The State Government has stepped in after a $1.2 billion proposal for a tourism project on Hummock Hill Island was knocked back by the Gladstone Regional Council.

State Development, Manufacturing, Infrastructure and Planning Minister Cameron Dick said he had approved the move following a request by proponent Eaton Place for the Coordinator-General to use his legislative step-in powers.

It comes after the local council’s rejection of the development application in May and an appeal by the proponent to the Planning and Environment Court.

“In the Planning and Environment Court, the Gladstone Regional Council and the proponent, Eaton Place, could be arguing for three to four years,” Mr Dick said.

“That adds a lot of cost, time and uncertainty to both parties and to the ratepayers of Gladstone.

“Using step-in powers a new decision should be concluded in a matter of months.”

The proposal is for an integrated, master-planned resort on Hummock Hill Island in Rodds Bay, 30km south-east of Gladstone.

Plans include resort hotels, holiday units and camping grounds for about 2800 people, and potential permanent housing for up to 1200 people, with education and village precincts, boat ramps, beach access, an 18-hole golf course, retail outlets and a bridge to the mainland.

If approved, the project is expected to generate an average of 190 jobs a year on the island over the 17-year construction period and deliver 700 direct tourism and related industry jobs when fully developed.