An email exchange between a spokeswoman for Millwood’s victim and a council representative shows aldermen entertained the idea at a closed meeting last week.

But the decision to allow the 71-year-old to keep the honour was “mutually decided”.

Between 1983 and 1989, Millwood sexually abused a boy – and after years of denial he pleaded guilty last month.

“It was decided that although council does certainly not condone the actions of the individual; the award is not being one attributable to the personal characteristics of the individual but rather to a building restoration work,” an email from a council employee read.

Millwood was bestowed the honour in 2009 after restoring a historic property on St John Street.

Spokeswoman for Millwood’s victim and Latrobe councillor Dayna Dennison said the decision not to rescind the prize was unacceptable.

She has started an online petition to have the decision overturned.

“Community organisations and institutions such as the Launceston City Council must bring themselves in line with community expectation,” she said 

“Launceston City Council and every alderman within it must take a leadership stance on this and withdraw John Millwood's 2009 Prestigious Heritage Prize as a symbolic gesture in support of victims of child abuse in our community.”

Cr Dennison compared Millwood’s clout in Launceston to that of pedophile celebrities Rolf Harris and Hey, Dad star Robert Hughes – who also used their celebrity to deflect similar allegations for years.

City of Launceston general manager Robert Dobrzynski said the council was “horrified and appalled” by Millwood’s actions, but said the prize had nothing to do with his character.

“Had the individual concerned received a significant individual award on the basis of his character or good works  — such as an Australia Day award or Key to the City — the council would be able to consider potential courses of action,” he said.

“The award was not, and is not, intended to honour the individual for his personal qualities, character or attributes, but rather a building of historic significance that he helped to restore."