AUSTRALIA'S longest running skate boarding competition will be scaled back, after a large portion of its funds were reallocated following a rescission motion at the last Ballina Shire Council meeting.

Councillors agreed unanimously to reduce the funding for the 2015 Ballina Fair Go Skateboarding event to a $4000 in-kind donation.

A motion was also passed to reallocate the $10,000 sponsorship money to a skate park in Alstonville or Wollongbar.

Skateboarding Australia had run the event until September last year when they withdrew and Ownlife owner Richard Flude put up his hand to take on the December event.

In February, the council passed a motion to provide $10,000 in sponsorship for Ownlife to manage and coordinate Fair Go in 2015.

Mr Flude said despite the cuts to the skateboarding competition, the decision was still a win for the Ballina skateboarding community.

"Perhaps the cut might be a tad too excessive if they want to run it to the same capacity … but I think it's going to be more valuable to the Ballina community if they do more events over the year," he said.

"It shows the council is still looking after skateboarding.

"There's a huge board riding culture here, so I think it (the new skate park) will be embraced."

However, Mr Flude said a skateboarding competition run on $4000 was unlikely to attract competitors from as far afield as the Sunshine Coast and Port Macquarie.

Last year the event attracted a crowd of about 300 people with 71 participants.

A councillor comment attached to the rescission motion said: "Given the current fiscal environment and the fact that all other events in the Shire undergo rigorous comparison for finite funds, the allocation of a substantial sponsorship to a private company rather than a not for profit, for a competition which last year had a small number of entrants is inappropriate and would be far more beneficial being allocated towards the new skate park."

The rescission motion and reallocation of funds was voted for unanimously by councillors.