TONY JONES, PRESENTER: Craig Thomson has been under the national spotlight for months, but there's an old saying, "All politics is local".

Now in Mr Thomson's electorate of Dobell there's a local push to get him to quit his seat and force a by-election, well ahead of the federal election due next year, a scenario dreaded by the Gillard Government.

Amy Bainbridge reports from the New South Wales Central Coast.

AMY BAINBRIDGE, REPORTER: The region that makes up the seat of Dobell is rich in beauty, but it's the ugly allegations linking Craig Thomson to the misspending of union funds that has the locals talking.

LOCAL: I want to see him gone from here too, yeah. Have somebody that might be a bit more honest.

LOCAL II: When I think about it, my blood pressure goes up, so I try not to think about it too much. I think the whole thing's a sham and something should be done about it.

LOCAL III: You know, it's not very good at all, is it?

AMY BAINBRIDGE: The electorate of Dobell faces many issues on the ground, including a high rate of youth unemployment. Many people we spoke to are frustrated at their local member, but others insist that Craig Thomson has been doing a good job.

LOCAL IV: He's provided a couple of surf clubs. Yeah, I think he's generally done well for the area.

LOCAL V: Till he's proven guilty, I honestly believe everyone should be innocent until proven guilty. So, like I said, we all do - make mistakes, but I think he's doing alright, yeah

AMY BAINBRIDGE: Craig Thomson is accused of spending $270,000 of union money from his time at the helm of the Health Services Union to help him win Dobell in 2007. The now independent MP is also accused of using HSU money to pay for prostitutes.

CRAIG THOMSON, MEMBER FOR DOBELL: Quite frankly, we're getting enormous support in the electorate. And while the media and myself spending a lot of time talking about "Did he or didn't he," quite frankly the people in the electorate are focusing on what I am doing for the electorate.

AMY BAINBRIDGE: But the local business council says the sector is now under-represented by its federal member.

KEN BAKER, PRESIDENT, CENTRAL COAST BUSINESS CHAMBER: Craig was very visible in his first term, and in this term he's almost been invisible except when there's publicity, promotions about.

AMY BAINBRIDGE: Against a general trend in 2010, the seat of Dobell swung to Labor, with Craig Thomson clearing a margin of 5.1 per cent.

ANTONY GREEN, ABC ELECTION ANALYST: The 5.1 per cent, you'd normally call it a comfortable seat for Labor, but given the current state of polling and the circumstances surrounding Craig Thomson, it would be extremely difficult for Labor to hold at either a by-election or a general election.

AMY BAINBRIDGE: Some don't want to wait to until next year's election to get rid of Craig Thomson.

Tonight, independent councillors Greg Best and Doug Eaton moved a motion against Mr Thomson at Wyong Council, calling for him to resign from Federal Parliament. The motion was ruled out of order, but they say it sends a message.

GREG BEST, WYONG SHIRE COUNCILLOR: We've heard from Ms Gillard and we've heard from Tony Abbott. I want the community of the Central Coast, Wyong Shire and Dobell to have a voice, and that's why I've put this resolution to chambers tonight at Wyong Council so that the community is going to be able to say something on this issue.

CRAIG THOMSON: I'm flattered by the attention that Mr Best and Mr Eaton are paying to me, but I suggest that like myself who have been out there fighting for infrastructure for the Central Coast, $340 million worth of infrastructure in the last four years, that they're better to concentrate on fighting for things for their constituents than focusing on myself.

AMY BAINBRIDGE: The two councillors are also gathering a petition to circulate within the community, calling for Mr Thomson to go.

DOUG EATON, WYONG SHIRE COUNCILLOR: We're already getting calls from businesses and the like to say, "Yep, give me one in my shop. I'll - my customers are so annoyed about this that they will definitely sign it." So we're - we'll be using every possible manner to get that petition out to the public and I believe we'll get thousands and thousands of people to sign that petition.

CRAIG THOMSON: With these two, everything they do is about a political stunt. They change their minds weekly on particular issues.

AMY BAINBRIDGE: The Parliament and the people of Dobell await Mr Thomson's comprehensive statement to Parliament later this month.

Amy Bainbridge, Lateline.