In front of a packed council chamber, councillors voted in favour of requesting the government appoint a joint independent planning panel to decide on the fate of relocation from Latrobe Street to the Sunraisya Highway in Miners Rest.

The decision was met by outcry in the public gallery with residents shouting in protest.

It followed on from a heated protest outside the Town Hall spearheaded by more than 70 residents opposed to the relocation from Latrobe Street to the Sunraisya Highway in Miners Rest.

During a lengthy two hour debate councillors were inundated by 18 emotive public submissions from residents, Latrobe Street traders and developers rejecting the proposal.

Among them was Miners Rest resident Jason McGuinness who implored the council to abandon the concept.

Mr McGuinness said the development would ruin Miners Rest and omit unpleasant odours, dust and noise that could not be blocked out.

"I simply cannot get my head around why the council is pushing so hard to have this development put in the backyards of thousands to please a few," Mr McGuinness said.

"We want to see the council stop this development before it is too later and to work with the ratepayers in a more transparent way so we can find a solution."

His sentiment was echoed by fellow resident Neil Brassell called on the council to convene with neighbouring shires to find a suitable location.

"We demand that our representatives abandon this ridiculous proposal near housing anywhere," Mr Brassell said.

"The council needs to initiate talks with neighbouring shires to find a more suitable location on a highway, at green land site.. in a more rural setting."

Another resident accused the council of "condemning the township to a lifetime of stench and noise."

There were no submissions made in favour of the relocation.

To date, there have been 95 submissions received in response to the planning application for the livestock exchange. However, the relocation has long been deemed necessary by the council due to infrastructure limitations at the current site and for occupational health and safety, animal care and management, waste management and increasing traffic demands. 

Ballarat Mayor John Philips and councillors Des Hudson, Vicki Coltman, Peter Innes and Belinda Coates all voted in favour of moving ahead with the appointment on the independent panel. 

Cr Coltman said she understood the level of emotion in the chamber but the matter was a planning application and the council had a stringent process it needed to adhere to.

"If we do not follow planning laws set by state we end up in position where we are in breach of the law," Cr Coltman said. "In this case,  (a panel) it will allow everybody to have their point of view heard by an independent board before a decision is handed down  by the council."

Her view was supported by Cr Philips who said the final decision remained in the hands of the council.

"The panel will give us their recommendations and it is up to us as council to decide whether we take them on board in full, in part or not all," Cr Philips said.

Cr Hudson said a panel was the most responsible way forward and would allow for debate to continue.

 However, Councillors Amy Johnson, Jim Rinaldi and Samantha McIntosh all voted against the proposal.

 Cr Johnson said she believed the matter needs to be dealt with at a local government level.

"We are the planning authority for Ballarat," Cr Johnson said. "The independent panel  does not understand or know Ballarat or the people of Miners Rest."

Once the independent planning panel hearing is completed the council be given a list of recommendations on the way forward based on the evidence put forward by residents and stakeholders.