Merbein residents rage over state government’s plan to build $36m rehab centre on former school site

A Labor government-funded drug and alcohol rehab centre is causing outrage in Merbein, with residents blindsided by a move they say devalues their homes and puts safety at risk.

Merbein local James Perry said the decision has devastated him and his neighbours and says it has left him "essentially homeless" Picture: Stuart Kavanagh

Residents of a Victorian town in the grip of a severe ice crisis say they have been blindsided by the Labor government’s plan to build a $36m rehab centre at a former school site.

The state government announced plans for the 30-bed alcohol and other drug (AOD) facility in 2022 in Merbein, near Mildura in the state’s north, with the former Merbein Primary School selected as the preferred site.

The location was locked in two years later, with construction expected to begin this year

Touted as the region’s first residential rehab, the facility will support up to 200 people a year — but many nearby residents are fuming over what they describe as a government backroom deal that’s left them blindsided and their properties devalued.

The Mildura LGA — which took in Merbein — continued to rank among the worst in the state for drug offences, with possession charges and meth-related harm one of the highest rates in the state.

Police and health workers are grappling with a region-wide ice crisis, backed by some of the highest per capita rates of ambulance callouts and treatment episodes in regional Victoria.

Latest data reveals Mildura had a methamphetamine-related ambulance callout rate of 45.44 per 100,000 people — higher than Bendigo, Shepparton, and Mornington Peninsula — according to Turning Point’s AODstats platform.

Methamphetamine is now one of the top reasons locals are accessing alcohol and drug services, with police data showing Mildura routinely outpaces major centres like Geelong, Shepparton and Dandenong for drug crime.

The site of the mooted $36m rehab drug and alcohol facility — the old Merbein Primary School on Jenner St. Picture: Stuart Kavanagh

Merbein Lions Club president Phil Sedgmen said the community was not against the AOD facility, but its proposed location, highlighting safety and infrastructure concerns.

“We haven’t got a 24-hour police station, no bus service, no taxi service and no medical facilities in Merbein. This is not just my opinion, but more than 1000 people have signed a petition about it, it is just ridiculous,” Mr Sedgmen said.

Victoria Police says it was consulted in the early planning stages and supports the project. Picture: Glenn Milne

James Perry, whose house faces the proposed site, had called Merbein home for nearly two decades and said the announcement left him devastated.

“A week before this decision I was about to borrow another $100,000 from the bank to renovate the place … now, my gut instinct tells me I will probably need to knock it down and sell it as a block of land,” Mr Perry told the Herald Sun.

“The decision has essentially left me homeless.”

Mr Perry said that he and his neighbours directly across from the site of the AOD facility were only made aware of the decision the day before it was made public.

“(We all) received a flyer in the mail around 4-5pm the night before it was released to the public,” Mr Perry said.

The first line of that flyer reads: “We are building a residential drug and alcohol rehabilitation facility on Jenner St in Merbein”, leaving no room for discussion, further infuriating locals.

Merbein Lions Club president Phil Sedgmen has been a leading voice for the community against the location of the rehab facility. Picture: Stuart Kavanagh

Despite the scale of opposition, the state government has declined to address the specific concerns raised by residents — including infrastructure limitations and the lack of prior consultation.

In a statement, a government spokesman said the facility was part of broader efforts to reduce alcohol and drug-related harm.

“Whether it’s opening new residential rehab beds, introducing pill testing or expanding access to pharmacotherapy — we’re getting on with the job of addressing and reducing alcohol and other drug-related harms in our community,” the spokesman said.

“People struggling with addiction deserve the best care wherever they live. Residential rehabilitation is a vital health service that supports those struggling with addiction to get the care and support they need — that’s why we have doubled the number of residential rehab beds across the state.”

The spokesman did not respond to questions about why Merbein was chosen, or whether they would continue to consult with residents.

The Victorian Health Building Authority assessed eight potential sites across the region, including publicly and privately owned land, and selected the former school site in Merbein.

No details have been provided about which other sites were considered, nor why Merbein — a town without 24-hour health services or public transport — was ultimately chosen.

Mildura Nationals MP Jade Benham slammed the Allan government saying the lack of transparency was a slap in the face to those in the northwest of the state. Picture David Geraghty

Mildura Nationals MP Jade Benham slammed the government, and said while she supported the facility in principle, the lack of transparency was a slap in the face for locals.

“A lot of this discussion could have been avoided with a genuine effort at consulting the community,” she said.

“Communities like Merbein just want to be consulted.”

Ms Benham said the petition that had garnered more than 1000 signatures was great, but bemoaned the fact it had to come to that.

“(The petition) is very hefty, which is great, it shows the community are engaged, but wouldn’t it have been better for the community to be engaged in the initial planning stages before the announcements were made,” she said.

Victoria Police said it was consulted in the early planning stages and supported the project.

“While drug use is primarily a health issue, we know that illicit drugs are a key factor in crimes committed,” Inspector David Rowe said.

“As such, police are supportive of this facility, as those with substance abuse issues previously had to travel long distances for support.”

Inspector Rowe said police continue to provide a 24-hour response in the area.

“We are well equipped to respond to any incidents in Merbein, with additional support available from police in Mildura and Red Cliffs if required,” he said.