Government is diverting $1.5 million earmarked for buying new buses to spend on a long-awaited upgrade of the bus terminal in Hamilton.

The news was welcomed by Corporation of Hamilton secretary Roger Sherratt, who has been pressing for the improvements.

Work on the terminal, which was built in 1974 and expected to last 10-15 years, should begin this year with Government financing the structural work and the Corporation, which owns the land, upgrading the surface.

Finance Minister Eugene Cox told MPs yesterday: "In order to accommodate the Corporation's request for assistance in this important project, the Transport Ministry reduced its planned acquisition of new buses by $1.5 million in 2002-03. This project will reduce existing risks to public safety as well as improve traffic flow."

Mr. Sherratt said: "We are delighted Government has put aside money for this and we will work in partnership with them.

"We are delighted to think the bus terminal is now going to be improved after many years as it was. We are optimistic it will be greatly improved, even though it is in a relatively confined space."

Last December, Transport Minister Dr. Ewart Brown said he was unsure if he would get funding for the upgrade in the Budget and the project may have to wait several years.

Community activist Charles Spanswick gathered a petition with more than 1,000 signatures demanding action because he claimed the terminal is dangerous and an eyesore to tourists.