But SDLP Councillor Gerard Diver said the work of the Bogside Artists must be valued.
The Bogside Artists, whose murals attract visitors from around the world, complain about an historic lack of support.
BBC: Divided opinions as Derry prepares for City of Culture 2013
But over in the Bogside, outside the city's walls, there is a feeling of alienation by local artists.
BBC: Divided opinions as Derry prepares for City of Culture 2013
Tom Kelly said that the Bogside Artists' murals, despite attracting thousands of visitors, is not featured on the 2013 initiative's website.
BBC: Divided opinions as Derry prepares for City of Culture 2013
The nationalist Bogside Residents Group objected to the Orange Order's application to the Orangemen's proposed parade route through the Diamond area.
Derry man Damien Donaghy was shot in the leg about 15 minutes before the Parachute Regiment moved into the Bogside area of Derry.
Cllr Jimmy Carr made the comments on Facebook following a council debate over funding to the Bogside Artists for the restoration of murals.
Colonel Jackson said this forced the rioters back into the Bogside when the idea was to surround them and pick them up at army barriers.
The colonel told the inquiry that the former SDLP leader suggested he look in a certain place in the Bogside where there "may be some arms or explosives".
"The Bogside Artists have produced iconic work on the streets of Derry which is a huge tourism attraction for people who visit our city, " he said.
Mr Carlin also described "a sense of real fear" when he saw what he believed were paratroopers in buildings on the periphery of the Bogside area.
Mr Boyle also admitted spitting in a soldier's face during the march at the William Street barrier containing the march inside the Bogside and later throwing stones at troops.
The Saville Inquiry is investigating what happened on 30 January 1972 when paratroops opened fire on civilians at a civil rights march in the Bogside in Londonderry killing 13 people.
The inquiry, which is being held at the Guildhall in Londonderry, is investigating events when British paratroopers opened fire on a banned civil rights procession in the city's Bogside area in 1972, killing 14 people.
Residents of the Waterside are reported to believe the arrangements show a clear advantage to Catholics living in the Bogside, and say they will endure intimidation if they are forced to travel to see Mr Clinton with current arrangements.
He has also rejected suggestions that government policy was to send troops into the Bogside, that troops were authorised to shoot troublemakers to control crowds and that any blame for casualties was intended to be placed on to the organisers and the gunmen.
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