Labor hunts for votes in country NSW

Luke Foley has promised country NSW a fair go and the same level of services as those who live in the city, as Labor targets seats in the Hunter region.

But it was a different kind of targeting for Premier Mike Baird as he campaigned in the Blue Mountains on Wednesday, with graffiti artists spraying "not welcome" and male genitalia on his campaign bus.

Mr Foley kicked off Country Labor's campaign launch in Singleton, promising a $50 million upgrade to Muswellbrook Hospital.

He also announced a $17 million funding boost for the isolated patients travel and assistance scheme, and $65 million for a new primary school in Rutherford and future high school in Maitland.

"Country NSW deserves a fair go. Equal treatment. A proper share," Mr Foley told a gathering of about 200 party faithful at the Singleton Showgrounds.

"The same level of services, the same quality of infrastructure, the same standard of living, the same opportunities in life, as those who live in the city."

Graffiti artists appeared to shut the door on Mr Baird on Wednesday, after taking lewd licence with his bus as it was parked outside the Carrington Hotel in Katoomba.

"It is the city of arts," Mr Baird said to laughs at a campaign breakfast hosted by local MP Roza Sage.

"I'm not quite sure I like those arts."

The incident overshadowed a potential boost for the premier's plan to lease 49 per cent of the state's poles and wires.

The Grattan Institute released a report showing households in states with privatised electricity networks have faced smaller price rises in the past 20 years.

"I disagree," Mr Foley said.

"The evidence is clear, in South Australia the average electricity bill is $2388, in NSW $2101 and Victoria under private ownership has the highest retail margins - that's retail profits - in the country."

Labor hopes to pick up seats in the Hunter region, after the district was rocked by corruption allegations against sitting state MPs at the ICAC last year.

The government holds Swansea and Port Stephens by margins of 0.3 per cent and 14.7 per cent respectively, but sitting members Garry Edwards and Craig Baumann were disendorsed after being dragged into investigations by the corruption watchdog.

Mr Baumann is not standing at the 2015 election, and Mr Edwards is running as an independent.

Other seats being targeted are the Upper Hunter, a National Party bulwark, and Maitland. They are home to retiring conservatives George Souris and Robyn Parker.