Mr Rees said because the commission had uncovered the goings-on at Wollongong it showed NSW was able to deal with corruption.

"As regrettable and as tawdry as that whole incident was, today's release of that report by the ICAC demonstrates we are a corruption resistant state and where it does exist, it does get rooted out," Mr Rees said.

He took umbrage when asked about the links between the Finance Minister, Joe Tripodi, and the Transport Minister, David Campbell, with the former Wollongong council officer Joe Scimone, who was found by the commission to have engaged in corrupt conduct.

Mr Campbell has described Mr Scimone as a former friend of 30 years' standing.

Of Mr Campbell, Mr Rees said: "This gentleman is as honest as the day is long and he's the sort of bloke that if he took a paper clip home accidentally, he'd bring two back the next day."

Mr Rees was asked if Mr Tripodi, a former close friend of Mr Scimone, and Wollongong MP Noreen Hay, who has admitted friendships and conversations with developers named adversely in the report, were "as honest as the day is long". "Yes I believe they are," he said.

Mr Rees said "ICAC is one of the best institutions we have in NSW". He would not comment on whether he would increase its funding given cuts by government in recent years.

The NSW Opposition Leader, Barry O'Farrell, said the report highlighted the Government's failure to "appropriately monitor the council". "If the State Labor Government had been acting in the public interest, it would have blown the whistle on this corruption a long time ago," he said.

Mr Campbell, a former lord mayor of Wollongong, strongly denied any knowledge of corruption. "Those who have done the wrong [thing] should have their backside kicked from here to kingdom come," he said.