Wingecarribee Shire Council is to arrange a public meeting in a bid to form a community action group to seek an audience with Mr Scully following a refusal by the Roads and Traffic Authority (RTA) to contribute to the multi-million dollar project.

The change of tack follows a perceived u-turn by the RTA in relation to the provision of funding, with council general manager David McGowan describing its rejection of an application for a special grant as "180 degrees" on positive indications given before Christmas.

Mr McGowan has told councillors that he believes they are being led "round and round in circles" by the RTA.

This is the latest chapter in a long-running dispute between council and the RTA over who should pay for much-needed repairs.

Council's agreement in the early 1990s to divert through traffic from Bong Bong Street via Station Street means it is ultimately responsible, however with a rates income of about $12 million per annum and a total rebuild expected to cost upwards of $20 million it is not in a financial position to undertake the work it considers necessary.

Its argument is that it has reduced the volume of traffic on the RTA-maintained main street by two-thirds - with an average now of more than 14,000 vehicle movements on Station Street each day - so it is only fair that it receives funding assistance.

There has been a suggestion bandied about at the Civic Centre that redirecting through traffic along Bong Bong Street may gain a more favourable response from the RTA, however Mr Oakes-Ash has warned that consideration of such a proposal will not sit comfortably with traders.

Mr Oakes-Ash, who has 30 years' experience in the construction materials industry, has declared himself available to head the community push for a government contribution and meet with Mr Scully.

He has also informed councillors that other members of the chamber's bypass taskforce, which also includes former RTA chief executive Bernard Fisk, will also be keen to play a part.