The Tasmanian Government will not progress funding for Hobart City Council's Collins Street bike lanes.
Minister for Transport, Eric Abetz, said the decision came after reviewing feedback from affected community members.
"There was considerable concern in the community about this measure, and we have listened," said Minister Abetz.
"I have directed State Growth not to proceed with the Collins Street funding grant deed, noting this will not affect $120,000 in grants for Hobart City Council's separate Castray Esplanade shared path upgrade and Augusta Road bike lane planning.
"Our 2030 Strong Plan for Tasmania's Future is about developing stronger communities, and this decision gets the balance right.
"We are strong believers in active transport and are funding numerous projects."
The Better Active Transport in Tasmania and Better Active Transport in Greater Hobart grant programs take total direct investment to Tasmanian councils for community infrastructure and planning projects to almost $9.2 million.
