Shoalhaven City Council will not support the installation of traffic lights at an intersection where there have been four accidents involving pedestrians.
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The traffic lights were proposed for the Kinghorne and Moss Street intersection, and would have resulted in the loss of 20 car parks.
Business owner Pip de Pulford presented a petition against the proposed lights to the council at their July 30 meeting.
"I don't believe the economic and social impact [of the removal of parking] has been studied," he said.
"It's going to hit us very hard, and other businesses in the street."
A spokesperson from Moss Street Medical Practice submitted an email supporting Mr de Pulford.
"Our patients, many who are elderly or unwell will struggle to find parks close to our practice," she wrote.
"Please reconsider this parking proposal."
Councillor Watson said he "didn't understand why" the council had decided to put the traffic lights in in the first place, which would have been paid for by NSW Government Black Spot funding.
"You can go to almost any intersection in Nowra and find a similar number of accidents," he said.
Cr Watson amended the motion to indicate the council would not continue with the installation of the traffic lights.
Mayor Amanda Findley was the only councillor to vote against the amendment.
"We're in a process, and I think by indicating we don't support it is disingenuous to the work we've already done with the community," she said.