Dunedin City Council Transport Department had since 1964 had only one thought in mind - get rid of the trolleybuses. The first route closed on 1 September 1967 and by 13 July 1973 all but four routes of the eighteen routes had closed. The trolleybus fleet had shrunk from 79 in 1962 to a mere 17 in 1974. Between 1965 and 1975 the Council, through its transport General Managers maintained that "we would replace them with new trolleybuses, but could not obtain new trolleybuses or parts or overhead equipment and that the last trolleybuses were built in 1958", the main reasons the planned four extensions between 1962 and 1965 were not built.  They failed to tell the public that certain parts of their (Leyland) diesel buses would fit the vital parts of trolleybuses; but being a"strict British Leyland" customer since the 1930s it really  meant its supplier was no longer making them; no Councillors made enquires, no members of the public, despite a large "save the trolleybus" campaign since 1969 made enquiries; it failed to mention that they had twenty miles of overhead still on their delivery drums; that it had ten spare traction motors; that it had Ohio Brass equipment still in their boxes all in storage at its former McBride Depot. They were, however, quick to point out that trolleybus system were closing in quick succession overseas due to "no trolleybuses being built", using the British systems as examples. By 1974 the campaign was running out of steam.

Unknown (at the time) forces were to help the system to survive 32 years. In 1975 a new campaign "Retain our Trolleybuses" (ROT) when it was announced that the system was to close late in 1975. Plans were put in place to close the system. Its first closure was in 1975, but the fuel crisis in 1975 reopened the system a week later. By 1977 a new council began to listen when ROT supplied manufactures names and photos to the local community papers. With the information rebutting Councils arguments, they moved fast and quickly moved to close the system by June 1977. It second planned closure in 1977 did not happen as the Ministry of Works, who were building a new motorway entrance into the city demanded the City close it in February thereby save the MOW thousands of dollars in relocating the system. The new mayor-elect, Mr Cliff Skeggs, said ".....no one but the City Council will make the decision on the future of trolleybuses in Dunedin, and promptly announced it would keep going indefinitely".

Elsewhere in the world, the remaining trolleybus manufacturers were fighting for sales and New Zealand was no different.....

1977 Proposal
In mid 1977, at the height of the trolleybus campaign Skoda Motors New Zealand Reps, desperate to expand its foothold in Australasia approached the Dunedin City Transport Department. They offered a 100-trolleybus fleet along with a thirteen route city system and a two route suburban system. Under the deal, worth between $NZ14 and $NZ16 million,  Skoda would supply the buses, Type 9Tr trolleybuses, and overhead free of charge for ten years, then DCCT would purchase the system at a cost of $4.5 million ($450,000 a year). In return, DCCT would make available to Skoda the system for demonstration to other operators within the lower Pacific Area, namely New Zealand, Australia and South-East Asia, plus the possibility on America.

The routes proposed were the retention of the present Exchange to Opoho via George Street; Exchange to Normanby; Exchange to Shiel Hill; Exchange to St Clair; plus reintroducing trolleybuses to Exchange to Maori Hill via Belgrave Crescent; Exchange to Balaclava; Octagon to Halfway Bush via Kirkland Hill;  with reintroducing with extensions Exchange to Gardens extension to Pinehill; Exchange to St Kilda extension to Bay Cemetery; Octagon to Bradford extension to Brockville; Exchange to Caversham via South Road extension to Lookout Point; Octagon to Kirkland Hill via Wakari; Exchange to Corstophine via Hillside Road; plus interurban services to Fairfield via Green Island; and Port Chalmers.

The offer was accepted in principle subject to Government approval. The Government turned down the proposal under its anti-Communist boycott dealings.

Following the Council announced that as "it can not obtain new trolleybuses it has no choice to close the system as the system is 28 years old and beginning to wear out. It finally closed 6 July 1979. Meanwhile, up north Wellington had called for tenders for new trolleybuses. The Council announced a week after closure that it would re-open the system "subject" to Wellingtons new trolleybus proposals. The trolleybuses, placed in storage at McBride Street depot were renovated and repainted; the "don't have spare overhead equipment" became "we found some new overhead equipment" and the overhead was upgraded. It reopened 23 September 1979.

1980 Proposal
Following Wellington placing a 68-trolleybus order with Volvo in 1979, and Auckland adding to that original order in 1980, the Dunedin City Transport had meet to discuss adding to the order with a tender for some 25 trolleybuses and an additional 2 new routes. While documents were being drawn up Auckland withdrew from their contract. They did put in an offer for the Auckland trolleybuses, but Wellington put in a slightly higher offer. Skoda made a new offer to the City involving 30 trolleybuses, this time Type 14Tr, plus three additional routes at a cost of  about $NZ7 million.

The routes proposed were the present Exchange to Opoho via George Street; Exchange to Normanby; Exchange to Shiel Hill; Exchange to St Clair; plus Octagon to Halfway Bush via Kirkland Hill; Exchange to St Kilda extension to Bay Cemetery; Octagon to Bradford extension to Brockville.

The 1980 proposal were dropped at the February 1982 Council meeting when the council out of the blue announced the system would close on 31 March 1982. Skoda as yet have not entered the Australasia bus market.