The Powerhouse Museum's board of Trustees has slammed Michael Daley's plans to spend $45 million to keep the museum in Ultimo, claiming the funds are "insufficient".

The NSW Opposition Leader on Sunday announced he would axe a controversial Liberal plan to move the Powerhouse Museum to western Sydney, instead committing $45 million to restoring the museum on its current site and $500 million on a “cultural institution” in Parramatta.

Opposition Leader Michael Daley addresses the media at the Power House Museum in Ultimo. Credit:Brook Mitchell

Professor Barney Glover, president of the Powerhouse’s Board of Trustees said Labor’s policy announcement was ‘‘insufficient’’.

“If the museum remains in Ultimo, as the Labour Party policy proposes, a significant capital and operational investment will be required to enable it to remain a world class destination for visitors and to ensure the collection is properly managed and exhibited in the long term ... The Trust calls on the Labour Party to announce an appropriate level of investment in the Museum at its Ultimo location.’’