The architect of the Federal Government's $300 million Regional and Local Community Infrastructure Fund yesterday gave assurances the Illawarra would not be disadvantaged in the future because of council sackings.

"The fact that Wollongong and Shellharbour councils have clearly benefited through the program today is evidence of that," Minister for Infrastructure, Transport, Regional Development and Local Government Anthony Albanese said.

Speaking in Parliament House's Great Hall during the history-making local government summit, Mr Albanese, who will also play a key role in any decision to rebirth the mothballed Maldon-Dombarton freight rail link, told the Mercury: "I want to see local economies in the Illawarra and elsewhere stimulated and jobs created.

"It obviously would be preferable if there were elected mayors from Wollongong and Shellharbour here representing their communities.

"But those communities have been well represented by Sharon Bird and Jennie George on this occasion."

Mr Albanese rejected criticisms of his refusal to allow administrators from Wollongong and Shellharbour to participate in yesterday's ground-breaking summit.

"It is the case that it would have been unreasonable in any policy discussion for an unelected, appointed administrator to come along to today's meeting," he said.

Former Shellharbour councillor and now Cunningham MP Sharon Bird said the workshops resulted in a very productive day for the more than 400 mayors and federal ministers who participated.

"Workshops are an effective way for local government to raise its concerns with the Federal Government and for governments to tailor programs to best fit council needs," Ms Bird said.

She is hoping to meet Wollongong City Council representatives today to discuss details of the projects to be funded through its $2.15 million allocation.

Throsby MP Jennie George, who represented Shellharbour City Council, said the summit was the only example in the world where a national government was prepared to meet with local government.

"I think that shows the seriousness with which the Rudd government treats the role of local government," she said.

"This is a historic day in that relationship and one that will certainly benefit communities right across the Illawarra."

Chairwoman of the Southern Group of Councils, Kiama Mayor Sandra McCarthy, believed the Federal Government was committed to strengthening local government in the long term.

"For the first time I feel we are a genuine part of the overall demographic of government in Australia and it's long overdue," Councillor McCarthy said.