He said he was "astounded" to learn that permission had been given for the Newcastle Hotel to be flattened.

"Our city has a sad history of destroying buildings of significance," he said.

"There is a forest of historic markers indicating where fine old colonial and Edwardian buildings have been destroyed - churches, terrace houses, banks and even the town hall."

He said Port Augusta led Port Pirie in development.

"We have just closed our one and only restaurant and now we want to destroy the best looking building in Main Street to replace it with a car yard," he said.

"The Newcastle has one of the finest views in the state, looking across the water to the mountains.

"Surely it can be preserved until someone uses it well. When will we learn from history?"

He said the role of the council was to protect landmarks, not permit them to be destroyed.