During a visit to the electorate last Wednesday, April 18, Mr Howard said up to $10 million will be provided from the future Federal Auslink Funding for the Pacific Highway to fund 50 per cent of the total cost of constructing a grade separated interchange (or flyover) at the intersection.

"The local community have already raised concerns about safety and traffic volumes at the current intersection," Mr Howard said.

"Previous NSW Government commissioned studies of the current intersection are unable to guarantee that it will be adequate in addressing traffic volumes and safety concerns after 2016, which is less than 10 years away.

"Additionally, constructing the grade separated interchange now, rather than leaving it until 2016 or later, is almost certain to result in a lower construction cost.

"This approach is consistent with AusLink arrangements for other current Pacific Highway projects that are funded on a joint 50-50 basis."

Federal Member for Paterson, Bob Baldwin welcomed the funding offer and called on the NSW Government to keep its end of the bargain.

"It (the NSW Government) has previously said it would be happy to provide further funding if Federal funding became available," Mr Baldwin said.

"Well here it is, a concrete commitment from the Federal Government. The Premier should come and inspect the site himself, meet with local residents and listen to their concerns about volumes of traffic and motorists turning onto and off the Pacific Highway.

"Residents in Hawks Nest and Tea Gardens shouldn't have to battle semi-trailers, coaches, and cars travelling at high speed just to get to and from home."

Great Lakes councillor and Tea Gardens resident Len Roberts paid tribute to the efforts of local members Bob Baldwin and John Turner, and put pressure on NSW Treasurer Michael Costa to match the commitment.

"We call on the Treasurer, Mr Costa, who appears to be a man of his word, to honour this promise and open the purse strings so that the RTA can build it now whilst the contractors Baulderstone Hornibrook are still putting the final touches to that section of the Pacific Highway upgrade," Cr Roberts said.