ACT Chamber of Commerce and Industry chief executive Chris Peters said there had been a negative impact on businesses when paid parking was first rolled out in Canberra, but the business downturn was short-lived.

"When it was first introduced there was a backlash but people quickly got used to it," Mr Peters said.

Consumers adapted so well that the chamber led a campaign to lift the cost of parking last year. Mr Peters said motorists had forgotten about the price hike within a month.

"Business won't put up a four-storey car park if it is not commercially viable," he said.

"Higher parking costs will attract investors to provide more car parking."

Hunter Business Chamber chief executive Peter Shinnick said Newcastle had similar issues with a shortage of private car parks.

"The price has been so low that it hasn't been viable in the past for developers to open private car parks," Mr Shinnick said.

He said paid CBD parking had pushed commuters into suburban streets on the city fringe, prompting the council to expand paid parking zones.

But he said most workers and shoppers either accepted the need to pay for parking or were prepared to park for free up to 1km away.

"Business will always say they don't want paid parking," Mr Shinnick said.

"But otherwise there will be people who come and park all day outside their shops. We need some way to move them on. I think it works and is affordable."