested the land could be used for "low-key public purposes".
The government is yet to respond to her request.