The South Island Targa Rally could be facing a bill of up to $10,000, after damage to an Otago Peninsula road and barrier fence.
The Dunedin City Council said the rally cars had stripped a half metre-wide line of chipseal from the road.
Rally spokesman Ross McKay said organisers Targa New Zealand had a process in which any damage was paid for by the organisation, or the person who did the damage.
''There's already a longstanding and successful process in place to deal with things like that,'' Mr McKay said.
Council transportation policy engineer Jon Visser said roading maintenance engineers had inspected the road, and estimated about 300m had been affected over a stretch of about 1.7km near Portobello.
There was also some minor damage to a metal safety barrier next to the road.
A contractor had installed warning signs to ensure the safety of the public, and the road was swept early on Friday to remove any loose material.
It would be resealed ''at the earliest opportunity'', to avoid water damage.
The council had raised the issue with the rally organisers and would provide quotes for repair.
The rally could also seek its own quotes.
''The DCC expects that the rally organiser will bear the full costs of any remedial works to the satisfaction of the council.''
The cost of the road damage was estimated to be about $5000 and the barrier damage up to $5000. Mr McKay said
Targa organisers would discuss the issue with the council.
The event ended in Queenstown on Saturday.
