Alderman Annette Waddle was praised for reinvigorating debate on the languishing icon but her motion to sell it was defeated 11 to one at yesterday's Launceston City Council meeting.

Alderman Ted Sands criticised the notion of handing over the 1830s building to a private developer.

``It's criminally negligent and liable in my view,'' he said.

``I can't support the sale of it because I can just see the big golden arches sitting on top of it.''

The debate shifted to what council general manager Robert Dobrzynski described as ``the great, under-utilised'' Civic Square.

``In considering Macquarie House in isolation, council runs a probably unacceptable level of risk that we're going to get it wrong no matter what we do,'' he said.

He said the council should create a vision for the area, then consider how Macquarie House should be used.

Alderman Hugh Mckenzie warned against inertia on the project.

``We have lots of heritage projects. The thing that frustrates me and probably a lot of other people is the time we take,' he said.

``Let's put these plans out.''

Deputy Mayor Jeremy Ball said it would be premature to sell the building given the council's draft tourism plan urged Launceston to capitalise on its history.

Alderman Waddle defended her motion, saying the private sector was best placed to manage the building.

``It will cost council over $1 million to make it accessible and redevelop it, but what for? Do we leave an empty shell for another decade or more?'' she said.

Mayor Albert van Zetten reiterated his desire to find a purpose for Macquarie House during his two-year term.

Launceston heritage campaigner Gus Green spoke against the motion and said a looming federal election might be a funding opportunity.