Dunedin, an hours drive away does provide some interesting riding. Unfortunately the proposed funding for the continued extension of the Otag Peninsular cycleway has not been confirmed.
The N.Z. Transport Agency has not agreed to fund 65% of the $1.4 million costs for 2011-2012. Work between Ohinetu Point and Pipikaretu Road will have to wait.
Could have been difficult cycling, working or being down there this week anyway! See http://www.odt.co.nz/news/dunedin/160258/high-winds-wreak-havoc
On the plus side The Dunedin City Council has decided to provide another $100,000 funding to work towards re-opening the Caversham Tunnel to cyclists and pedestrians. I used this tunnel in the 70's and 80's and would do so again.
Have a gander at https://www.facebook.com/pages/Dunedin-Tunnels-Trail-Trust/118505701463