THE PREMIER, Kristina Keneally, has accused the lord mayor, Clover Moore, and the City of Sydney of ''playing politics'' with the biggest development in the CBD and has assumed ministerial control to ensure it proceeds.

Ms Keneally announced she had taken responsibility from the Planning Minister, Tony Kelly, for the $6 billion redevelopment at Barangaroo to ensure it was not derailed by a ''small group in the community''.

On-site takeover ... Kristina Keneally announces her new portfolio as minister for Barangaroo. Credit:Kate Geraghty

Asked who was in that group, Ms Keneally pointed the finger at the lord mayor, who last week quit the board of the Barangaroo Delivery Authority, saying she was unhappy about the process for managing the development.

''Clover accepted my offer to be on the board with great enthusiasm, she's called for six years for greater co-operation between the city and the state and her decision to walk away from the board is one that disappoints me greatly,'' Ms Keneally said.