The President of the Local Government Association, Cr Genia McCaffery, and the President of the Shires Association, Cr Col Sullivan OAM, gave evidence before the Commission in Sydney.

"The draft proposal that negotiated agreements with private property owners would be required before a property is listed for heritage conservation, could significantly undermine the nation's heritage assets."they said in a statement issued after the hearing. Cr McCaffery said "the proposal was unworkable if the conservation of heritage items depends only on negotiated agreements with individual owners."

"Local government works closely with the NSW Heritage Office and we question why the heritage conservation system operational in NSW, which has evolved over many years, should be subjected to such fundamental changes. "

"The NSW system of identifying and listing properties involves considerable community consultation, and strategies have been adopted to assist individuals in the entire process of heritage listing. For example, the State's Heritage Advisory Service provides free advice to individual owners," she said.

"Based on our experience - and there are more than 31,000 items on local government statutory lists in NSW - several of the Commission's recommendations would require substantial changes to the operation of local government's role in heritage planning and conservation," Cr McCaffery said.

The President of the Shires Association, Cr Col Sullivan OAM, said "heritage conservation consumed significant council resources, and total funding from the State and Australian governments was inadequate."

"Consideration should be given to granting councils more powers to enforce minimum standards of maintenance and repairs for items of local significance, and more resources to enforce standards. "

"Councils have limited avenues for raising revenues. While our Associations support the three-tiered system of government involvement in heritage conservation, the Commission's current proposals will undermine our joint efforts," Cr Sullivan said.