New inquiry to probe Hunter projects

An inquiry will investigate controversial planning decisions in the NSW Hunter region amid allegations Liberal MPs received illegal donations from developers.

The newly formed parliamentary inquiry will examine contentious projects in Newcastle and the Hunter, such as the Newcastle Urban Renewal Strategy, the Whitebridge housing development and the truncation of the Newcastle rail line.

"People across the state have been following the trail of developer money, scandal and lies that has engulfed Newcastle and the Hunter in the past months," Greens MP David Shoebridge, who authored the motion, said.

"Now we can look into what really happened behind closed doors."

Two Independent Commission Against Corruption (ICAC) inquiries have so far relegated 10 Liberal MPs to the crossbenches and forced former Newcastle MP Tim Owen and Charlestown MP Andrew Cornwell to quit state parliament.

Both have admitted to receiving thousands of dollars from Newcastle developer and former mayor Jeff McCloy before the 2011 NSW election.

NSW political parties and MPs have been forbidden from receiving donations from developers since 2009.

The committee will report back to parliament before the March election.