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The bus stop was moved by the Waitaki District Council from Bond St to Sanday St in June to accommodate increased demand for parking in Bond St.
However, Intercity public relations manager Joleen Redden, of Auckland, said yesterday the company had not been advised by the council of any bus-stop changes.
It is believed Go Bus, the other main bus company that stops in Palmerston, has also not been contacted.
The situation is creating confusion for bus drivers, some of whom are now stopping illegally in the main street, where no bus stop is marked. Passengers are also puzzled, as they are not sure where to wait. Some buses are still calling at the Bond St stop.
The new Sanday St stop is not liked by local people because the lighting, seating and shelter are poor.
The Waihemo Community Board has said it will revisit the situation in six months if there are still concerns.
Council roading manager Michael Voss said the council tried to advise both Intercity and GoBus about the change of the bus stop site in Palmerston.
Waitaki Mayor Gary Kircher said he would follow up on the bus-stop situation in Palmerston with council roading staff. He would also talk to them about what could be done for the needs of bus passengers from Palmerston.