Tenterfield School of Arts to be shut down without National Trust input

The Sir Henry Parkes Memorial School of Arts holds the honour as the first museum included on the National Trust register but financial woes have forced councillors to reconsider its value.

The heritage building in the NSW town of Tenterfield features a museum, theatre and a cinema and is expected to drain shire coffers by about $320,000 this year.

The site was witness to Australian history when Premier Sir Henry Parkes made his famed 1889 address.

The speech is considered to be the start of the federation process in Australia that led to the formation of the Commonwealth in 1901.

"The great question which we have to consider is, whether the time has not now arisen for the creation on this Australian continent of an Australian government and an Australian parliament," he said.

"Surely what the Americans have done by war, Australians can bring about in peace."

Despite its heritage, the museum is now at risk as the Tenterfield Shire tackles dwindling finances.

About 15 kilometres from the Queensland border, the town has suffered extensively from black summer bushfires.

In April, councillors voted to transfer the building to the National Trust so it could pick up the operating expenses. Councillors then voted on June 30 to close its doors if the Trust didn't take full ownership by the end of July.

But just nine days from the building's closure, the board hasn't made a move on the handback.

National Trust NSW CEO Debbie Mills said they'd consider the future for the Tenterfield School of Arts at its next meeting in August.

"There are complex practical, legal and operation areas that need to be looked at.

"The National Trust is a not-for-profit charity, with no recurrent government funding and a small number of paid staff supported by volunteers," she said.

"Currently there are no National Trust staff based in Tenterfield, with the majority of our staff over 600km away."

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Ms Mills said they would work with the council to help find a solution in a timely but thorough way.

"Council maintains the responsibility for the maintenance and care of the museum and its contents under the lease agreement," she said.

"Sir Henry Parkes National School of Arts in Tenterfield is of national significance. It's important that local, state and federal governments work together to ensure its conservation for generations to come," Ms Mills said.

Tenterfield council was contacted for comment.