Mark Allan McKinnon, 61, said through his lawyer that he has packed up his belongings at his home, a caravan park in Glen Innes.

In Armidale Local Court on Tuesday, witnesses were asked questions about what McKinnon allegedly said to children on the day.

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McKinnon earlier pleaded not guilty to a charge of procuring a child under 14 for unlawful sexual activity. The maximum sentence for the offence is 15 years' jail.

The incident is alleged to have occurred on East Avenue in Glen Innes on January 26 at about 1.30pm. He was arrested by Glen Innes police at 2.50pm the same day, according to court documents.

Defence lawyer Frank Falcomata repeatedly pushed witnesses to admit they were fabricating the whole incident.

"What I'm saying to you is you made this up," he said at one point. He later asked a witness "have you ever made up any stories like this before?" The witness responded "this is the first time".

The Director of Public Prosecutions (DPP) lawyer later clarified the witness was not saying they had made up the story. "I've never lied about something this big," the witness said.

At another point he asked if one of the witnesses had heard of stranger danger and why they didn't follow the advice.

Mr Falcomata later asked one witness if another has ever lied or been in trouble.

The witness responded saying "I know he wouldn't lie to me or anyone else".

But Magistrate Michael Holmes asked: "How could he answer that? How could he say ever?"

The case continues, and McKinnon will return to court on October 2. He is on bail.