In September, the Waitaki District Council was greenlit for $3 million from NZ Transport Agency Waka Kotahi to install traffic lights and improve accessibility in the north end of town, where schools and aged care facilities are based.
Waitaki MP Miles Anderson said it was a shame the project had been cut, but the government needed to balance its books.
"That doesn’t mean these projects aren’t front of mind for myself."
Big cities often made "more noise" about their issues and as a result got more funding, which meant smaller southern communities sometimes did not get what they deserved.
"We miss out a lot in the southern heart of the South Island."
The crossings in that area needed to be addressed and he would be advocating for "sensible spending" in regards to safety and roading in Waitaki.
Mayor Gary Kircher was more direct about his feelings.
"It’s a kick in the teeth."
The council was notified of a likely cancellation to the funding last week, but it was confirmed yesterday in a letter to the council from Minister of Transport Simeon Brown.
The money would have gone towards three sets of traffic lights installed in Oamaru’s Thames Highway and upgrades made to 13 side-road entrances for wheelchairs and mobility vehicles.
Without the funding, the council has had to scrap the project and Mr Kircher believed something of its scale would now never be realised.
"It was a once in a decade opportunity that’s disappeared."
The council recognised the challenges the new government had in balancing spending, but it was another example of Waitaki being left out of funding.
Another example was the "disappointing" allocation Waitaki received in the provincial growth fund, receiving only about $1.5 million of the $3.05 billion set out for smaller New Zealand communities.
He believed it should have received about $20 million of that funding, based on its population.
"It was really unfair how that was allocated."
The central government had an obligation to assist with upgrading the state highway, but the cancelled project would have seen many improvements to other streets.
"There was an opportunity to do something really beneficial for our community.
"This was just such a meaningful project for us."
There are five schools in the area and pupils use the crossings to access school.
Pembroke School principal Brent Godfrey said the news was "really, really disappointing."
The school sent staff out to help stop traffic at the Thames Highway crossing because it was so dangerous.
