Albury lawyer James Sloan addressed both the NSW Liberal and Labor candidates at Tuesday night's Friends of Nolan House meeting, urging them to use the election to address the 'grossly underfunded' system.

Mr Sloan said people were routinely being sent to Nolan House by magistrates under Section 33 of the Mental Health Act, only to be returned to the court because there was no room for them at the facility. 

He said magistrates then faced a "terrible decision" of sending the ill person to jail or release them into the community despite often being found to be a danger to themselves or others.

Mr Sloan said just two weeks ago someone was sent to Silverwater maximum security jail after being returned to court from Nolan House due to a lack of beds.

He said these people were sick, not criminals. 

"You can destroy someone's life, if you take someone who has not been in jail and you put them in jail," he said.

"The experience is shockingly traumatic and they don't ever recover. 

"Their mental health problems are made worse. The prison system is suppose to reform people but it's a school for criminals."

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Mr Sloan said jailing or releasing people rather than giving them the mental health care they need likely increases rates of recidivism and suicides. 

He called on NSW Liberal candidate Justin Clancy and Labor candidate Lauriston Muirhead to use the situation as 'ammunition' to illicit investment from their respective parties. 

Both Mr Muirhead and Mr Clancy addressed the meeting saying they wanted to advocate for the facility.

Mr Clancy confirmed the investment promised by current Liberal member Greg Aplin, while Mr Muirhead said he was hoping to get the shadow minister for health and mental health to visit Albury. 

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