The news comes as councillors were set to adopt a report into the implementation of the webcasting at Tuesday's council meeting. Councillor Steve Tucker told the Examiner before Tuesday's meeting that when the item came up he would move a motion to see the service quashed, citing defamation and legal concerns as his motivation.

"The law has not caught up with technology, it's out there for the world to see," he said.

"Councillors don't have parliamentary privilege."

He said in addition to legal risks councillors were being intimidated by community groups who had told councillors they were being "watched". The Tomaree Ratepayers and Residents Association (TRRA) has labelled the move a "kick in the guts" for transparency.

"I don't think it [the council] is transparent enough as it is," Dick Appleby from the TRRA said.

"I think they [the councillors] are more worried about the public seeing them for who they really are. Nothing should be said there [the council meeting] that shouldn't be said on the public record."

Councillor Peter Kafer, who campaigned for the webcasting, agreed with the TRRA.

"There is no openness in local government in Port Stephens if they get rid of webcasting," he said.

Mr Appleby said the service offered those at the east end of the Port the opportunity to watch the meetings live without the hindrance of travelling almost an hour each way to attend them.

Meanwhile, Councillor Geoff Dingle said he knew people in Queensland and Sydney who had an interest in Port Stephens and accessed the archives. The webcast system cost almost $20,000 to install and $9900 annually to operate. In the nine months since the service has been operational, more than 550 people have logged on to the site to watch the archived broadcasts, with the number of live views ranging from 23 to 90 each meeting.