Palmer on the offensive against Qld Labor

Mining magnate Clive Palmer has accused the Queensland Labor government of political interference over its handling of a 500km rail link project.

But Labor says it is Mr Palmer, a major financial backer of the Liberal National Party, who is attempting to influence the upcoming state election.

Mr Palmer's company China First announced on Tuesday its intention to launch an $8 billion lawsuit against rail operator QR National, which is more than one-third owned by the Queensland government.

Three years ago, Mr Palmer vowed to take legal action against Premier Anna Bligh in the lead-up to the 2009 state election, claiming she had defamed him while she was a guest on ABC television.

In the interview, Ms Bligh made comments about Mr Palmer's influence over the LNP.

This time Mr Palmer has accused QR National of breaching confidentiality and misleading conduct.

China First says it was in talks with QR National about a joint proposal to build a rail link between the Galilee Basin coal region and the central Queensland coast.

But last week QR National announced its own Central Queensland Integrated Rail Project, which the state government granted significant project status.

"Now we have QR National in conjunction with the Queensland government claiming it can build the rail link and create hundreds of jobs in what looks like a bid to score some political mileage in the government's bid for re-election," a China First spokeswoman said in a statement on Tuesday.

Deputy Premier Andrew Fraser denied there was anything untoward about the decision to grant QR National significant project status.

"I totally reject Mr Palmer's wild accusations," he said.

"The fact is all projects are being treated equally and fairly out of the Galilee basin."

Mr Fraser made the comments after Mr Palmer's company wrote to Coordinator General Keith Davies, asking him to explain the decision.

The letter raised concerns that Mr Davies, Premier Anna Bligh, employees of QR National and members of the Australian Labor Party "conspired to create the false and misleading impression that all is well in the Galilee Basin ... so that you or others may retain their position".

Mr Fraser said the letter was over the top, before calling on LNP leader Campbell Newman to pull Mr Palmer into line.

He said Mr Palmer would expect special treatment from an LNP government.

Asked on Tuesday how much influence Mr Palmer would have over an LNP government, Mr Newman told reporters "none".

He later said Mr Palmer would have no more influence than any other lobby or interest group.

"I'm not going to fight for any company's interests," he said, before guaranteeing the LNP would not be using Mr Palmer's jet during the five-week election campaign.

"If I'm the premier, I will do what's right for Queensland."

Mr Newman declined to answer questions about the lawsuit, saying Mr Palmer's business affairs had nothing to do with the election.

Asked repeated questions about whether he had met with Mr Palmer and whether they had discussed the Galilee Basin rail link, Mr Newman continued to reply "no".

"I have not ever discussed this with him, at all. I have not seen Mr Palmer for the best part of four months at least."

Ms Bligh called on Mr Newman to come clean with voters.

"We know Mr Newman has had conversations with Mr Palmer over this matter and we know today he tried to deny that," she told reporters.

"What promises has he made to Mr Palmer?"

On Tuesday afternoon a spokeswoman for Mr Newman moved to clarify his earlier remarks, saying Mr Newman thought the questions had related only to the current conflict between Mr Palmer and the state government.

She said Mr Newman had announced the LNP's policy on the rail route last year, at which time he had told reporters he had discussed the Galilee Basin with Mr Palmer.

On Tuesday, Mr Newman said Labor had mismanaged the rail link.

In May last year Mr Palmer's company was locked in a stalemate with two other privately owned companies, prompting speculation three separate rail links would be built.

Both the LNP and Labor say there should only be one rail link in the corridor.

Mr Palmer donated more than $550,000 to the LNP at the last election.

The election will be on March 24.