Ratepayers could have to pay significantly higher rates if the New Zealand Transport Agency changes the way it subsidises local roads.
That warning came from Waitaki District Council chief executive Michael Ross during a council meeting this week which considered his report on potential changes by the agency.
One is a review on its Financial Assistance Rate (subsidy).
''It is of concern particularly to rurally focused councils such as ourselves that at the very time we are facing increased demands on our roading network because of more intensive agriculture, the NZTA is proposing to reduce the amount of road subsidy available for our council,'' he said.
This seemed contrary to Government policy wanting to encourage and facilitate economic development wherever possible.
Research on road usage showed about 1.3 million to 1.8 million km/tonnes was carried on local roads for every 1 million km/tonnes on state highways.
That showed the bulk of export dollars was being carried on local roads. In comparison, while Auckland said it generated significant gross domestic product, a lot of that was being used within the city and did not contribute to the country's overseas income.
The Waitaki council had increased its expenditure on roading because of development in its rural areas.
The proposed subsidy changes could have an adverse effect on Waitaki's roading budget.
''It will mean either a reduction in level of service [standards] or a significant increase in rates to keep the road budget at a similar level to what it currently is,'' Mr Ross said.
