In its 2020-21 ACT Budget submission, the Fyshwick Business Association has called on the government to take urgent action to protect the amenity of what it describes as a "modern and evolving" industrial suburb.

The association's president, Rob Evans, said that with over $2 billion in annual economic activity, Fyshwick is the second largest economy in the ACT and "a focal point for locals and tourists seeking access to the broad range of retail and commercial goods and services on offer".

He said that the diverse work spaces available in the industrial area, together with its proximity to the city, has created a home for many of Canberra's creatives and leading artists.

He said that waste handling and waste transfer, such as that planned by the Hi Quality Group for the large, vacant Tennant St site previously used by Rocla, was completely unsuited to the industrial suburb, despite zoning which would permit it to happen.

Up to one million tonnes of materials processing a year, including asbestos being stored before being sent into NSW, is planned for the site.

"Through a combination of neglect and poor planning by the ACT government, the future of Fyshwick is now under threat as the spectre of rapidly increasing commercial rates, little to no investment in the public realm and ad hoc planning approvals are causing many owners and tenants to look elsewhere," Mr Evans said.

"The idea of waste recycling in the ACT is an exciting opportunity and has the full support of the FBA but it has no place in a modern and evolving Fyshwick.

"The territory has a large number of sites available in Hume that are directly adjacent to the old rail line on the NSW/ACT border and the FBA believes that it would be preferable."