A tent city in Sydney has triggered a stoush between state and local government.

Both levels of government say it is the other’s responsibility to move the group of homeless people and protesters from the front of the Reserve Bank in Martin Place.

New South Wales Premier Gladys Berejiklian said her Government had been prevented from intervening.

“Our staff have been down there 41 times,” she told Parliament.

“It concerns me that people who are sleeping in tents in Martin Place are refusing to get help, refusing to receive help and I frankly think that is unacceptable.”

The Premier said the local government should forcibly remove the camp and its people.

“I call on [Sydney Lord Mayor] Clover Moore to get rid of that tent city. It should not be there,” the Premier said.

“Anyone who wants to receive help in New South Wales will receive that and I call on her to act because that is the right thing to do.”

But Cr Moore says it is impossible.

“We don't have the power to move people,” she said.

“We have the power to move structures and make places safe. But we don't have the power to move people on.

“The police have the power to do that. We're not calling on the police to do that. But that's the reality.”

Social Housing Minister Pru Goward said the Lord Mayor’s stance was “disappointing”.

The Lord Mayor suggested vacant homes in the Sirius building should be opened up for the campers.

“The Government and the Premier are acting now because it's in their face,” she said.

“They have to walk by to go to Parliament. The [Reserve Bank] has to walk by to go into their premises.”