The view from the ''gods'' of Auckland's St James Theatre.

The fate of Auckland's historic St James Theatre could be in the Government's hands, according to the Labour party's heritage spokeswoman Jacinda Ardern.

Renovations of the 87-year-old Queen St building, which closed as a theatre in 2007 over safety concerns, are well underway alongside a 300-unit apartment development.

Major works are due to begin in March next year, but a shortage of funding still dogs the project, which has an estimated cost of between between $60 million and $70m.

"Auckland Council has partnered with Auckland Notable Properties Trust to develop a salvage plan and come to the party with $15m," Ardern said.

"But even with a generous contribution from the owners and others, there is still a funding shortfall.

"If the remaining funding needed for the restoration is not found, we risk the doors remaining closed and the theatre mothballed."

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Steve Bielby, director of the theatre's owner St James Holdings, said about $2m had been poured into basic renovation work to prove the theatre could and should be saved.

That money would be down the drain if the theatre was mothballed, but he was hopeful that would not happen.

"The conversations are happening and I'm pretty confident that we can at least in the short term get to a point where the building will still remain accessible to the public.

"It may not be the full gold level but it will be a really good, great, usable, functional space."

Ardern suggested there were options for the Government to assist, particularly funding pools for cultural infrastructure.

Auckland Central MP Nikki Kaye said she also supported the project and was arranging a meeting with Heritage Minister Maggie Barry to discuss it.

"I'm a big supporter of ensuring that the St James Theatre has the investment it needs as one of the true jewels of our city."

Ownership of the theatre was transferred on Friday to St James Holdings, whose majority shareholder is the Auckland Notable Properties Trust, the original proponents for the theatre's restoration.

The theatre was bought in 2014 and initial restoration support has come from Relianz Holdings, owned by the Li family who are building the adjacent St James apartment building.