A row over access to public space on the roof of the St Kilda Sea Baths has put Housing Minister Martin Foley at odds with another arm of the Andrews government.
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The company behind the St Kilda Sea Baths wants to take much of the public space on the roof to build a pavilion for 300 drinkers at a cost of almost $1 million.
The Virgin Islands-based South Pacific St Kilda Pty Ltd has leased the sea baths from the Victorian government since 1999.
Any major changes to the sea baths must be approved by the government's environment department and Port Phillip Council.
St Kilda locals want the council and the government to oppose the plan - and on Sunday, Mr Foley said the plan was not acceptable.
Mr Foley is the MP for the marginal seat of Albert Park, which he holds from the Liberal Party by just 3 per cent.
He said the council must reject the pavilion plan, which he said would privatise public space.
The plan would also ruin views of the bay from St Kilda Esplanade, he said.
"Rather than allow this space to be closed off to community, let's give it back," Mr Foley said.
But the government's environment department last year wrote to the sea baths operator and gave its consent for the company to proceed with the rooftop plan. A final step in the approval process will require Environment Minister Lily D'Ambrosio to sign off on the project.
Travis Atkins, who works for South Pacific St Kilda, said its plan would not privatise the rooftop.
"We have said there will be public access, and we want the public to attend," Mr Atkins said. "There is nothing that says we have to make it public, but the more people that come the better it is."
When South Pacific St Kilda signed the 50-year lease to operate the sea baths the company boasted that the rooftop would always be publicly accessible.
A 1999 press release from the company said: "The rooftop terrace, which has one of the best views in Melbourne, will be open to the public."
Since then, though, the rooftop has been little promoted and it is now leased for about 100 days a year by venues below - which regularly block it off to anyone but invited guests.
Residents say venues regularly block off access to the rooftop even when it should be completely open to the public.
Port Phillip Council will decide on the planning application in June.
Mayor Bernadene Voss said the council's compliance team was investigating whether access to the public rooftop was being inappropriately blocked.
