Argyll and Bute Council agreed to allow a fortnight of free car parking at its off-street car parks from December 11 to Christmas Eve - including Oban.
But an SNP amendment to extend that until January 3 failed when it was defeated 16 votes to 15.
Now questions have been asked about why only two of the eight councillors who represent Oban, Lorn and the Isles on Argyll and Bute Council, were prepared to support the New Year extension.
The issue came up at a virtual meeting of Oban Community Council attended by some of those councillors who voted down the proposal.
Councillor Kieron Green, an independent, explained he voted against due to a lack of information about the financial impact of the idea.
He said waiving charges at off-street council car parks would also hit income of on-street car parking and councillors were in the dark about the total cost to the council.
'I really just wish that it would have been raised earlier so that we would have had the financial details necessary to really be able to pass it,' said Councillor Green, who said despite his vote, he regarded it as a great idea.
Councillor Elaine Robertson said she would have 'loved' to have supported the amendment but could not for the same reasons.
Marri Molloy, chairwoman of Oban Community Council, said it was 'too late now' as the vote had already been taken.
Councillor Robertson explained that when councillors were faced with a financial decision with no supporting background information it put them in a 'very difficult' position.
'The disappointment was that it wasn't actually flagged up earlier and there wasn't more detail around it,' said councillor Robertson, also an independent.
However, councillor Roddy McCuish told the meeting that he voted in favour and councillors sometimes had to make 'brave' decisions.
He said car parking income was always low at the quietest time of the year and any cost would have hardly hit the public purse.
'It would have given something back to Oban who have been paying a vast amount in parking charges into the central pot for years,' said councillor McCuish, an independent on Argyll and Bute Council and its depute provost.
Councillor Jim Lynch, an SNP member, also supported the New Year extension.
If councillors had concerns about the costs involved, they should have called a recess so officers could have got the figures, he said.
'I think it was a meagre thing to offer and we're disappointed it didn't happen,' said Councillor Lynch, who conceded the amendment had been tabled late in the day having been raised at an SNP group meeting prior to the full council meeting taking place.
BID4Oban will foot the £2,000 bill to allow free car parking in off-street council car parks in the town from December 4-11.
With the free fortnight from Argyll and Bute Council, it means charges are waived at council-run car parks at Albany Street, Corran Halls one and two, North Pier, Lochavullin, Market Street and Tweedale Street.
Speaking at the community council meeting, Mr Spence said extending free parking into New Year could have proved an extra incentive for people from the surrounding area to visit Oban and use local businesses which had suffered in 2020.
'I would have to record my slight disappointment that we haven't gone for this option,' he said.
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