THE State Government needs to spend more on rehabilitation programs for young offenders to help end a cycle of crime in areas such as the Tilligerry Peninsula.

The comment comes from the NSW Shadow Attorney General Greg Smith after he attended a meeting called by Port Stephens MP Craig Baumann to hear residents' concerns about crime on the peninsula.

'The stories Tilligerry residents are telling us about crimes being committed by the same people who seem to be ignored by the justice system are concerning," M rt Smiths said.

He said while the Opposition believed punishment must fit the crime there needed to be more emphasis on rehabilitation programs to give offenders a better chance of going straight once released.

"Rehabilitat ion is cheaper than the cost of building more prisons and far more effective," he said.

Mr Baumann said residents were fed up and a broader approach to the problem was needed.