REDCLIFFE MP Scott Driscoll has been suspended from the LNP, Premier Campbell Newman has announced.

Mr Newman said he was disappointed Mr Driscoll had not been more fulsome about allegations raised by The Courier-Mail.

Mr Driscoll has been the subject of a number of allegations that he funnelled taxpayer funds from a community organisation to a company owned by his wife.

The Courier-Mail has previously reported that Mr Driscoll had been secretly controlling a taxpayer-funded community association that helps the homeless and other people in need, funneling tens of thousands of dollars in consultancy fees to his wife's company.

Mr Newman told a press conference a short time ago: "I believe that until these matters are resolved it is appropriate Mr Driscoll's party membership be suspended."

"I would hope that Mr Driscoll can return to the LNP".

Mr Driscoll will sit on the cross benches until the matters are resolved.

Today's shock suspension comes after The Courier-Mail revealed Mr Driscoll was secretly directing operations at the Queensland Retail Traders & Shopkeepers Association and the Regional Community Association Moreton Bay (RCAMB) while an MP.

His wife was on the payroll at RCAMB, a taxpayer-funded provider of social services, while her company Norsefire received $120,000 in consulting fees in the past 12 months.

Norsefire also had a contract with the retailers' body worth $350,000 a year to provide "management services."

The Courier-Mail has established Mr Driscoll last year installed dedicated phone lines in his Redcliffe electorate office so that staff on parliamentary salaries could help him run the QRTSA .

Late this afternoon, Mr Driscoll's electorate office released a statement: "Mr Driscoll has spoken with Queensland Premier Campbell Newman this afternoon and discussed the ongoing campaign against him by the Labor Party and certain media outlets.

"Mr Driscoll said that given the deliberately and highly prejudicial nature of the way the ongoing campaign has been waged, that it would be in the best interests of the Newman LNP Government for him to sit on the cross benches of the Queensland Parliament in the short term, while any legitimate agency independently made their own assessments of facts, as opposed to slurs, innuendo and falsehoods.

"Mr Driscoll has reiterated that he has faithfully served the people of Redcliffe for the last year and will continue to do so. Mr Driscoll again reiterated that he has not at any stage been involved in any wrongdoing.

"He said he was very confident that any legitimate and independent viewing of the matter will highlight these facts.

"Further, as a Member of Parliament, Mr Driscoll is not and never has been personally in any position to be able to direct or allocate any amount of State Government funds to any community group, association or company.

"All funding allocation decisions are taken by Ministers and Cabinet, never by individual Members of Parliament.

"Also, Mr Driscoll has confirmed that contrary to claims in certain media, the Queensland Retail Traders and Shopkeepers Association was not established at his Redcliffe electorate office and not as alleged in certain media in order for a company owned by his wife to commercially gain via an alleged contract for Secretariat and Administration services worth a quoted "$350,000pa".

"No billing or commercial benefit has been derived via such an alleged contract to benefit Mr Driscoll's wife's company since Mr Driscoll was sworn in as the Member for Redcliffe in May 2012.

"Mr Driscoll's wife has provided support and services to QRTSA of her own volition via her company on a pro bono basis due to her commitment to the small business sector and the QRTSA has never been registered at Mr Driscoll's electorate office.

"Mr Driscoll will be making no further comment on these matters and looks forward any departments or agencies considering these issues to deliver a prompt and independent assessment of the facts," the statement said.

Until today, Mr Newman has backed his MP, saying he had seen nothing to preclude him representing the people of Redcliffe.

Last week he described the Courier-Mail's series of revelations as an "Easter egg hunt."

LNP president Bruce McIver today said the LNP had received a request from Mr Newman to suspend the party membership of the Member for Redcliffe Mr Scott Driscoll.

"The LNP agrees with that course of action and has effected an immediate suspension of Mr Driscoll's membership of the LNP,"' Mr McIver said.

- with Kelmeny Fraser

