The council has stepped in to contribute just over $500 towards the cost of the annual Christmas Day Suburban Rumbler public transport service operated by the society.
Mr Dowden said that because of funding challenges due to the Covid-19 pandemic, the bus society had been facing the difficult decision of whether to cancel the popular Christmas Day bus service this year.
"We thought we would just have to close it down this Christmas."
Mr Dowden said the society was grateful to the regional council for its support.
The bus service using volunteer bus drivers would run on the St Clair to Normanby No8 route, departing St Clair on the hour from 9am to 6pm and from Normanby on the half hour from 9.30am to 6.30pm.
The bus hub would be closed, so the Suburban Rumbler would be operating via the Octagon and George St.
Mr Phillips said the council had supported it because it was a well-loved tradition and an opportunity to fill the gap on one of the rare days when public transport was not operating.
This year is the 11th year running the Otago Heritage Bus Society has run volunteer services on Christmas Day.
