"Weeding out a few people here and there will do nothing to get to the root of the problem," said Dr Anthony Ashbolt, senior lecturer in politics at the University of Wollongong.

"The Labor Party has committed itself to the top end of town in a number of ways and with development in particular," he said.

"It has been going on for years, getting in the way of proper urban planning and infrastructure decisions.

"When you start joining the dots there is a very strong argument for a royal commission."

He said the lingering scent of corruption was neither good for the Labor Party nor the electorate.

"At the moment there is a perception that politicians are above accountability," he said.

Dr Ashbolt said treatment of the the latest controversy involving Noreen Hay and the claim she interfered with a sensitive development proposal on behalf of developer Frank Vellar was unsatisfactory.

Her relationship came out with Mr Vellar in the Independent Commission Against Corruption inquiry into Wollongong council but ICAC Commissioner Jerrold Cripps, QC, maintains she is not classified as a person of interest in the inquiry.

He clarified that position last week by saying that did not necessarily "clear" her from any wrongdoing.

Dr Ashbolt said ICAC's response was not surprising because of its constraints.

"But that does not explain away the ethics of the situation ... it does not excuse Ms Hay's alleged behaviour."

He was referring to claims in a statutory declaration by former councillor Frank Gigliotti who said he was summoned to her office and asked to rescind a motion which blocked Frank Vellar's North Beach Bathers' Pavilion proposal.

Senior Labor stalwart Fay Campbell, who strongly supports a royal commission, said it was clear to everybody the air would remain rank until the corruption scandal was opened up.

"It is like a festering sore with far too many unanswered questions," Mrs Campbell said. "The whole thing needs to be broadened so that we don't have bodies like ICAC saying 'no, we can't go there'," she said.

"I know an inquiry needs to go much deeper than these claims against Noreen Hay," she said, refusing to elaborate.

Mrs Campbell said the electorate felt frustrated and angry.

"My phone has been running hot with people wanting to know what is going on," she said.

Ms Hay said she did not believe a royal commission was necessary as ICAC had all the same powers.