The Government estimated it would cost more than $5 million to earthquake-strengthen the Oamaru court, a claim described by Waitaki Mayor Alex Familton as "unbelievable" and prompting the Government to look again at its figures.
Mr Familton said the council was disappointed and surprised at the minister's cost estimate, which, if correct, would appear to prevent the reopening of the historic building. It estimated the work could be done for a 10th of the price.
The Government does not have figures on the level of public use of the Oamaru and Balclutha registry offices, which are to be cut under its proposal.
The Otago Daily Times requested the figures yesterday but was told by a Ministry of Justice spokesman it did not collect that data on a court-by-court basis.
Mr Familton said the ministry had signalled an intention to work with the council, local architects and Oamaru stone experts to assess the long-term options for the courthouse before a final decision in the new year.
Based on discussions with local engineers experienced in the restoration of buildings similar to the Oamaru courthouse, the council understood strengthening could be carried out for less than $500,000.
Courts Minister Chester Borrows said Waitaki MP Jacqui Dean had told him the $5 million-$6 million figure was questioned locally, and he told the Otago Daily Times he did not accept the figure either.
He contacted Mr Familton yesterday, stating he was prepared to check and reassess the multimillion-dollar estimate.
The ministry had met a local building contractor two weeks ago to discuss getting another estimate, which would be independently peer reviewed, he said.
Mr Familton said he and the community now awaited the reassessment, but would continue to fight to keep the courthouse if the ministry did not change its mind.
The Waitaki challenge follows confusion on Wednesday when court staff nationwide were briefed on the ministry's proposals but given access to a consultation document that suggested at least 96 jobs could go - a figure the ministry later admitted was wrong.
The actual figures could result in 170 positions disestablished, with a net loss of 68 jobs. Eleven of those jobs are from Oamaru south.
The minister also had bad news for Balclutha court users, stating remedial work was not being considered because of structural issues with the building, including subsidence. Mr Cadogan said he found the ministry's handling of the situation frustrating.
"Six months ago, we genuinely thought that as a group we had come up with a solution. Contempt was really the only thing we got back in the long run."
Mr Cadogan and court users had been working to find alternative venues to keep services in the town.
The measures announced on Wednesday came as part of Government efforts to modernise court operations.
Last week, the Ministry of Justice ran a test of "web-based video conferencing" between the principal Family Court judge and lawyers from Dunedin, Balclutha and Invercargill.
Oamaru lawyers were to have taken part.
Mr Borrows said he was disappointed by a "rather short-sighted view from the Oamaru bench".
Oamaru lawyer Phil Hope said he understood the date did not suit some lawyers.
Mr Borrows said the test showed some potential gains from increased use of video conferencing technology. The judge and lawyers all saw merits in this approach for some Family Court cases.
"The test highlighted some issues we need to work through to ensure the quality of service is consistently good enough to support a court hearing.
"While this is a small setback, I want to take the time now to make sure we get this right."
The ministry would be working on this, including investigating alternatives, and aimed to conduct a second test later this month, Mr Borrows said.
A larger six-month trial will take place in Family Court proceedings from Oamaru south, using real cases, later this year.