Improvements to public transport in Queenstown have stalled due to a lack of response to an application for funding from New Zealand Transport Agency (NZTA).
The delay means an update of Queenstown's bus services will be delayed until next July at the earliest, Stephen Woodhead, chairman of the regional transport committee at Otago Regional Council, said.
In April, the ORC applied for $2.45 million to fund its Wakatipu Transport Strategy, which has plans to expand the local transport services.
NZTA announced in August that $11.6 million had been allocated for Otago's public transport over the next three years.
However, funds for Wakatipu come from the national pool rather than the regional pool, and NZTA had not yet decided on ORC's application.
"It is extremely disappointing that ORC and Queenstown Lakes District Council has been kept waiting for six months," Mr Woodhead said.
"This is completely unsatisfactory and delays the urgently needed development of public transport in the Wakatipu area."
NZTA acknowledges that the application has been drawn out.
Bruce Richards, regional director for NZTA, called the delay "exceptional" and said the change of government was a major factor.
"Since the application was lodged, we have been given a new policy statement by the new government, which resulted in a changed procedure for our funding application process.
"We also had a significant number of applications, and it all added to this unfortunate delay," Mr Richards said.
Some development are already taking place for the bus services in Queenstown.
QLDC infrastructure strategy manager Denis Mander said the council was updating the timetables and information panels at the bus stops.
Also, several bus shelters had been placed along the existing routes, Mr Mander said.
If funding was secured, the plan was to expand the bus routes to Kelvin Heights, Arthurs Point, Quail Rise and further into the Lake Hayes development.
"I would like to see this improvement sooner rather than later, and I had hoped we could start the trial of the new services this summer, but now we are looking at mid-winter," Mr Mander said.
"QLDC will not proceed with building bus shelters in the new areas until we know that the regional council has got funding for buses to those areas."
Bruce Richards, of NZTA, said he expected a decision on funding would be made within the next week.
