Lismore City Council has made a "damning" submission ahead of an Upper House inquiry examining the Government’s misuse of grants.

The inquiry begins on Monday, September 21, and NSW Labor is demanding the Liberals and Nationals be held accountable for the “blatant attempt to buy marginal seats like Lismore through the distribution of grants before the 2019 State election”.

Lismore City Council’s submission stated: “These pre-election funding opportunities are often opaque and do not respond to the documented needs of a community or are not costed in accordance with the actual work that needs to be done.

“This results in a ‘gift’ of funds that results in implementation shortfalls.”

The Government’s misuse of taxpayer funds was highlighted in the Stronger Country Communities Fund (SCCF).

Shadow Minister for Local Government, Greg Warren said the SCCF saw $400 million handed out over three rounds – with $200 million distributed in round two, months prior to the 2019 NSW election.

“Over the course of three rounds, the Lismore electorate received 74 grants, with 41 announced in round two,” he said.

“More than 87% of grants went to Coalition-held seats in round 2, despite holding just over 60% of electorates eligible for the SCCF grants.

Mr Warren said the Government was elected to represent every community, not its own self-interest.

“The concerns of Lismore City Council are not only justified, they are echoed throughout the state,” he said.

“This government goes missing from communities for four years then reappears months before an election to announce grants and buy votes.

“It’s disgusting, disgraceful and deceitful.”

Lismore MP Janelle Saffin said the results from the 2019 state election “clearly show the people of Lismore did not fall for this government’s lies and false promises”.

“Lismore, like every community throughout NSW, needs a member who represents their best interests for all four years – not just months before an election,” she said.

“They didn’t get that with the Nationals but they certainly get that with NSW Labor.”