The New South Wales Minerals Council has confirmed that it lobbied the State Government to cut funding to an environmental legal service.

In October, the Council wrote to the Premier, saying that the Environmental Defender's Office was supporting a 'campaign of economic sabotage' against the coal export industry.

Last month the State Government announced it was directing funding away from groups that provide legal advice to activists.

Acting state opposition leader Linda Burney says she wants the government to explain this decision.

"The Environmental Defenders Office provides free legal advice to community groups, who often have little resources, about planning and development issues in their area and its a very important service," she said.

"If the O'Farrell government has allowed the mining industry to influence their decision then there needs to be very serious questions asked of the O'Farrell government."

The State Government has declined to comment on the matter.