Waimate Mayor John Coles fears that almost all of the town's business district could end up being demolished if the Government raises building standards to strengthen structures against possible damage from potential earthquakes.
Mr Coles said he had raised his concerns over the difficulty in achieving existing standards with local politicians. He said the Government needed to take a pragmatic approach to the situation.
"A main concern, and I don't think I am the only mayor to share that concern, is what's likely to come out of the commission of inquiry into the earthquake saga.
"We did some tests in our community, especially council buildings, and we're rather shocked that they're below the 33% of the building code, so we will have to address that as a council for a start."
Mr Coles said it was important over the coming years that governments took into account what the effects of losing earthquake-unstable buildings would be on local communities and businesses.
He said it would not surprise him "one bit" if as much as 80% of Waimate's business area was below the current 33% standard, and added that he had heard rumours the standard could rise to 69%, which would be "pretty hard to meet".
"If a high standard is expected then sorry, we're not going to be able to do it overnight.
"A whole lot of factors should be considered, not just the building code."
If new buildings had to be built, rents would have to rise, which many businesses could not afford to pay, he said.
Dunedin North MP and Labour revenue spokesman Dr David Clark visited Waimate on Tuesday to discuss Waimate's future economic prospects and shared the mayor's concerns.
"Buildings in the most affected areas need to be strengthened swiftly, however there also needs to be a balance between the work being carried out and the intensive capital cost, which could financially cripple local authorities in areas like Waimate."
Building and Construction Minister Maurice Williamson said a review of standards was under way, and any resulting safety standards and timeframes for implementation would be "realistic".
"This issue is being considered as part of the Government's policy review of the earthquake-prone buildings system. The review, led by the Ministry of Business, Innovation and Employment, aims to inform the Government's response to the findings of the Canterbury Earthquakes Royal Commission.
"An announcement of the review findings will be made in due course."
