While volunteers have attracted almost $50,000 from the Dunedin City Council, deputy mayor Chris Staynes this week said the council was not keen to provide more help until the vessel was in the harbour.
Otago Harbour Ferry Inc was set up in 2004 as a non-profit organisation to restore the old ferry to a seaworthy condition, and operate it for passenger use on the Otago Harbour as a ferry and recreational excursion vessel.
Since the project began, the council has contributed a service grant of $20,000, a suspensory loan of $20,000, and community grant scheme funding of $7500.
The issue was raised briefly at the council's annual plan meetings on Monday, when Mayor Dave Cull said giving the organisation money did not mean the ferry would get business.
"The challenge for them is to get that sorted out first."
Asked about the issue this week, Cr Staynes said the trust wanted the council to increase its suspensory loan by $20,000.
He and Cr John Bezett had spoken to the Otago Harbour Ferry Inc last year, and the business plan the organisation had at the time had left the council "a little bit nervous" the money might not be enough to ensure the success of the project.
Cr Staynes said the organisation had made good progress on restoring the vessel, but it would struggle to get operational funding from charitable trusts once it was finished.
"We're saying it would be better to put a proposal to us once the vessel is in the water."
The ferry's backers also needed to look for a partner to help once the vessel was completed, he said.
The vessel could work as part of a package ferrying cruise-ship passengers towards Taieri Mouth for wildlife tours, rather than the passengers having to go by road.
Cr Staynes said the council was happy for the trust to get help from its economic development team for that.
If the trust came to the council and said it had the vessel in the water, it had partners for its business, and wanted $30,000 from the council's contestable fund for the next stage of the project, the council would look upon that favourably.
Otago Harbour Ferry Inc treasurer Hugh Montgomery said work on the vessel stalled from lack of cash.
He said the council appeared not to have changed its attitude since the meeting the two councillors last year.
The issues with aspects of the project like the business plan was "all too far ahead", Mr Montgomery said.
"We need to get the vessel in the water. We need to get funding to finish the restoration work."
