The path alongside the Princes Highway in South Ulladulla was constructed by Shoalhaven City Council using Federal Government economic stimulus funding but ends at Racecourse Creek.

Mrs Gash said the project was another example of government funds being used for "low priority projects in high visibility areas" instead of prioritising projects and rolling them out in a "well thought through manner".

Mrs Gash was speaking out after receiving a letter from Minister for Infrastructure Anthony Albanese in response to her calls for extraordinary funding to address several blackspot issues along the Princes Highway.

She had called on Prime Minister Kevin Rudd to make $20 million available for the highway following a spate of tragic accidents, including the December 28 accident at Termeil claimed four lives and the January 16 accident at East Lynne that claimed another two lives.

In his letter, Mr Albanese says the Federal Government is investing $11.6 billion in transport infrastructure in NSW over the period from 2008/09 to 2013-14 - a "substantial increase on the $4.5 billion spent by the Coalition Government over a similar period of time".

He also says the Federal Government has doubled the investment in the Black Spots Program to $500 million over five years and lists a number of other initiatives including investments in heavy vehicle safety and improvements at 292 rail level crossings across the country.

Mr Albanese says that while he understands Mrs Gash's concerns she should be aware that the Princes Highway is the responsibility of the NSW Government.

Council has applied for grant funding to construct a bridge over Racecourse Creek to enable the bike path to be completed.

A spokesperson said council had allocated its own funds should the request be trurned down.