A new location proposed for The Lookout could bring an end to the city's hard-fought campaign to open a residential rehabilitation centre.
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The Western Region Alcohol and Other Drug Centre, which has been steering the push for the facility for eight years, is looking at the possibility of a greenfield site in Framlingham.
Gunditjmara elder Uncle Lenny Clarke said he understood the difficulties faced in finding an appropriate location.
"Everyone wants the facility built but no one wants it in their backyard," he said.
"So what I have said is 'we have land we can offer', because I can see (the facility) being one of the best things that the local community in south-west Victoria could benefit from."
The location of The Lookout was initially proposed for Dennington's Atkinsons Lane, which was approved by VCAT in 2020 following years of objections about safety, noise and the site size.
But in April 2024 WRAD Health chief executive Mark Powell said the location was no longer on the table and it was looking for a greenfield site.
The state government is yet to fund The Lookout despite WRAD Health committing about $820,000 and community pledges reaching $685,000.
But Mr Powell said he was confident about the future of the facility.
"We are excited by the prospects of designing a truly inclusive model that embraces the rich history of this country, combined with the evidenced-based strategies of a residential rehabilitation centre," he said.
Mr Powell, Uncle Lenny and other WRAD Health representatives met with Wannon MP Dan Tehan, South West Coast MP Roma Britnell and Liberal Senator Anne Ruston this week to discuss the "exciting new development".
Mr Powell said there were good discussions around the need for the facility, and the issue of travel presenting too many barriers for those in Warrnambool, where the closest rehab facility open to Aboriginal and non-Aborginal people was at least a two-hour drive away.
Mr Tehan said he was "absolutely committed" to working with WRAD Health and Uncle Lenny on a site they deemed appropriate.
"We have to do the work to make sure everyone is on board but I think it is a really, really positive way forward," he told The Standard.
"At the start of the meeting Lenny articulated very clearly how many lives are sadly being devastated by the fact that we don't have a site here. If we can get full agreement on the location of the site and all the planning done, then we should be in a very strong position."
Mr Tehan said a plan was now in place to seek about $100,000 in funding for pre-planning works.
The minister is expected to travel to Canberra with Uncle Lenny and Mr Powell to meet with Minister for Health and Ageing Mark Butler and Minister for Aboriginal Affairs Linda Burney this year.
There are also plans for the pair to go to state parliament with Ms Britnell to meet the Minister for Aboriginal Affairs Gabrielle Williams.
More than 800 people sought treatment at WRAD Health for substance issues in 2023 and less than five per cent of clients who needed residential care said they were willing to access it outside the south-west.
"We are overwhelmed by the number of people using drugs who are unable to get the help they need in their own backyard," Uncle Lenny said.
"Too many people leave treatment early because they want to return home. People need to be healed at home.
"We know there will be hurdles (getting the facility up and running) but we will work around them. I am looking forward to spearheading the campaign to get the project up and running."
The Indigenous elder is the chairperson of The Shara Clarke Aboriginal Cultural Education Centre, a registered charity launched in honour of his late daughter, and a Koori Court elder who strongly advocated for the specialist court in the city 20 years ago.