He might have spent more than 25 working years there, but former prime minister Paul Keating is no fan of Canberra.

Launching a new book by historian John Hirst on the places that help shaped Australian democracy, the sharp-tongued Keating said: "Canberra is of its essence a great mistake".

"Living in motels in Canberra is no fun. Going to Chinese restaurants in Manuka, it's got its limitations," he continued.

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The former prime minister said he would be happy if Melbourne was Australia's capital, but nominated Sydney's Garden Island as the ideal location for Parliament House.

Paul Keating Credit:James Alcock

Mr Keating was joined at the launch, at Melbourne's Athenaeum Library, by former Liberal prime minister Malcolm Fraser.