Hobart City Council votes to dip into contingency fund for Collins Street bike lanes

The state government reneging on $170k for new bike lanes in Hobart’s CBD was not enough to put a stop to the project, after the council found a solution to the funding shortfall. Latest.

Cyclist on the intersection of Collins and Barrack Street – New bike lanes and parklets proposed. Picture: Caroline Tan

The creation of bike lanes on Collins Street will go ahead, despite the state government reneging on funding for the project, after the council voted to dip into its contingency fund to pay for the changes.

Transport Minister Eric Abetz announced on Friday the $170,000 in funding, for half of the upgrade, would be pulled after community members and business owners spoke out against the plans.

Four Hobart City elected members with two Collins Street business owners, transport minister Eric Abetz and business leader Edwin Johnstone. Picture: Genevieve Holding

On Monday the council voted in favour of using a chunk of its $500,000 capital works contingency fund to cover the cost.

It means the council is now shouldering the full cost of the upgrades.

“I think that was a terrible home goal, to be out lobbying the minister to take away the funding for this project and then to complain that we’re going to have to find the money ourselves,” Councillor Bill Harvey said at the council’s Monday meeting.

“If the project had’ve been left alone and there hadn’t been lobbying to try and undermine it, that $170k would have still been on its way.

“I’m really pleased to see this money has been used wisely.”

Councillor Bill Harvey. Picture: Nikki Davis-Jones

Councillor Louise Elliot applauded the Minister’s decision to withhold the funding.

“Yes it will ultimately be that ratepayers pay for this, taxpayers would have paid for this otherwise,” she said.

“With Minister Abetz withdrawing this funding, and again I understand completely why the minister for business would do that, we’ve seen an outpouring of community feedback congratulating the minister for this decision.”

Deputy Lord Mayor Zelinda Sherlock said it was ‘unusual’ the funding had been revoked.

“We received no correspondence from the minister to say ‘we’re going to withdraw funding and these are the reasons why’,” she said.

“To make that decision without consulting us and the CEO and elected members, I just find that disappointing.”

The decision for the council to use part of its contingency fund was supported 7-4.