A NEW car park that cost taxpayers £6.5million is being shunned after a rival shopping centre facility cut its prices.

Council leader Kate Hollern said the situation at the Feilden Street multi-storey was 'crazy', warning: "We are losing income".

Just 120 motorists are using the 550-space facility across the day.

Lancashire Telegraph surveys found between 34 and 75 cars there at any one time.

Critics said drivers were shunning the car park as it was more expensive than the Mall.

The shopping centre, which is 12 per cent owned by the council, dropped its prices in January, three months before the Feilden Street site opened, meaning it is up to 50 per cent cheaper.

Mall bosses said they had not done this because of the rival car park, but due to feedback from shoppers.

The Feilden Street car park was described as a solution to town centre parking problems when it opened.

It cost £6.5million - more than the £4million worth of cuts being made by the council following government funding cutbacks.

A one-hour stay in the Feilden Street car park costs £1.50, compared to £1 at the Mall.

The shopping centre's rates are consistently cheaper, with more than six hours costing £8 rather than £10.

Labour council leader Coun Kate Hollern said the situation was really ‘winding me up', and has not ruled out putting the price down in Feilden Street in a bid to attract more custom.

She said: "£6million and it's standing empty. It's crazy.”

Her regeneration chief Dave Harling said it would be filled by striking deals with local businesses to fill blocks of spaces as well as catering for visitors to King George's Hall.

Coun Tony Melia, who was lead member for regeneration under the council's former administration, said the Mall had dropped its prices when the council formally advertised rates.