SOUTH-WEST Victoria's multi-million-dollar power station projects are still on track despite investor confidence being rocked by the global economic turmoil.

Santos and Origin Energy yesterday confirmed it was "business as usual" in planning the massive generators for Orford and Mortlake.

Deakin University economics lecturer Chris Ratcliffe, however, said investor confidence had been shaken.

"The credit market has virtually frozen," he said.

"We'll see a tightening of investment. Companies will look at tightening the belt and assessing the situation."

Santos spokesman Sam Crafter told The Standard the company was busy in preliminary planning work for its $800 million gas-fired power plant at Orford.

"A final investment decision will be made at the end of next year," he said.

Origin Energy is still scheduled to start ground work in December on its $640 million Mortlake gas-fired plant and pipeline.

"It's business as usual," company public relations manager Yvette Reade said.

Mr Ratcliffe predicted the region's blue gum industry, set to start harvesting next year, could be affected if the global economy remained depressed.

"Initially the harvests will be OK because a lot of the orders are done six to eight months in advance," he said.

Mr Ratcliffe disagreed with commentators who pointed to another economic period like the Great Depression.

"I see this as a very extreme view. In Australia we have compulsory superannuation which will be an important aspect of the turnaround," he said.

"My biggest concern is the Reserve Bank's 100 basis points cut this week.

"It signals that there's more pain to come."