The speed limit across the Orange CBD would be cut from 50km/h to 40km/h under a plan to be considered by Orange City Council.
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A report to council said there had been eight crashes leading to injury in the CBD.
It is proposed the area bounded by Peisley, Hill, Byng and Kite streets, including Summer Street, would become a slow zone.
Council will seek the support of the Orange Business Chamber for the move before taking it to the state transport body Roads and Maritime Services to conduct a review.
It's excellent. We would fully endorse it.
- Ash Brown, president Orange Business Chamber
The speed limit reduction is part of the FutureCity plans for Orange.
"The ethos of the FutureCity design framework document is to improve pedestrian movements throughout the CBD," the report said.
"This is proposed to be facilitated by various means, but it is believed reducing the speed limit will assist in making the CBD more pedestrian-friendly.
"Studies show when reducing the impact speed of vehicles from 50km/h to 40km/h in a pedestrian/motor vehicle crash, the risk of having a pedestrian death is reduced from 60 per cent to 25 per cent."
Councillors will consider the plan on Tuesday night.
Business Chamber president Ash Brown said the chamber would back the plan.
"It's excellent. We would fully endorse it," he said. "I've been wanting it forever. If you look at Summer Street most cars are travelling at that speed or less.
"It will just stop any [poor] behaviour or speeding especially when children and families are trying to cross on busy days."
Mr Brown said reducing the speed limit would further increase the need for more parking in the CBD.
"I think council should be exploring more options for parking," he said.
"There always has been and will be a need for more parking."
He said council had a fund for parking and urged it to spend the money on creating more spaces.
Mr Brown said he did not believe the speed reduction would discourage people from coming to the centre of Orange.
"Most locals know to avoid the main street anyway," he said.
Mr Brown said visitors would look for parking spots on side streets or in car parks.
Council will seek the community's views on cutting the speed limit.
"As part of the review process council will also gauge community views on the proposal through the Orange Your Say site [council website] and other means and a report on the findings will be provided to Transport for NSW," the report said.
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