Instead, Environment Canterbury (ECan) will discuss with district councils in its region the possibility of using a regional fuel tax, introduced by the Government last week, as a way to meet part of the local share of the $1.19 billion Canterbury Transport Implementation Plan.
ECan chairman Sir Kerry Burke said the earliest possible date to introduce a fuel tax would be July 1 next year, and it could only be a maximum of 2c a litre to start with.
ECan's region includes part of the Waitaki Valley in North Otago, which would be affected if a fuel tax was introduced.
The regional transport plan produced by ECan and district councils includes essential projects costing $410 million more than normal funding arrangements and subsidies would provide.
The Government agreed to fund half the difference - $205 million - but Canterbury needed to raise the other half.
"It would be very helpful if agreement can be reached between the region's councils on the best method of funding for the additional road and transport projects over the long term," he said.
Councils had agreed on the list of projects and now needed agreement on how to fund those.
"This is not a decision that will happen immediately or unilaterally, but it is important to recognise that the fuel tax is on the discussion table," he said.
Sir Kerry said that the $205 million contribution from the Government was a fantastic gift to transport in Canterbury, which the region now had to match dollar-for-dollar.