The government has withdrawn an application of more than HK$7.1 billion in funding for a new road in Sha Tin, a day before it was due to be discussed by the Legco Finance Committee.

Trunk Road T4 is intended to connect major roads on both sides of the Shing Mun River Channel – Sha Tin Road in the east and Shing Mun Tunnel Road and Tsing Sha Highway in the west – to help reduce traffic in the area.

The proposal is to build a dual two-lane trunk road of about 2.3 kilometres.

In response to RTHK enquiries, the Transport and Logistics Bureau said it wanted more time to "enrich" the discussion paper that it intends to send to the Finance Committee later.

Critics have questioned whether the scheme is needed or is worth the money.

The project carried a price tag of HK$1.1 billion when it was proposed in 2006.

Welcoming the funding withdrawal, Roundtable lawmaker Michael Tien said the proposed trunk road fails to address the crux of the problem, adding that the government should start constructing the Sha Tin Bypass to relieve traffic on Tai Po Road.

"In 2034, the Tai Po Road Sha Tin section will reach maximum capacity again. So it's like doing a bypass to the heart without fixing the main artery. And it's going to be a very expensive bypass," he said.

"To make that HK$7.1 billion really worth the money, they need to start constructing the Sha Tin Bypass."

Tien also said officials should have acted sooner.

"My first impression was that this government is very sensible in looking at and understanding the members' positions. And obviously this time they have a lot of dissent. I think the number of abstentions or the number of objections may be at a level where they do not feel comfortable," he said.