UPDATE 5PM:Tauranga City councillors are going to be asked to approve a free parking trial for the CBD at next week's meeting.

A two hour free parking trial will if approved, begin in August and run for three months before its effects are evaluated.

The Tauranga trial is based on the ratepayer subsidised scheme in Rotorua which also offers the first two hours parking for free.

The news the council will consider a free parking trial was announced in front of council staff, Mainstreet members, Downtown Tauranga agency Tuskany, and Deputy mayor Kelvin Clout. Councillors will debate on the issue on Wednesday July 23.

Tauranga City Parking is not ratepayer funded, but the scheme if adopted, will result in a $375,000 to $400,000 loss in parking revenue.

The scheme's success will be judged on a number of surveys yet to be conducted, including foot traffic, customer counts and turnover comparisons.

CBD retailers have been for years urging the city council to at least trial free parking as a way of increasing foot traffic in a central business district.

Kelvin Clout says the proposal is backed up by a survey showing more than half of the participants want a parking change to bring them into town.

He says 54 per cent want parking to change or improve, compared with 15 per cent who want more or better shops.

'I'm personally in favour of it, but ten other elected members need to decide that as well.

'There's no such thing as free parking and the cost to council going forward has to be considered by elected members.”

There are other options besides the Mainstreet model for council to consider, but all have a financial impact, he says.

But the free parking trial will settle the argument.

'It will put this baby to bed. If free parking doesn't reel in the customers, then clearly that's not the problem,” says Kelvin.

Tuskany director Sally Cooke says the trial will give Tuscany data to see what impact free parking will have, and Mainstreet members will also have to work on promotional activities during the trail to encourage customers.

City council transportation manager Martin Parkes says during the 11am-2pm period central city parking is at 90-100 per cent capacity now, and that parking availability is also an issue.

The irony of successful free parking is it could put pressure on council to build a new car parking building at considerably cost to the ratepayer, says Kelvin.

'It's an important decision and we won't be taking it lightly. If it goes ahead it has to be on the basis it is successful over the longer term,” says Kelvin.

'How do you shut it down without collapsing the whole system?”

Kelvin says the announcement is good news and with the new Trustpower building in Durham Street, the university and the marine precinct, will attract people to the central business district, help the retailers and other commercial activities in the central business district.