Labor should abandon its promise to spend $100 million on a north Queensland sports stadium, Katter's Australian Party (KAP) MP Rob Katter says.

Mr Katter has told 612 ABC Brisbane he was less concerned about the amount of state government debt than about what projects the Government was willing to fund, whether it be Labor or the Liberal National Party (LNP).

"Debt's OK so long as it's spent in the right areas," he said.

"Debt spent on good, productive infrastructure is not as much of a problem as debt spent on social services."

Mr Katter said he was fielding calls from both Labor and the LNP as both sides prepared for the possibility of forming minority government with help from the KAP.

As counting continues, by lunchtime Tuesday Labor was ahead of the LNP but remained three seats short of an outright majority.

The ABC's election computer was predicting Labor would claim 44 seats.

But senior Labor MP Jackie Trad said they still hoped to win 45 seats and govern in their own right.

"The Labor Party is extremely hopeful that we'll be able to get to a majority," she said.

Townsville stadium project should be 'absolutely' dropped

When Mr Katter was asked whether he would request Labor drop its $100 commitment for Townsville stadium, he replied, "absolutely".

He said Labor would also need to carefully consider funding a rail line from the Galilee Basin in central Queensland to Abbot Point, and not simply fall back on the argument that the project needed a strong business case.

"Say for instance they [the cattle industry] asked government to subsidise or at least go guarantee on a loan to build an abattoir to help save the cattle industry in north Queensland, and the Government said 'we don't invest in things there's no business case for' but then they're going to go and invest in a sports stadium in Townsville - it's arch hypocrisy," he said.

"They're willing to build things to buy votes but when it comes to productive infrastructure, where there's no votes out in a regional area, the excuse is always 'there's no business case for it'.

"But there's a lot of non-commercially viable things that get built in the cities."

Mr Katter said the LNP was promising to spend billions on road infrastructure that would have no long-term impact on jobs and economic growth.

While the level of state debt was not to be scoffed at, he said there was more than one way to address it.