NSW Treasurer Mike Baird has indicated that the Hunter should not expect more money if the Port of Newcastle is leased for a higher than expected amount.
The Treasurer announced the plans to offer up the port at Newcastle for a 99-year lease in this year's state Budget.
The government has said it expects the lease to bring in at least $700 million.
Of that figure, Newcastle will receive $340 million to revamp the city centre and investigate the possibility of light rail.
This caused outrage in the Illawarra because, when the government announced the leasing of Port Kembla, it offered the region just $100 million to spend on new infrastructure.
Port Kembla was expected to bring in about $500 million but the 99-year lease ultimately went for $760 million.
Despite the better than expected return, Mr Baird declined to increase the initial $100 million offer.
When asked by the Illawarra Mercury whether Newcastle's share would increase if their port was leased for more money, a spokesman for Mr Baird said the city would still receive the $340 million.
"All remaining proceeds will be invested in the state's infrastructure fund - Restart NSW - to fund priority needs around NSW," the spokesman said.
"The fund directs investment in essential infrastructure such as transport, roads and hospitals, with 30 per cent reserved for projects in regional areas."
Mr Baird's spokesman said there was a chance that the Illawarra could benefit from the long-term leasing of the Newcastle port.
"Regarding the benefits for the Illawarra from the potential Port of Newcastle transaction, Infrastructure NSW is responsible for independently assessing proposals to make sure funds are being directed to where they are needed most, whether it be in the Illawarra or other parts of the state," he said.
Arthur Rorris, South Coast Labour Council secretary and opponent of the leasing of Port Kembla, said what happened if the Newcastle port went for more than expected didn't matter.
"I don't think it's an issue whether they get more or less from the sale, and then whether they get more or less than the $340 million, because they're already getting three times more than what we got," Mr Rorris said.
He said the $100 million the region was promised equated to just two years' of returns from the port of Port Kembla.
Mr Rorris said the Illawarra had a "significantly higher" unemployment rate and more disadvantaged people than the Hunter.
McClintock named for role
NSW Ports, which holds the long-term lease of Port Kembla, has appointed its chairman.
Paul McClintock is also a chairman of Myer Holdings and the Institute of Virology and served as a secretary to cabinet in the Howard government.
Mr McClintock will oversee both Port Kembla and Port Botany, which NSW Ports took charge of this year for 99 years.
‘‘NSW Ports operates two very significant infrastructure assets, which are critical to the economy of NSW, Australia’s largest state economy,’’ Mr McClintock said.
‘‘I am delighted to be its new chairman and look forward to working with our board and our employees to manage and develop these assets to support the growth of the state.’’