Councilor Jason Pauling put up a motion to note What's in a name: a brief history of some of the names past and present in and around the northern end of the Wallarah Peninsular cited the alleged origin of former island resident Herbert Heaney's nickname.

The book says Mr Heaney's "daily trek home after work with the whites of his eyes protruding from a coal blackened face must surely have resembled a 'coon', as in Racoon, from which his nickname alleged derived".

Council is preparing to consult the community about changing the island's name.

Cr Pauling said the issue had been "contentious" with "potential offence to be taken", but "history books do not appear to agree" the name was meant to be a racial slur.

Without debate, the motion was lost 8-4.

Councillor Kevin Baker said the "inflammatory" motion was "designed to seed discontent, doubt and misinformation".

"Council saw through this attempt to derail community consultation that was voted on unanimously by council and voted it down accordingly," he said.