Launceston aldermen expressed disappointment that nothing had been done to improve traffic flow at the Lindsay-Goderich street intersection, despite traffic flow being a long-known issue.

The council has anticipated that traffic at the intersection would be ``beyond capacity'' when the new Bunnings superstore in Lindsay Street opens this Friday.

Alderman Hugh McKenzie said he doubted that the Infrastructure Department had treated the intersection as the priority that it was.

Alderman Jim Cox, a former government minister, said money to fix the problem was removed to fund the cost blowout from East Tamar Highway upgrades several years ago.

Council general manager Robert Dobrzynski said the department did not have the funds to promptly respond to the intersection's issues, with more than 90 per cent of its budget already committed to other projects.

He said he had negotiated with the department six months ago to fund an appropriate design concept for the intersection.

``It is the busiest intersection in the city so a long-term solution, which will involve many millions of dollars, will be required,'' Mr Dobrzynski said.

He said Bunnings contributed ``extremely limited'' funding towards intersection works.

Aldermen Tony Peck and Robin McKendrick had raised a roundabout concept more than 12 months ago.

A motion from Alderman Ted Sands that the council seek urgent discussion over improvements to the intersection was lost 1-11 after aldermen agreed that the issue was being adequately responded to.