ANOTHER business chamber has hit out at mayor Katie Milne after she threatened to boycott local companies involved in the Tweed Valley Hospital build.

The Kingscliff Chamber of Commerce told the Tweed Daily News it strongly supports Kingscliff businesses and the entire Tweed Shire Community.

"Local businesses have come under attack from the mayor Katie Milne for attempting to ban local businesses and contractors from working on the new $534 million Tweed Valley Hospital and working with Tweed Shire Council," a spokesperson said.

"This is a direct threat to people's livelihoods and peoples jobs all for the sake of councillor Milne abusing her power.

"The mayor recently announced the threat to boycott businesses and place blockades on the site. These actions are simply madness and not supported by the Chamber of Commerce. Such actions are not beneficial to the business community and to suggest that a business that works on the construction of the hospital is to be boycotted from working for the council is totally unacceptable.

"We remind the mayor and councillors to support local businesses in line with their local procurement policy."

The criticism comes after Cr Milne was slammed by Tweed Chamber of Commerce president and councillor Warren Polglase, Tweed MP Geoff Provest and Cr Pryce Allsop following her boycott proposal at a hospital site protest on Monday.

Cr Milne has since retracted her comments.