This is according to councillor Eddie Hughes who urged the council to take a stand on the issue.

Councillor Eddie Hughes said, however, the planning minister could block the decision made.

"The Whyalla City Council needs to fundamentally reassess its planning approach to the Point Lowly Peninsula and it needs to realise that it has a potentially major tourism magnet in the Upper Spencer Gulf," he said.

Cr Hughes believed the council could be part of a "bigger picture" with a campaign to re-instate the coastal road between Port August and Whyalla.

He said the hill country along the coast should return to public domain as a conservation park as a trade off for the massive alienation of land by the Department of Defence and as a land based complement to the creation of the multi-use marine park.

Cr Hughes said this also included professional wild catch fishing activity to be banned north of Point Lowly, Ward Spit with appropriate compensation for professionals.

"The council also needs to realise that you do not enhance our community by passively allowing others that do not live here to degrade our environmental and recreational assets," he said.

"Protection of the Point Lowly Peninsula and the Upper Spencer Gulf will enhance Whyalla's lifestyle attributes.

"The announcement by OneSteel is an indicator of the direction that can be taken that allows us to build on our bread and butter industrial base while protecting those attributes that enrich and enhance our community".