Palmer under fire over LNP support

Mining magnate Clive Palmer’s attempts to distance himself from the Liberal National Party have backfired.

Mr Palmer, a leading financial backer of the LNP, tried on Wednesday to quash Labor claims he would expect special treatment from an LNP government.

Instead, his 40-minute tirade against the Queensland government further fuelled speculation about his dealings with LNP leader Campbell Newman.

Mr Palmer has accused Labor of conspiring with rail operator QR National for commercial and political gain.

But his attack on Premier Anna Bligh and Treasurer Andrew Fraser did not stop there.

Speaking to reporters in Brisbane, Mr Palmer criticised Labor’s handling of the Queensland floods and Ms Bligh’s recent announcement about the timing of the 2012 state election.

“You’ve got to ask yourself why was it that the premier came out and made an announcement that she’s going to announce the election on the 19th (of February) and hold it on the 24th of March,” Mr Palmer said.

“She did that so she’s not in the caretaker period and so she can get together and do all these insider deals … before the ship’s sunk.”

Mr Palmer’s company China First has announced an $8 billion lawsuit against QR National, which is one-third owned by the state government.

Mr Palmer said millions of dollars had been spent by Waratah Coal developing a China First plan to build a rail link from the Galilee Basin to a central Queensland port.

He said he was contacted by QR National about seven months ago, resulting in an agreement being made last week to build one multi-user corridor.

He is accusing QR National of breaching the confidentiality agreement made with China First in December last year.

When news of the lawsuit emerged on Tuesday, Labor denied any wrongdoing and told reporters Mr Palmer would expect special treatment under an LNP government.

Mr Newman said Mr Palmer would not have any influence over the LNP during the election campaign or after it.

He denied having discussed the Galilee Basin with Mr Palmer.

A spokeswoman for Mr Newman later moved to clarify his remarks, saying Mr Newman thought the questions had related only to the current conflict between Mr Palmer and the state government.

Ms Bligh told reporters she hoped Mr Palmer would clarify the nature of their relationship.

On Wednesday afternoon Mr Palmer was adamant he had “never” spoken to Mr Newman about QR National and the Galilee Basin.

However, he changed his response when reporters told him Mr Newman said the pair had spoken about the basin.

“I’ve talked about the Galilee Basin generally with people, but you’re talking about a one-to-one discussion,” he said, before explaining that he had only met Mr Newman three or four times.

Mr Palmer said it was no secret he was loyal to the LNP.

He said he had not and would not be making any donations to the LNP this financial year.

“I’m doing that out of protest against the premier’s legislation … where trade unions are free to give up to $500,000 a year and companies and people in business … are restricted to $5000 maximum donations,” he said.

Asked whether the lawsuit announcement was timed ahead of the March 24 state election, Mr Palmer warned reporters against making rash inferences.

He said it was for others to decide whether the move mirrored his actions leading up to the 2009 election campaign.

Three years ago Mr Palmer took defamation action against Mr Bligh over comments made about his influence over the LNP.

The matter was resolved in mediation after the 2009 poll.

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