In June 2012, the government allocated $100,000 for Roads and Maritime Services (RMS) to conduct a study to look at the most feasible route for a potential bypass at Albion Park.

The NSW government's recently released Illawarra South Coast Regional Action Plan lists a planning study for Yallah to Oak Flats (Albion Park Rail upgrade) in the regional transport section and gives it a completion time frame of 2015.

"I simply cannot believe that a simple study will take the minister two and a half years to complete," Ms Watson said.

"It's no wonder that the Minister for Roads and Ports, Duncan Gay, has been ducking and weaving whenever I have asked him questions on when the $100,000 study that he announced in June 2012 would be released."

Ms Watson said the government had announced the $100,000 study merely to "shut down the calls" she had been making about the bypass.

"I will continue to put pressure on the government to start the study and have it completed before the 2015 timetable," she said.

Ms Watson also criticised the regional action plan, calling it a "glossy waste of time and money".

"This so-called 'action plan' is an enormous disappointment to the Illawarra region," she said.

"Many of the initiatives are rehashed budget announcements, which themselves are nearly all behind schedule, pinched initiatives funded by the Commonwealth government, and plans for further plans."

A spokesman for Mr Gay said the RMS review into the existing road corridor in the Shellharbour City Council Local Environmental Plan was expected to be completed by the end of this year.

"The study will identify if the route is still the best alignment for the proposed bypass," the spokesman said.

"Once the study is completed, community and stakeholder consultation will be carried out to develop a concept design for the possible future bypass."

Kiama MP Gareth Ward said he would continue to apply pressure on all ministers to make sure the action plan was delivered.