Yesterday the Bunbury Welli-ngton Economic Alliance and Bunbury Chamber of Commerce and Industry called on the State Government to grant Millennium its licence to continue operating in Dalyellup.

The two joined forces in response to what they said were misleading claims over the site’s safety.

Alliance chief executive Matt Granger said the site had operated under strict conditions for more than 20 years and Millennium contributed $150 million in direct local spending each year.

The company is also a major employer with the sites in Australind, Kemerton and Dalyellup employing 350 people.

BCCI chief executive Allan Birrell said the government needed to act because a $250 million a year business was at risk.

"Given there are no identifiable risks the licence should be granted," Mr Birrell said.

He said closing the Dalyellup site "would put the whole operation under a cloud".

Last month the Department of Environment and Conservation’s contaminated sites branch listed the waste area as possibly contaminated with investigation required.

The classification "does not mean that the area is unsafe to live or work in" the DEC said.

In a statement Millennium said the DEC also found no evidence of waste leaching into the Yarragadee monitoring bore and the Radiological Council approved continued use of the site with monitoring.

But some residents still have concerns.

Former Shire of Capel councillor and South West Action Group member Jenny Fuller Hill said the group did not want Millennium to shut down, but it also did not want the site in Dalyellup any more.

“The residential development shouldn’t have happened there, but it’s there now and the waste site should move,” Ms Fuller Hill said.

She said the action group would continue to campaign because there were concerns over the safety of the drinking water.