The driver failed to stop at a stop sign around 10am yesterday, causing another car to crash into the side of the vehicle.

The driver of the car towing the horse float then collided with the awning posts before crashing into a power pole next to the motel.

“In the collision the powerlines were severed. The power was isolated by Country Energy and there were partial disruptions to power throughout the day,” Mudgee Police inspector David Pearce said.

At 5pm yesterday evening power had not yet been restored to the affected buildings.

The road was closed to traffic for a short time and police, ambulance, fire and VRA personnel worked at the scene.

The driver of the car towing the horse float was taken to Gulgong Hospital with minor injuries.

Police were unable to confirm if the driver was a local.

The driver of the other car, a Gulgong resident, escaped without injuries.

Ten Dollar Town Motel manager Lindsay Swadling said he heard the accident happening.

“I was in the kitchen and I heard a bang, bang, bang as the vehicle was hitting the posts on the awning. Then I felt the building shake and the power went out when it hit the power pole,”

“People are pretty shaken up,” Mr Swadling said.

Speaking to the Guardian four hours after the incident yesterday, Mr Swadling said police, the VRA and firefighters were still cleaning up the mess.

Emergency services had to stabilise the awning at the front of the motel before they could remove the car.

Mr Swadling said the awning would come down at a later date.

The intersection at Mayne and Medley St, where the motel is located, has been a cause for residents’ concerns for a while.

“It’s a bad intersection, the stop sign needs to be enlarged and the stop sign ahead sign is covered by a tree,” Mr Swadling said.

Council failed to re-paint the white road markings at the stop sign after they refurbished the road on Thursday.

They returned around 3pm on Sunday afternoon to put the markings on the road.