Wellington Shire Council this week voted to discontinue a laneway connecting Johnson and Little Johnson Sts.

Council had already approved the Woolworths development on the site, but that was dependant on the discontinuance of the lane.

While the councillors agreed to close the laneway, concerns were raised in how council would sell the land to adjoining landowners.

Cr Leo O'Brien said council should dispose of the land in a transparent manner.

"Everyone should have the opportunity to buy the land,'' he said.

Developer Astson had offered council $250,000 for the site so it could build on it while retaining a walkway.

Ian Dietrich from Astson said council had showed favouritism towards Woolworths, in ignoring its offer for the laneway.

"We consider this site as a very focal position, right in the middle of the Maffra township,'' he said.

Representing Ritchies, Rob Jolley said the company was not objecting to the discontinuance on the grounds of increased competition, rather because it was seen as a poor planning decision.

"The fact that Ritchies trades under fierce competition every day in many centres, for instance in your shire in Sale, and prosper, seems to skip the minds of the critics,'' he told council.

"It has been Ritchies' view to ensure a properly functioning CBD in Maffra, and the laneway should remain open or at least the circulation through the laneway remain functioning.''

A pedestrian count taken over two months found that an average 40 people used the laneway a day.

Mr Jolley said more people would use the laneway if it was enhanced.

Ritchies had offered to tend to the laneway and make it safer for pedestrians.

"The capacity to main the link between Johnson St and Little Johnson St is imperative,'' he said.

Mr Jolley wanted an independent analysis of the benefits of Woolworths in Maffra, saying claims that it would lead to increase jobs and investment and lower prices for consumers could be supported.