PREMIER Daniel Andrews and Bendigo mayor Peter Cox say criticism of multiculturalism is born from fear, a mean-spirited view of the world and a lack of education.
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The two gave speeches at Bendigo Town Hall on Friday, when the Premier announced $40,000 to programs promoting "social cohesion" in schools and workplaces.
Mr Andrews said he had been troubled by debates about multiculturalism in recent years, and recent weeks in particular.
"I have been troubled in recent days, I've been troubled for quite some time now, that there is an element in our community that don't value the cultural diversity and interfaith nature of our community," he said.
"They don't see it for what it is, it's not something to be afraid of, it's something to cherish and celebrate."
Mr Andrews said those who attack diversity have "a fearful, inward-looking (and) a mean-spirited view of the world".
He said the debate - including the Reclaim Australia rallies of last weekend - had been unhelpful, unhealthy and something to be concerned about.
Before attending the presentation at Bendigo Town Hall, the Premier took a walk around the CBD, stopping in to glance over some of the historic records kept at the Bendigo Library.
He was drawn to stories of the city's Chinese heritage, and used it as an example of how Bendigo had been stronger for its multicultural history.
Bendigo Interfaith Council members were invited to the presentation, along with councillors and business leaders.
Cr Cox thanked the Premier for the funding, and said he too had been troubled after the council received a petition two weeks ago from "anti-multiculturalism groups".
"We can't underestimate to some degree the hate that people have in their hearts," he said.
"A lot of the people that signed the actual petition were from Eaglehawk, California Gully, Long Gully - the place where I live.
"A lot of low income people.
"(I think) they're misusing words and phrases.
"We can't take that lightly, we have to speak strongly with purpose, with focus, about that we are a multicultural community that cares about everyone."
The $40,000 funding came from a $500,000 package of social cohesion grants, distributed across Australia.
Anglican representative of the Bendigo Interfaith Council Heather Marten said the funding would help to further establish the group.
She said the petition presented to council had also troubled members of the interfaith council.
"There has to be some leadership around this issue, if we're still getting petitions about multiculturalism then there's something wrong - we've always been a multicultural nation," Ms Marten said.