The assessment of the ALP's chances comes from the current Port Stephens ALP electoral council president, Fred McInerney, who said there appeared to be no local candidate to challenge Liberal MP Craig Baumann.

"At this stage we don't have anyone and we won't know much more until after they've got the Federal candidates sorted.

"Federal always comes first but I'll be putting in a request to head office asking them to parachute a celebrity in."

The news comes after Port Stephens East Ward councillor John Nell ruled himself out of running, citing his age and wanting to travel and spend time with his grand children. Mr McInerney said he believed Jim Arneman would stand at the Federal election and not nominate for Port Stephens. He conceeded that the Labor Party would have a difficult task to win the next State election.

"In the current climate the Labor Party isn't looking real flash," Mr McInerney said.

"But Port Stephens is certainly one of the most, if not the most, marginal seats in NSW with around 60 votes in the balance. And we don't see Craig Baumann as a good member or candidate either."