Local Government Minister Paul Toole has been urged to investigate serious allegations made against Liverpool's mayor aired in State Parliament.

The allegations, which range from Ned Mannoun's father receiving apartments from developers to references to a mysterious fire that destroyed a council building, were outlined by Shooters and Fishers MP Robert Borsak under parliamentary privilege on Thursday night.

Liverpool mayor Ned Mannoun.

"I strongly urge the Minister for Local Government to undertake an immediate investigation into all points raised by me today," Mr Borsak said.

Cr Mannoun told Fairfax Media he denied all the allegations "100 per cent" and accused the Labor Party of attempting to smear him in order to regain the Liverpool mayoralty.