Upper house Greens MP David Shoebridge pushed for the inquiry following revelations at recent Independent Commission Against Corruption (ICAC) hearings, which heard Hunter MPs took illegal donations from developers. 

Since the ICAC inquiries started, 10 state Liberal MPs have moved to the cross benches, while another two Hunter MPs have resigned and so too has the Newcastle lord mayor. 

The terms of reference for the inquiry include the assessment of the Newcastle Urban Renewal Strategy, the $23 million 87-lot townhouse development at Whitebridge, Newcastle East End developments, the decision to terminate the heavy rail line and construct light rail.

The committee will consist of Mr Shoebridge and Christian Democratic Party leader Fred Nile, as well as two members of the government and two members from the opposition. 

Newcastle Inner City Residents Alliance (NICRA) president Dr Geoff Evans said the recent revelations at ICAC had ‘‘shattered the trust of the people in our state and local governments’’ and ‘‘discredited major planning and development decisions’’.

“NICRA supports development and good planning in Newcastle and this inquiry is necessary after the years of corruption that has infected Newcastle and the Hunter,” Dr Evans said. 

“This inquiry is the first step to return transparency and accountability in government – and beginning of the community having a real say in the future of our city.”

The committee is expected to hold its first meeting in the next few days and is also expected to call for public submissions.