Health and social welfare organisations have praised Ballarat City Council for rejecting the proposal on Wednesday night, but the decision could face a challenge at VCAT.

The proposed 1200-square metre discount liquor store, on the Sam’s Warehouse site at the corner of Peel and Little Bridge streets, would have been less than 500 metres from dozens of businesses selling alcohol.

Ballarat Community Health chief executive officer Robyn Reeves said if the store had been approved, it would have likely led to more alcohol-related health problems in the community.

“If you think about it logically Ballarat doesn’t need more alcohol outlets.

“Council’s own health and wellbeing policy talks about the harm alcohol can do – this would have been a backwards step,” she said.

Ms Reeves said research from national Preventative Health Taskforce showed that increased numbers of alcohol retailers lead to greater consumption.

“A great big new outlet leads to the possibility of a price war, and that would be an unhealthy thing in terms of increased drinking.

“The taskforce has recommended an increase in the price of alcohol for that reason.”

The Courier was unable to contact a spokesperson for First Choice Liqour owners Coles yesterday, but a representative told Wednesday’s council meeting the decision would cost the Ballarat economy $2 million in construction work and around 20 jobs.

Ms Reeves said the jobs could be created in other areas of the economy.

“And additional money spent on alcohol would not have been a good thing for Ballarat,” she said.

If approved, Ballarat would have joined Bendigo and Shepparton as the only cities in regional Victoria to have both First Choice and Dan Murphy’s.

The application noted that within 500 metres from the proposed Ballarat store, existing packaged liquor sales are already available from Liquorland and Woolworths Liquor.

Within the same area there are 27 businesses with existing liquor licenses, including pubs and restaurants.