THE condition of Newcastle's historic post office has deteriorated so badly that its very future is now in doubt.
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Infested with pigeons and rats, clouded in asbestos, extensively storm and water damaged and again housing squatters, it was once the city's architectural and heritage jewel but is now arguably its biggest shame and embarrassment.
State heritage minister Mark Speakman has called for a full report on the building's status from the Office of Environment and Heritage, which is expected to meet with the owners, Awabakal Local Aboriginal Land Council, this week.
The land council took possession of the building in January after a successful court ruling last year.
Asked if a sale was possible, Awabakal Local Aboriginal Land Council deputy chairman Richard Green said it would be a last resort.
"It's a landmark building and it's ideal for a museum and cultural centre."
The building has local and state heritage listing.
The Heritage Act imposes responsibilities on the owner to repair, secure and protect it.
The post office building was built between 1900 and 1903.
It was sold by the Howard government in 2002 to Sydney-based developer Sean Ngu for about $2 million. Mr Ngu unveiled plans for an upmarket bar. After the plan was rejected, the Labor state government purchased it for a rumoured $5 million in 2010.
In 2011, the Liberal state government rejected a claim on the site by the land council, which then appealed the ruling.