Port Macquarie MP Leslie Williams has called on the council to take its "most viable route" for the proposed orbital road off the table.
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Mrs Williams has outlined a response from Environment Minister Matt Kean which highlighted environmental constraints facing the proposed orbital road in light of Lake Innes Nature Reserve.
The minister's letter confirmed National Parks and Wildlife Service (NPWS) wrote to Port Macquarie-Hastings Council during the community consultation to highlight the nature reserve's outstanding natural and cultural values including koalas and the potential impacts of the road project.
"NPWS noted that the proposal corridor would separate the reserve's northern-most section," the letter said.
"The reserve is known to contain important koala habitat and corridors. An increase in weed and pest species has also been identified as a risk."
NPWS and the council continue to engage on the proposed orbital road.
An act of parliament would be required to revoke land from Lake Innes Nature Reserve to be used for a road corridor.
The minister's letter said lands reserved under the National Parks and Wildlife Act 1974 would generally only be revoked as a last resort and where no other practical options were available.
Mrs Williams was clear about her position.
"I can assure you that while I am sitting in that parliament representing the people of Port Macquarie, I will not be supporting a change in an act of parliament to dissect this nature reserve," she told residents.
Mrs Williams said the minister's letter vindicated her concerns and those of the community.
The council is progressing a strategic business case with all orbital road route options on the table.
It separated the airport access road from orbital road project investigations.
Council's general manager Craig Swift-McNair said the council resolved on June 19 to proceed with the development of a strategic business case that will include looking at a range of options to alleviate traffic congestion via better dispersal of traffic across the network.
This includes alternate routes for the proposed orbital road, he said, as well as potential upgrades to the existing Port Macquarie road network.
"Council has never assumed that crossing the nature reserve would be easy, nor has council taken this lightly, hence why, as stated by Minister Kean in his letter to Ms Williams, NPWS and council continue to engage on this issue," Mr Swift-McNair said.
Port Macquarie Better Orbital Options Alliance's Phil Lloyd said there was a myriad of ecological reasons why the council should not go ahead with the road link.
He said: "Why would you waste ratepayers' money on something that's not going to be permissible or funded?"
Denis Lane said he took a lot of confidence from the minister's letter.
Mr Lane encouraged the council to go back to the drawing board to examine traffic congestion and attempt to solve the problem with upgrades to existing roads.
Mrs Williams also urged the council to work on delivering already planned road improvements.
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