Discussions over the sealing of The Hatch Road will go before Port Macquarie-Hastings Council's August meeting.
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The road is on the western side of the Maria River and services around 85 residents.
Federal MP Pat Conaghan secured funding to seal the road during the pre-election campaign in 2019.
Mr Conaghan says he wants to work with council on the project.
"I am keen to work with our local government authorities on projects to benefit local communities," Mr Conaghan said.
"In regard to the Nationals' pre-election promise of $370,000 in funding to cover the cost of sealing the Hatch Road, I confirmed immediately after the election that the funding is available with the federal Department of Infrastructure.
"I wrote to Port Macquarie-Hastings Council requesting an update and to confirm the funding could be called upon once the project is 'shovel ready'.
"I received a response from council indicating planning for the road resealing had begun and would be tabled at the August council meeting for consideration by councillors."
Mr Conaghan said he will continue to liaise with council on behalf of Blackmans Point residents to ensure the project is expedited in their project timetabling.
Council general manager Craig Swift-McNair said the federal funds will be used to re-seal part of The Hatch Road that was previously sealed.
"Council will consider further information in relation to this at the August 21, 2019 Council meeting," he added.
Some sections of The Hatch Road were ripped up by council in 2003.
Resident Stuart Redman, says he welcomes the funding announcement.
Pat Conaghan has realised the severity of the health of the residents and has lobbied for funding to seal the road.
- Stuart Redman
"Pat Conaghan has realised the severity of the health of the residents and has lobbied for funding to seal the road," Mr Redman said.
"The federal MP has seen the urgency in organising that funding.
"The funds will be available as soon as council is shovel-ready for the project."
The Hatch Road continues to be a bone of contention between residents and the council following the release of air quality monitoring testing.
Residents pushed council to undertake the testing after residents raised concerns over the use of recycled crushed concrete.
The Hatch Road residents say the crushed concrete includes crystalline silica and have raised their concerns over the potential health effects that fine particles from this material might cause.
The testing occurred from February to April 2019.
Council general manager Craig Swift-McNair said crystalline silica is a naturally occurring material and is present in almost every type of rock, sand, clays and gravels.
"As concrete is made with rock aggregate and sand, it too contains crystalline silica," he said.
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