While some believe an overpass is a suitable option, others are against the idea, but the underlying issue still remains that something needs to be done.

The train movements are increasing by the year and a potentially dangerous situation last month has sparked new calls for action.

An ambulance on urgent duty from Murrurundi to Scone Hospital was delayed by the crossing on the New England Highway for five minutes by a coal train passing through Scone.

The funding was announced to allow the investigation, planning and design of a solution to the problem that has been staring all stakeholders in the face.

However, residents are still a long way off seeing improved infrastructure as an agreed plan will have to be put to Infrastructure Australia for approval.

Upper Hunter Shire Council general manager Daryl Dutton told ABC News the Gillard Government must honour its long overdue election promise on the overpass.

He said there was still no funding transfer from the federal government to the state government so they could get on with their part of the job, which was still only pre-construction.

Federal Member for Hunter Joel Fitzgibbon said he spoke with the Infrastructure Minister Anthony Albanese on Friday and he was guaranteed the study funding is still coming but is caught up in the budget process.

Member for Upper Hunter George Souris highlighted the rail issue as a priority for the next two years in his election campaign.

Mr Souris said he believes eventually a by-pass is needed but for now an overhead bridge will give greater safety and security for the town and will prevent long trains sealing access for emergency vehicles to all parts of the town and district.

“Funding is a federal responsibility between the New Eng-land Highway and the Austral-ian Rail Track Corporation.”