The community group has welcomed a joint federal parliamentary inquiry into the National Capital Authority and has urged Home Affairs Minister Bob Debus to follow the recommendation put forward by the committee to abandon development of the precinct.

Friends of the Albert Hall formed last year to oppose the proposed development in the precinct by the authority, which they say would have allowed for the ''absorption'' of the hall by the Hyatt Hotel.

Under the authority's original proposal, Flynn Place would have been removed and Commonwealth Avenue would have had more two- to four-storey buildings, as well as an eight-storey building.

However, Friends is not completely opposed to development. Vice-president Lenore Coltheart said a low, small building behind Albert Hall could be used to cater for events.

''Events held in the hall could actually be associated with a connected building that is maybe a boutique brewery, maybe a great little wine bar, which would be a terrific asset to the area and suit perfectly the uses that Albert Hall traditionally had,'' she said.

''There's an assumption that somehow there's a necessary conflict between a commercial operation and a heritage building.

''You know, it's the 21st century and we see plenty of examples in Australia as well as internationally of very successful adaptive reuse of heritage buildings.''

She said the ACT Government was sitting on a ''money-making gem''.

''It's a tremendous opportunity to make something of this capital asset,'' she said.

Ms Coltheart said she would like to see the hall used for commercial ventures as well as by the community.

The ACT Government has committed $2.793million to the restoration of the hall, and the Federal Government $500,000.

Friends of the Albert Hall members Christine Murphy and Martin Gans, also from the Bush Dancers Display Group, have danced in the hall a few times and love it. ''It's fantastic, a huge thrill,'' Mr Gans said.

''It's got a great floor, it's got room, atmosphere and great acoustics.''

Ms Murphy agrees that a good floor is important. When you're dancing you've got to have the right floor underneath you. It's a well-sprung floor so much easier on your feet. And you notice the difference if you go to other places ...''

Mr Gans and Ms Murphy are both happy that the precinct will not be developed.

''There are other venues, but not as good as Albert Hall, so it would have been a real loss,'' Mr Gans said.