Neither businesses nor cyclists in the capital are jumping for joy at the government's ditching of the $7.4 billion Let's Get Wellington Moving programme.
The government, Wellington City Council and the Greater Wellington Regional Council have agreed in principle to dump the plan.
Central government will now build and fund the Basin Reserve upgrade and second Mt Victoria tunnel, which it says will create opportunities for urban development and housing.
Wellington City Council will bring the Golden Mile project in-house and bus corridors will be priority projects, improving access to the airport and hospital.
The Cycling Action Network called the change disgraceful - especially the loss of light rail running to Island Bay on the south coast.
Patrick Morgan from the group said the government was dusting off old plans for the city.
"This is a disgraceful plan from the government and it flies in the face of what Wellingtonians have consistently voted for, which is a compact city with less reliance on private vehicles, better walking, cycling, public transport and affordable housing," Morgan said.
The city's Chamber of Commerce described the axing of Let's Get Wellington Moving as a mercy killing, but wanted more clarity on the future of the Golden Mile.
That job involves removing cars from the main route through the city from Parliament to Courtenay Place and now becomes the responsibility of the City Council.
But the business lobby group wanted a rethink.
Chamber chief executive Simon Arcus said there had not been a proper risk analysis on what would happen to businesses if it went ahead in its present form.
"There was one very flimsy risk analysis done, and so businesses are still living with uncertainty," Arcus said.
"The reality is you take out carparks and make the kind of changes proposed without understanding the risks and you will see prosperity and the economy hit the city.
"The questions about the Golden Mile are really about going back to council and working out what the priorities are for that street and there has always been a risk [with] the Golden Mile that we could cut off our nose [to] spite our face and end up driving people out of the city," Arcus said.
RNZ
