Last week Bailey attacked councils for producing "mini Pravdas" and yesterday branded an Audit Commission investigation that found little wrong with them as "a complete waste of time".
But councils suggested she was not acknowledging the financial benefits to Trinity Mirror of printing the papers.
"While local newspapers might not get the traditional advertising they once did from councils, the newspaper industry is benefiting in other ways, such as through print contracts with local authorities," said a spokeswoman for Hackney council.
"In Hackney we have an excellent working relationship with Trinity Mirror who print our council paper and who put a huge amount of effort into pitching for the contract.
"It seems odd, to say the least, that Sly Bailey so vocally opposes those publications which she is happy to print, and happy to bill us every month for."