Clive Palmer's advice to former Queensland Nickel workers to "move location or go somewhere", smacks of arrogance the Mayor of Townsville Jenny Hill says.

Mr Palmer owned the Townsville-based company when it went into liquidation in 2016, leaving 800 people out of work.

When asked on Friday if it was appropriate to take a European cruise holiday while some workers were unable to pay their bills, Mr Palmer said he was not responsible for their jobs and families.

"If you haven't been employed for two years it doesn't show too much initiative about yourself, does it?" Mr Palmer said.

"Why not move the location or go somewhere? I wouldn't be unemployed for two years — I'd accept my responsibility to look after my wife and my children and I expect everyone else should too.

"But in a final analysis: I'm not a director of the company, I was a member of Parliament at the time. I'd retired three years ago from business, so I'm not responsible for everyone in this state, everyone in this country, providing them jobs and looking after their families."

Mr Palmer was in court on Friday for a private mediation between Queensland Nickel and the Queensland Department of Environment and Heritage Protection, but declined to provide any details.

Townsville Mayor Jenny Hill says Clive Palmer should sell Queensland Nickel. ( Supplied: Townsville Regional Council )

Councillor Hill said a number of people had taken fly-in-fly-out jobs after the company's demise, but Mr Palmer was in no position to be offering advice.

"It smacks of arrogance for him to offer advice, the reality is he's telling people to move away," she said.

"There are a number of Queensland Nickel workers who are doing that ... but there is a Queensland Nickel plant that could be back operating if Clive Palmer just sold it.

"The actions of Mr Palmer is hurting our community. The bloody mindedness in not selling the plant and allowing another operator to employ people, to fix up the facilities, and to create wealth, not just for Townsville but for Australia, and that's what Clive's doing."

Federal Employment Minister Michaelia Cash implored the former member for Fairfax to "start answering questions".

"Clive Palmer needs to stop playing games," she said.

"My thoughts are with the workers and families who still do not have jobs."

Holding back jobs: Mayor

Councillor Hill said Mr Palmer bought the company for a dollar from BHP and would be getting a good deal if he sold it for the same price.

"Mr Palmer's actions is stifling our community. There is an opportunity and he knows it as well as I do for that plant to be on-sold and the stubbornness is really hurting our community," she said.

"And I think Mr Palmer needs to understand the legacy he's leaving, and basically it's a trail of failed enterprises. QNI, Coolum resort, it's hurt each of the communities he's touched.

"So why not admit it that you can't operate a refinery, sell it to someone who does, and stop hurting the community?"