John Donahoo and Ron Smith had applied to Port Stephens Council for public access to talk in opposition to a development application for a sawmill on Ferodale Road at Medowie.

The applicants, who cite noise, dust and vermin infestation as reasons for their objections, were denied access by the mayor, who has sole discretion on such applications.

In a report tabled to the July 28 meeting, it was revealed that the sawmill applicant had been operating on the site without consent.

"The applicant proposes log processing works on rural residential lot ... conditions limiting hours of operation, use of dust suppression, landscaping, vermin control, regular site maintenance, compliance with noise standards and alterations to improve vehicular access are to be put in place," development assessment manager Mathew Brown's report stated.

A furious Mr Donahoo said he was concerned that the mayor could gag two ratepayers and deny them an opportunity to address the council simply because they opposed a development application.

"It seems that freedom of speech is being denied in Port Stephens, and we have been given no reason," Mr Donahoo said.

Mr Smith said he was angry and disappointed.

"I believe it is unfair that someone can operate a business without the proper council approvals," Mr Smith said.

"For me this is a legal issue."

Mayor MacKenzie said this was not the first time he had denied public access.

"I believe the applicant in this case has been politically harassed and I believe that any public access could be a form of harassment," he said.

Councillors were expected to approve the DA for log processing works on the Medowie property subject to a number of conditions.