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Nationals Senator John Williams has slammed the composition of the board, saying "there would be numerous qualified people living in regional Australia who could have been offered a place on the board to ensure there is a balanced view when projects are considered".

"I am sure the board members who have been appointed are well-qualified for the role, but it is very disappointing that those who live and work in rural Australia won’t have a voice," Sen Williams said.

"If governments continue to ignore rural Australia, facilities will remain under pressure, quality of life will be eroded and the exodus into the big cities will continue."

Notably some of his concerns have been echoed by former NSW Treasurer under the Iemma Labor government, Michael Costa, who writes in The Australian today that the presence of greenies on the board may result in the funds not being spent wisely.

Mr Costa has questioned the appointment to the board of Peter Newman, a former Carr government-appointed sustainability commissioner.

"Unfortunately, Newman's approach to urban planning and public transport provision is ideologically based," he writes.

"He wants the Federal Government to establish a carbon-neutral cities and regions fund by allocating all the money the Federal Government spends on State roads, the first home buyers scheme and State housing, as well as revenue saved from the elimination of tax incentives for private company vehicles.

"This money would be allocated to States if they could demonstrate they were delivering cities and urban subdisivisions based around carbon-neutral public transport.

"Regional and rural communities that are heavily dependent on Federal programs, such as road grants to maintain their extensive road networks, and with limited self generated funding opportunities would be in the forefront of opposition."