The cost of Hobart’s contentious ‘Transforming Collins Street’ project, including a bike lane trial, has climbed to about $600,000, council documents show.
The figure is more than 60% higher than the $370,000 originally forecast when the project was approved in 2024.
Hobart city councillor Louise Elliot obtained the updated cost ahead of Monday’s council meeting.
When the two-year trial was endorsed in September 2024, the first stage between Molle and Victoria streets was budgeted at $340,000.
The remaining section to Murray Street was expected to cost about $30,000 for signage and line marking.
A second question from Elliot revealed that section now carries a $200,000 budget.
The project also lost a $170,000 state government grant in October 2024, with then-transport minister Eric Abetz citing “considerable concern” from the community and local businesses.
Council later voted to cover the shortfall from its contingency reserve typically set aside for emergency cost overruns.
Elliot said the cost blowout was “exorbitant and unjustifiable”.
“The last I heard was that these works for a so-called trial were going to cost $340,000 and then another $30,000 for changes to Victoria to Murray Street,” she said.
“I don’t recall this huge jump in expenditure coming back to council for approval.”
She questioned whether the project was a “genuine” trial, claiming $4.2 million had been sought to make the changes permanent.
“… Concrete slabs have been poured. How can the community have any faith that this is a genuine trial? They can’t and people aren’t stupid,” she said.
Elliot said a 30km/h shared zone, previously considered by council, combined with peak-hour clearways, could have delivered similar outcomes at a lower cost.
“We need to encourage the community to safely share our roads. Decisions like this only deepen the driver-rider divide,” she said.
She also rejected suggestions grant funding reduced the burden on ratepayers.
“Grant money is taxpayer money,” she said. “Money doesn’t fall from magical money gods. Someone always pays.”
The Hobart City Council said a final cost would be confirmed once works between Victoria and Murray streets were complete.
It has previously said Victoria Street would be returned to two lanes, as before the trial, with Deputy Lord Mayor Zelinda Sherlock saying the change showed the project’s flexibility.
“Because this is a trial, we can test ideas, watch how people use the space and adjust as needed,” she said.
“It gives the community a chance to experience possible future changes without locking in permanent construction.”
