President of NILGA, Alderman Arnold Hatch, said: "Local councils have proven that they are willing and capable of playing an important role in dealing with these kinds of issues.
"Councils already promote good relations and encourage dispute resolution in their communities as well as dealing with practical issues such as bonfires.
"This report envisages a much more strategic role for councils in mediating on disputed parades and this role needs to be considered by councils during the consultative period.
"The report envisages that local councils will take responsibility for the mediation of parades. This proposal needs to be examined in detail before local councils could consider taking on this formal mediation role.
"While councils already play a key role in terms of civic leadership, it is essential that this new mediation role envisaged for councils would not exacerbate any existing unresolved tensions."
NILGA will now be examining the details of the proposals and consulting extensively with local councils prior to making a full response to the Parades' Review Body.