The state government is yet to commit funding for the interchange, which was left out of the budget for the first stage of the $44 million Ballarat Railway Precinct.

Asked whether funding for the interchange would be included in the May budget, Ms Allan she would not “preempt” the treasurer’s budget announcements.

Ms Allan was in Ballarat to mark the first week of 10 extra weekday train services and the city’s new bus network, which came into effect on Sunday.

“We’re only just now getting into those budget discussions but can I say that the government understands that there does need to be a long term solution, we’ve significantly boosted the bus services, we didn’t want to wait, we wanted to get the bus services in now,” she said.

A stop gap of seven temporary bus bays have been installed along Lydiard Street North, down from a planned 10.

Three bays, initially meant for Lydiard Street North, have been installed at Ararat Street.

Public Transport chief executive officer Jeroen Weimar said the government body would “absolutely” consider alternative sites for some of the Lydiard Street stops.

“The priority for me is to make sure we have a bus network that works well for everybody in Ballarat, my second is to make sure that where we have to have buses standing by for a few minutes before they start their services, we do that in a way that has a minimal impact on residents and the wider community.

“So if we can find a better solution then we’ll do that.

“My ideal outcome would be to have the entire coach and bus interchange in one location as part of the station redevelopment but that’s 18 months, two years away.”

Mr Weimar said PTV would continue to discuss options for relocating the Lydiard Street bays with the City of Ballarat. 

The Lydiard Street stops have raised the ire of residents, who on Monday said cars had been crossing to the wrong side of the road to avoid the backlog of buses on the street.