Canberra Business Council's David Marshall said he nearly ran off the road when he heard work would be delayed on the convention centre, as the government prepares for a $300 million clean-up bill for deadly Mr Fluffy asbestos.

"Every sympathy for the Mr Fluffy homeowners, but the convention centre will generate hundreds of millions of dollars for the city and it should be a top priority for the government," Mr Marshall said.

The business council's tourism task force chairman, Mr Marshall said it was a misnomer the government had to front up with $350 million for the new centre on City Hill. Private enterprise would build the project, which had been talked about for 15 years.

"It is a revenue generator, and tourism brings in $1.8 billion, employs 17,000 people, and a convention centre is an employer of young people, it will bring hundreds of thousands of visitors into the city," Mr Marshall said.

"And we have a convention centre now which, within four years, definitely needs replacing. So I am hoping the government will get Commonwealth support for the Mr Fluffy replacement of homes, and the convention centre remains on track to be up and running by 2020."

Master Builders Association ACT president John Miller said the proposed light rail project should be delayed instead of the convention centre, elements of the $2.5 billion City to Lake infrastructure and a new sports stadium.

"I guess it could be argued that we have transport, and convention centre and some of the other things, we don't have," Mr Miller said.

"The reality is Capital Metro will be confined to one particular sector of the industry, whereas the other projects provide a lot of work for all sectors of the industry."

Opposition Leader Jeremy Hanson said the government could not swallow its pride and reprioritise the light rail project.

"When you have a budget in significant deficit and debt, these decisions then are in some ways taken out of your hands when other priorities emerge, that's why we have been very critical of the level of debt and deficit this government has been running," Mr Hanson said.

ACT Property Council executive director Catherine Carter said the convention centre was a higher priority than City to the Lake.

Chief Minister Katy Gallagher said the government had set aside $8 million for the convention centre's business case, but now may consider another upgrade to the existing one instead.

"We have never accepted full responsibility to build convention centre, because of other competing infrastructure demands and also our hope the Commonwealth would chip in for a  national institution," Ms Gallagher said.

No projects would be scrapped in the City to Lake development. No timetables had been allocated to particular infrastructure, but there was an expectation to begin the stadium and related pool within five years, the latest decision was to delay them beyond five years.

Feasibility and early design work on a proposal to lower Parkes Way for better city – lake connection would continue identifying engineering and cost options.

"When that work is completed, instead of moving to the next stage, I think what we are flagging, we are going to have to take a break on that one," Ms Gallagher said.

"We are not removing money from the economy, but we have a change in priority. In terms of City to Lake as an investment opportunity, we need to continue with that, because both Andrew (Deputy Chief Minister Barr) and I know from the different missions we have done, that is the single project that absolutely captures the imagination of investors."

Consultation with industry would be held up to the budget update in February, 2015.