Cr Jenny Woods was one of five who initially sought to move a no-confidence motion in Mayor Bertrand Cadart, but on Tuesday night withdrew her signature forcing the cancellation of the meeting due to the lack of a majority.

Cr Woods said yesterday that in discussion with residents in the community, they were upset by the mayor's comments but were far more angered by the destruction of the privately owned mill.

"I felt it [the no-confidence motion] would be counterproductive and if people aren't happy with him, elections are in October and it's up to the people to determine what happens," Cr Woods said.

"We need to focus on the implications of what has happened with the chip mill."

She said Cr Cadart should not have said what he did but there was a bigger issue to deal with.

Cr Woods said she met Premier Will Hodgman earlier in the week to discuss the mill.

She said, as it was, the closure of the mill had seen a lack of access to the port - which is publicly owned, as well as Crown land, which sits between the port and mill.