Port Fairy police Sergeant Dave Walkley said the 36-year-old man was driving south along Sackville Street with his four-year-old daughter as a rear passenger at 5.25pm on Christmas Day.

"As the man approached the roundabout at the intersection of Cox Street he has become distracted and collided with the centre bluestone light pole base," he said.

"The driver has then panicked and accelerated causing his vehicle to travel straight across the roundabout damaging the bluestone coping."

Sergeant Walkley said the impact had ripped the sump from his vehicle, causing a large oil spill at the intersection.

"Luckily the driver and his daughter avoided injury and no other vehicles or pedestrians were in the vicinity at the time," he said.

"Police happened to be patrolling the area at the time and came across the collision moments after it occurred."

CFA and Moyne Shire attended and assisted police with the clean up.

The intersection was closed for about two hours.

Sergeant Walkley said the male driver had been issued an infringement notice for careless driving with a penalty of $436 and three demerit points.

"This is an example of why drivers must give their full attention while driving at all times," he said.

"A moment's lapse in concentration can have significant consequences. It is just lucky that no one was injured as a result of this incident."

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