By KEVIN TAYLOR
Concern is growing at the rising cost of roadworks, as councils around the country are hit by high diesel and bitumen costs.
Roads will start deteriorating if councils cut spending, Local Government New Zealand has warned.
The Waikato District Council's road resealing costs have almost doubled - from $1.41 per sq m to $2.69 this year - and it may be forced to reduce its works programme.
Other councils around the country have also been hit by rising oil prices and the weak currency, with road resealing costs climbing by up to 40 per cent over last year.
Local Government New Zealand's infrastructure manager, John Hutchings, said he imagined the issue would be affecting all local bodies, but he did not have details.
He said that although it was not a crisis yet, the issue was worrying.
Road maintenance could be deferred for a year or so, but work should not be put off after that.
"If that high cost is sustained over a number of years, we would need to look at an alternative mechanism of funding," Mr Hutchings said.
"We could not allow the asset to deteriorate if there was year after year of that underfunding."
Southland district has 5000km of roads - the most of any council in the country - and it is facing a huge rise in roading costs.
Asset manager David Adamson said the council put out a $2 million resealing contract annually, the cost of which was expected to rise this year by between $400,000 and $700,000 because of oil prices.
That equated to an increase of between 20 and 35 per cent.
He said the increases would affect every council in the country.
Whangarei District Mayor Craig Brown said his council was on track to do all its roading work within budget, but he conceded that costs might rise and the roading programme could be cut.
Roads were the council's single largest cost, and Mr Brown said that if roading costs increased, rates might have to go up or maintenance be deferred.
Thames-Coromandel District Council faces a 30 to 40 per cent rise in resealing costs, and cuts are a possibility.
The Waikato District Council meets tomorrow to consider a scaled-back roading programme.
Deputy Prime Minister Jim Anderton, a fierce critic of oil company price rises, said he accepted that councils might have to do things differently and look at their budgets.
But he said that in the regions the increased costs for councils were balanced by the low dollar which was helping industries like agriculture and forestry.
He said things were looking up for provincial New Zealand.
A spokesman for Local Government Minister Sandra Lee referred the Herald to Mr Anderton for comment.
Transport Minister Mark Gosche could not be contacted.
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