But like all his Illawarra-based parliamentary colleagues, Mr McLeay paid tribute to outgoing premier Morris Iemma.

"He was a true friend of the Illawarra and understood its needs," Mr McLeay said.

Police Minister and Minister for the Illawarra David Campbell said Mr Iemma had left a lasting legacy in the Illawarra and pointed to his decision to allocate $15 million to the new medical research building at the University of Wollongong.

Mr Campbell said he did not believe the elevation of Nathan Rees to premier would have any major impact on the region, but warned the "economic vandalism" of the Opposition in defeating plans to privatise the state's power industry may well have some impact.

"But Nathan Rees will get on with the job of running this state for the people of this state and he has made it clear that only hard work on our part will help win the next election," he said.

One of the likely winners to emerge from the weekend's special caucus meeting, Minister for Tourism and Housing Matt Brown said he was "sad to see the Premier go".

"But on the other hand I am also really excited about the opportunities ahead under the leadership of Nathan Rees and Carmel Tebbutt."

Wollongong MP Noreen Hay said: "I have to say I am really sad to see Morris go because I thought he excelled as a premier and he always stood by me."

Shellharbour MP Lylea McMahon said she had a great deal of respect for Mr Iemma.

"He was there to support me when I needed it and he leaves a strong legacy, particularly in the area of mental health in Shellharbour," she said.

South Coast Labour Council secretary and vocal opponent of the privatisation of electricity, Arthur Rorris, said he hoped that Nathan Rees would steer MPs in the direction people expected of a Labor government.

"Morris Iemma and Michael Costa walked over a cliff in relation to this issue and it has been a very sad and sorry chapter in Labor's history," he said.