Under a proposal to be presented to Council on Tuesday 7 August, the panel would be made up of a mix of nominated and randomly selected market traders, customers, residents and other key stakeholders. The panel would deliberate on a range of options to address the market's ageing infrastructure, current operational requirements and future business needs.

Lord Mayor Sally Capp said it was important to share the challenge and decision making with those at the heart of the market in order to work out the best way to deliver critical market infrastructure.

"This is all about going back to the people who know the market, use it, and work at it – the traders, the customers and the community – and asking them how we can best invest in the future of Queen Victoria Market, while preserving everything we all love about the market.

"Make no mistake – this is a very serious process, and it will be front and centre when Council considers the next steps in this vital project for Melbourne." 

"We all love the authenticity and theatre of the Queen Victoria Market but current conditions mean the market is struggling to meet challenges in a range of areas including future viability, heritage, safety and security."

The new engagement approach follows a decision by Heritage Victoria in March this year to refuse a permit from the City of Melbourne to dismantle, restore and reconstruct the western section of Sheds A to D. This would have allowed for the construction of a new below ground operational area, including customer car parking, a logistics and waste management centre, more storage and trader facilities, along with new public toilets and customer service centre.

The People's Panel will make its decision within a framework of around 10 broad principles vital to the preservation and future success of the market, that themselves will be subject to discussion. These include: retention of the open air market and preserving heritage; better site security; work, health and safety and food safety improvements; maintenance of the affordability and authenticity of the market; and enough car parking.

In relation to parking, traders and customers have expressed growing concerns to City of Melbourne and QVM management regarding the loss of car parking within the broader market precinct, such as in Therry Street.

Following further analysis, management has recommended to Council that the provision for car parking in the precinct be increased from 720 bays to 1000 bays.

The Lord Mayor said she spoke with traders in June at their Trader Representative Committee meeting and had also heard their calls for increased car parking as a priority.

"Without pre-empting a decision, Council has indicated that the delivery of new car parking across the precinct needs to be future proofed and consistent with our Transport Strategy and Central City Urban Design guide. This would enable these spaces to be transformed into other uses as the market evolves."

Council has previously committed that  500 car parks will be located at the Munro site, but has not yet determined where additional car parking bays may be located within the precinct. This decision will now form part of the People's Panel deliberations in coming months.

It is anticipated that members of the newly-announced QVM Committee of Trustees, the highest source of advice to Council on strategic decisions regarding market renewal and operations, would observe and provide support to the proposed engagement process.

If the proposal is approved, the City of Melbourne will appoint MosaicLab, a deliberative engagement consultant, to develop and implement the new process. This includes overseeing the appointment of 28 randomly selected traders, customers and community members together with 12 invited key stakeholders to form the People's Panel, who all have an interest in the future of Queen Victoria Market.

Through this process the City of Melbourne's original proposal will be one of the plans considered, along with proposals that have been developed by other stakeholders, as well as new alternatives developed by the City of Melbourne, technical reports and other facts and information and evidence to assist deliberations.

Subject matter experts and relevant authorities such as Worksafe and Victoria Police will be invited to provide their technical expertise and advice as requested by the panel.

Heritage Victoria representatives will be invited to observe the deliberations and hear more about the trade-offs, meaning that they and other stakeholders will be in a far better position to consider the outcomes.

The Lord Mayor said: "Each option will have benefits and trade-offs and there is no easy answer. It's about balance and compromise. In simple terms, we need to start working together better and listening to one another to get the best outcome for our beloved Queen Victoria Market."

"This approach feeds into our commitment to give traders, customers and the community a greater say in the market renewal program and complements our recent decision to establish a Committee of Trustees as the highest source of strategic advice to Council on both renewal and strategic operational matters for the duration of the market renewal program."

Subject to approval by Council, details of separate self-nomination processes for the People's Panel and the longer term roles on the Committee of Trustees will be released shortly.