The resource-rich Australian city of Brisbane was Wednesday selected to host the G20 summit in 2014, drawing stinging criticism from officials in Sydney.
Prime Minister Julia Gillard, who announced last year the country had been picked as host nation, said the Queensland capital would hold the summit of the leaders of the world's 20 largest economies.
"It is a real honor for Australia to host the G20, and provides a vital platform to build on Australia's role in global economic decision-making," Gillard said.
"With Queensland a driving force behind the nation's economy there could be no better place to welcome the world's leaders than Brisbane."
She said Brisbane was chosen "on the basis of its overall capacity to host such a large and complex event".
But authorities in Sydney, which is governed by the conservative party in opposition to Gillard's Labor, were fuming.
"Sydney is the only true world city of Australia," said New South Wales state Planning and Infrastructure Minister Brad Hazzard.
"Sydney has roughly one third of Australia's GDP, it has more than 80 percent of the headquarters of major financial institutions. We have the harbor, we have the Opera House.
"It would appear that Julia Gillard is quite prepared to use the world's leaders as her own political playthings by taking them to Brisbane in an effort to shore up the Labor vote in Queensland."
Gillard's fragile ruling Labor government performed poorly at recent Queensland elections and with national polls due next year is keen to endear itself to the state electorate.
The event is expected to bring about 4,000 delegates and 3,000 media to the city, injecting millions of dollars into the economy.
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