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That warning comes today from West Coast Regional Council chairman Allan Birchfield, as business owners in the glacier town survey deserted streets, and cafes and motels empty of international tourists.
"I was down there last week for a funeral - but the gloom was over the whole area; in Franz and Fox the businesses are either closed or partly open. It was terrible," Cr Birchfield said.
Contractors were "ready and waiting" to start work on the $24 million flood protection project approved by the Government last year for Franz Josef as part of the Covid-19 economic stimulus package, he said.
But the glacier town hurting most from the collapse of international tourism caused by the pandemic was still waiting for the relief that could save it.
"We still don't know when that's coming through but it is desperate down there, they really need the money to survive. It's just what they need to hold the line."
The planned flood protection project would create about 60 jobs in the township over two years as contractors built new stopbanks and replaced the bridge over the Waiho (Waiau) River.
Regional council operations manager Randal Beal said the Franz Josef contract was not as straightforward as the smaller projects in Greymouth, Hokitika and Westport.
"So the change in government and ministerial roles and the Christmas break have all led to delays."
The Greymouth Star has contacted West Coast-Tasman MP and Minister for Rural Communities, Damien O'Connor, to ask when the Government might come through with the funds.
By Lois Williams
Local democracy reporter