FREMANTLE’S decision to cancel its Australia Day fireworks for a more culturally sensitive approach is “likely to cause more division”, indigenous Labor MP Ben Wyatt says.

Council’s decision on Wednesday night divided opinions across the nation on Thursday on social media.

Labor’s Treasury spokesman took to Twitter on Thursday night to claim City of Fremantle’s controversial decision would do nothing for reconciliation.

“The (relationship) between Aboriginal people and Aust Day is profound. Cancelling fireworks a facile response and likely to cause more division,” he said.

“Cancelling popular events in the name of reconciliation does not advance the cause.

“If its because of cost, then call it cost.”

But Fremantle Mayor Brad Pettitt was quick to respond, saying the council’s decision was all about inclusion, not cost saving.

“Ben. Agree this conversation should head towards inclusion not division but it’s a conversation elders in Freo want us to have,” he said.

“Just to be clear, this is not as all about cost saving. All of fireworks budget will go towards new more inclusive events.”

Fremantle’s Chamber of Commerce says it is completely unimpressed by the council’s decision to cancel the Australia Day fireworks event, saying it will hurt local businesses.

The chamber’s chief executive Olwyn Williams said it opposed the council’s decision and was disappointed the business community was not consulted.

“They failed to recognise the economic impact of this event to our local business community, our regional business community, given that it impacts on the hospitality and marine industries,” she said.

The event attracts crowds of 50,000 to Fremantle, which Ms Williams said was much needed.

Describing the fireworks as magical, she said it was created as a safe family alternative to the city event, and it will take years before a new activity will gain traction.

“It will take a decade to get that kind of mass attraction for what is a community event, basically they have just stepped back a decade,” she said.

Fremantle council voted 10:1 to cancel the fireworks display, due to Australia Day not being a celebration for the indigenous community, for whom it was a day of sadness and dispossession.