Outspoken Liberal MP Craig Kelly told a monarchist dinner the Commonwealth nation of Tuvalu is floating, not sinking, in comments that could reignite tensions with Australia's Pacific neighbours just weeks after a major diplomatic incident.

Mr Kelly made the comments at an Australian Monarchist League function in Sydney on Friday night during a wide-ranging after-dinner speech in which he accused the ABC of covering up crucial information about climate change to suit its "green left agenda".

Liberal MP Craig Kelly was constantly asked about the ABC by guests at the Australian Monarchist League dinner. Credit:Michael Koziol

Last month's Pacific Islands Forum in Tuvalu was rocked by leaked audio in which Deputy Prime Minister Michael McCormack said Pacific Islanders would survive climate change because "they pick our fruit".

Fiji's Prime Minister Frank Bainimarama later described Prime Minister Scott Morrison as being "very insulting and condescending" during a leaders' retreat.