MAVERICK Independent MP Bob Katter has called for North Queensland to become a state in its own right after a population boom in Cairns and Townsville.

The combined population of 514,046 for the Townsville and Cairns regions is ahead of Tasmania's 510,519. Kennedy MP Bob Katter says the news "screams out for a separate state", while business leaders say it's time the two regions used their combined muscle to lobby for more government resources and funding.

"I have long argued for (a separate state) north from Rockhampton," Mr Katter told the Townsville Bulletin.

He said if statehood can't be achieved in the short term, a more realistic goal would be to have separate budgets for the north and south of Queensland.

"Administratively we could be separate, with each responsible for their own budget," he said.

Analysis of the latest Australian Bureau of Statistics figures by researcher Rick Carr has found that the joint population of the two cities is 3527 more than Australia's smallest state.

The Herron Todd White research director said previously the populations of both cities were 505,739 when Tasmania was 507,281.

"Rather than inane debates about the relative merits of Cairns versus Townsville, the issue should be more about having a united voice that gives us the recognition as a region that Tasmania gets as a state in places like Brisbane and Canberra," Mr Carr said.

Read more at the Townsville Bulletin.