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The message comes from Otago Peninsula Community Board chairman Paul Pope, who noticed the vandalism in Portobello Rd on Friday.
It follows changes to speed limits around the wider Dunedin area starting in December last year, including Portobello Rd which recently changed from 50kmh to 40kmh.
Mr Pope said there was an "awful lot of frustration" surrounding the recently imposed speed limits, but that did not excuse the vandalism.
"The DCC are not fascists, they’re not Nazis."
People might not agree with the council’s choices, but insinuating they were fascists was not acceptable, he said.
The swastika was a symbol of hate, violence and racism and had no place in their community.
It was not a symbol of protest, he said.
Everybody, including the community board, was frustrated by the speed limit change.
There had not been a fatality on the road for about 20 years and hundreds of people had made submissions against the change.
People had to channel their frustration through the appropriate channels, such as speaking to community leaders and writing to councillors.
The vandalism has since been removed.