New South Wales Premier Morris Iemma says the laws dealing with illegal brothels are currently being reviewed by the Government.

The State Opposition says a number of councils across Sydney have paid thousand of dollars to private investigators to have sex with prostitutes, so they can gather enough evidence to shut down brothels.

Willoughby Councillor, Trevor Morgan, says councils have no choice but to use the private investigators.

"If you're going to close these type of establishments you have to take this action to do it," he said.

The Opposition says it has twice tried to introduce laws which would give councils more powers, but the Government voted against the changes on both occasions.

Mr Iemma now says he is looking again at the relevant legislation.

"We have been working to review these laws and a proposal from the Local Government Association to ease the burden on councils, so that they can crackdown on these operations, is something the Government would consider," he said

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