The south fared poorly in the Government's $500 million infrastructure funding allocation announced yesterday, but community leaders are being advised all is not lost.
A spokesman for Infrastructure Minister Bill English said a further $1 billion would be allocated to projects from the middle of this year.
"It is just a start. This is by no means the entire infrastructure expenditure."
Further announcements would be made around budget time in the middle of this year.
The only targeted spending announced for the south yesterday was the construction of seven state houses, worth $1.6 million, with further contested expenditure announced for state house renovation, school maintenance, information and communication technologies infrastructure upgrades and roading improvements throughout New Zealand.
The Dunedin City Council was hoping for funding for the $42 million Caversham motorway extension, the urban arterial route linking Strathallan St and Ravensbourne (estimated to cost about $16 million), several local roading projects and a contribution towards the Otago Stadium.
Mr English's spokesman said yesterday's announcements were "in a different space" to any contribution towards the stadium.
The DCC's infrastructure services committee chairman Andrew Noone said the council remained hopeful the region would get funding in the future for some of its major roading projects.
He could not say if any of the $18 million available in the package for road safety improvements, road development and structure upgrade would come to the south.
Prime Minister John Key said yesterday's initial allocation of $217 million for new schools, $142.5 million for transport and $124.5 million for housing would provide an economic stimulus.
He estimated $100 million worth of the projects would start before June 30, with the remainder beginning in the 2009-10 financial year.
All but one of the five main highway construction projects to be accelerated were in the North Island - the exception being the $180 million southern motorway extension in Christchurch start-ing next year.
The housing package allocated $104 million to upgrade state homes and the building of 69 homes over the next six months at a cost of $20 million.
Housing Minister Phil Heatley said the 69 new homes were in addition to the 450 Housing New Zealand intended adding to its housing stock before July.
Otago Chamber of Commerce chief executive John Christie said he understood projects that were ready for an immediate start were given priority, and he hoped southern projects would successfully secure contested funding.
But he said the whole country benefited through higher productivity from improved infrastructure, even if that spending was on roading in Auckland and Wellington.
Dunedin list MP David Parker yesterday said the lack of funding for specific projects for the south would lead to higher unemployment.
Mr Parker said the Caversham motorway, realigning parts of the northern motorway, insulating homes and the Otago stadium, would all have helped keep people employed.
