Warrnambool City councillors were told this week some applicants had been granted waivers on rules that previously applied where business sites were too small to accommodate the appropriate number of parking bays for staff.

Councillors Andrew Fawcett and Peter Hulin said they were concerned that waivers had been given while there was a shortage of CBD parking space.

"Numerous people have raised concerns with me that we are allowing this," Cr Hulin said.

"We used to have a system where people had to pay for car-parking spaces."

Their concerns were prompted by the latest report on planning permits which showed waivers had been granted for projects in Fairy and Lava streets.

Last month the council approved a new multi-storey office project for Koroit Street with reduced parking requirements.

City chief executive Bruce Anson said state government legislation changes about three years ago scrapped the council's previous fee laws.

"You now have to have a parking plan in place to justify the fee," he said.

"We will have to go through the process with the Make Your Mark on the City Heart study."

City growth director Bill Millard said he realised there was a gap in the system.

"Our city centre structure plan anticipates that," he said.

"It allows people to make a contribution to the parking scheme."

Mr Millard said the Fairy Street site was too small to provide on-site parking.

"On balance the permit was issued as the project provides renewal of an old building.

"Lava Street is an addition to the front of the site. It's a minor waiver."