Guernsey's Traffic Committee has suffered a setback in the States. Deputies voted against putting in place a charge of 15 pence an hour in St Peter Port, but refused to throw out the basic concept of paid parking.
The recommended rate was defeated by 30 votes to 20.
Traffic Committee President Deputy Pat Mellor said earlier that the whole traffic strategy would be put in jeopardy without paid parking and that revenue raised would be essential to subsidising bus services.
But Deputy Sam Maindonald said the paid parking scheme may not work as part of the traffic strategy in the long term.
She said: "The strategy that was approved in March was to reduce the level of car usage by promoting more responsible use of the car.
"It makes no sense to me, therefore, that we are seeking to rely so heavily on any income that we might get from charging for parking in order to fund alternative schemes.
"If the strategy is working correctly that income will reduce over time as fewer people choose to drive their cars."