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Workers in surrounding office buildings were unable to leave after police checked a white hatchback on Collins Street shortly after midday.
Police, including a bomb squad, were called to the scene and a man was quickly taken into custody.
The man will be questioned in connection with an “ongoing investigation by the Arson and Explosives Squad”.
”The matter is not terrorism-related and there is no immediate threat to the safety of the community,” police said.
“The bomb squad has deployed to carry out a safety check on a vehicle on Collins Street.”
Collins Street has since reopened.
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