Liberal candidate for Ripon, Louise Staley, was in Stawell on Tuesday to announce that a re-elected Napthine Coalition Government would invest $500,000 in research and development funding to help find innovative local solutions to the tyre stockpiling problem.

"Allowing the continued accumulation of tyres poses a serious threat not only to the environment, but also the health and safety of communities like Stawell," Ms Staley said.

"Finding an answer to tyre waste will also reduce the bushfire risk to Stawell and similar communities."

Ms Staley said she was aware that more than nine million used tyres are currently stockpiled in Stawell.

"This funding will help to find a solution to that tyre stockpile problem," she said.

"What we will see at the end of this $500,000, is a plan in place that will eventually see these tyres removed.

"It will fix a major health problem and a potentially catastrophic health problem.It is also a basis for more jobs to be created in Stawell.

Minister for Environment and Climate Change, Ryan Smith, said the funding would establish a co-operative research partnership to find a solution to this legacy issue.

"This partnership will increase our knowledge and scientific output which could lead to world-class commercialisation opportunities," Mr Smith said.

"Tyre waste is not just a problem for Victoria, this is a problem across the globe. Funding world-leading research and development provides a great opportunity for Victorian knowledge and ingenuity to be showcased internationally.

"In April 2014, the Coalition introduced an interim waste policy to regulate tyre stockpiles in Victoria which imposes a threshold of 5,000 tyres that can be safely stored at one site.

"The Coalition directed EPA Victoria to assess more permanent regulatory options to manage stockpiling. Sustainability Victoria is also working with Tyre Stewardship Australia to develop sustainable end markets for recycled tyre products.

"This funding closes the loop to ensure Victoria has a complete framework in place to ensure that the tyres Victorian's dispose of have an afterlife," said Mr Smith."

Northern Grampians Shire chief executive officer, Justine Linley, said the funding announcement was welcomed, as it would help solve what has been an ongoing problem for Stawell and the state.

"Council really welcomes this funding commitment from the Coalition, as it means action will be taken to rid not only this particular portion of land, but also Stawell and the state, of the problem," Mrs Linley said.

"We are aware of other towns and regions that are struggling with similar stockpiles of used tyres, but none are as large as the stockpile in Stawell.

"We as a council will be watching intently how this progresses, as this funding commitment means Stawell will now be in a prime position to take real action with this funding."