Broadcaster Alan Jones has provided a character reference for Ian Macdonald as the former NSW Labor minister faces a jail sentence for criminal misconduct.

The surprise reference prompted Supreme Court justice Christine Adamson to warn Macdonald's legal team she would give limited weight to character references from his family and supporters.

Macdonald was found guilty in March of misconduct in public office for granting a multimillion-dollar coal exploration licence to a company chaired by his political ally and former union boss John Maitland.

Maitland, the former head of the Construction, Forestry, Mining and Energy Union, made $6 million from the deal and was found guilty as an accessory.

The Director of Public Prosecutions is seeking to claw back the profit under proceeds of crime laws.

On Friday, Justice Adamson heard submissions from the parties on the appropriate sentence as the Crown pushes for the men to be jailed.

In a sign she intends to impose a custodial sentence, Justice Adamson revoked the men's bail.

"This is outrageous, no!" Maitland's adult daughter cried out in court as corrective services officers moved to take her father into the cells beneath the court.

"This is so wrong. You're all .... disgusting people."

Jones is a vocal critic of the Independent Commission Against Corruption, which has exposed criminal misconduct by Macdonald and his jailed former colleague Eddie Obeid.

The court heard Jones and former NSW Labor minister John Della Bosca had provided references for Macdonald, along with members of the former minister's family.

Justice Adamson asked Macdonald's barrister, Matthew Johnston, SC, if Jones' reference to Macdonald being found guilty in the court of "public opinion" referred to the jurors "selected at random" from the community.

Mr Johnston said it was a reference to people Jones spoke to as a broadcaster.

"You can imagine what weight I give that," Justice Adamson said.

Prosecutor Michael McHugh, SC, said Macdonald's conduct undermined public confidence in the institutions of government and only a jail sentence was appropriate.

"The victim is the state," Mr McHugh said.

Mr McHugh said Macdonald was "substantially motivated" by a desire to benefit Doyles Creek Mining, a private company headed by Maitland, rather than to further the interests of NSW.

He said the men had shown "no contrition".

Justice Adamson said: "There is no acknowledgement of guilt, certainly in Mr Macdonald's case."

The court heard Macdonald's legal team also wanted the judge to take into account laws announced by the Berejiklian government on Tuesday to strip Macdonald and others of their parliamentary pensions.

They argue the change is a form of punishment outside the court process that should mitigate any sentence imposed by the judge.

Justice Adamson said she might be required to take the change into account if the bill becomes law by next Friday, when she intends to sentence the men.

She said a "remarkable feature" of the case was that much of the misconduct occurred "in plain sight".