Kevin Rudd's spokeswoman said the Federal Government was ``disappointed'' with the state mini-budget decision in November to cut the Glenfield-Leppington line without confirming whether it would ever go ahead.

``For our part, we've doubled the federal investment in the nation's road and rail infrastructure and become the first Federal Government to state a willingness to invest in metropolitan public transport infrastructure,'' she said.

Work on the $1.6-billion rail project was to have started this year.

Instead, work on stage one only the $856-million upgrading of Glenfield station will start soon.

A spokeswoman for Premier Nathan Rees said stage two would be influenced by area housing development.

Macquarie Fields state MP Andrew McDonald has pushed for stage two to be in the next state budget.

The PM used the job-creating forum in Campbelltown last Wednesday to spruik the funds the Government has allocated to the area under the Nation Building stimulus plan.

He urged the 100 people from the business and training community who attended to devise region-specific strategies to cushion the area from recession and advised them to take their ideas to the employment co-ordinator assigned to the area, Zvia Zilber (92460766 or 0419270697).

Business people told the PM that they were in survival mode, struggling to retain skilled staff and needed tax breaks.

They reported mixed feelings to the event as time ran out before most had a chance to speak.