Newcastle Maitland and Cessnock councils have been invited to bid for $15million each in federal funding to boost affordable housing in their areas.
Prime Minister Julia Gillard listed the three cities yesterday among 46 others in Australia that can bid for $200million for infrastructure to support new housing.
Lake Macquarie and Port Stephens councils were snubbed.
Liberal Paterson MP Bob Baldwin, whose electorate covers Port Stephens, said he was disappointed his area had been left out.
Mr Baldwin said all councils should be allowed to apply for the money.
‘‘There’s an awful lot of taxpayers paying that $200million,’’ he said.
‘‘It’s day two of the campaign and it’s another failure in policy, narrowly focused and designed to do nothing more than get Julia Gillard re-elected.’’
Lake Macquarie mayor and MP Greg Piper said he would ask Labor’s Charlton MP Greg Combet why Lake Macquarie had been left off the list.
‘‘I’d be concerned how that could be, particularly when Lake Macquarie just ticked over 200,000 people,’’ Cr Piper, an independent, said.
Lake Macquarie was the Hunter’s most populated city and the state Labor government had earmarked it to take the ‘‘lion’s share’’ of the region’s population growth, Cr Piper said.
Ms Gillard said the money could be used to build parks, community centres, connecting roads and extensions to drains and sewerage pipes.
About 15 cities would receive up to $15million each, she said.
The initiative was aimed at relieving pressure on major centres, such as Brisbane and Sydney, to ‘‘ensure Australia can grow sustainably’’ and to improve housing supply.
The program’s money would come from ‘‘existing funding for housing’’.