PREMIER Campbell Newman says he has saved taxpayers' money by terminating the contract of Transport and Main Roads Director-General Michael Caltabiano less than a year into his five-year contract.

Although Mr Caltabiano has earned almost $200,000 after standing down on full pay in October, Mr Newman said his termination payout - the equivalent of six months' pay - would be much less than what he might have got under the previous government.

"This might be of cold comfort to people but if he had been signed up on the contracts that I inherited from the previous government, he could've been eligible for four years worth of pay,'' Mr Newman told radio 4BC.

"That's the sort of deal that the previous government had signed up its senior people to. When I came in, I said 'this is outrageous' and I did actually change the contract arrangements so we didn't have this situation.

"So I have actually saved the taxpayers' money for this and future eventualities.''

The Premier said he took "personal responsibility'' for Mr Caltabiano's appointment, made within three days of the LNP winning last year's State election in a landslide victory.

"It was my decision, I'm not shying away from that,'' said Mr Newman.

But he refused to elaborate on why he had decided to terminate Mr Caltabiano's employment as of March 15, given the former Liberal Councillor and MP has been stood down since October 25.

Translink CEO Neil Scales is continuing to act in the DG's role with a permanent replacement expected to be announced next month.

Transport and Main Roads' Minister Scott Emerson declined to say if he would seek greater input into the next appointment.

"The appointment of the Director-General is always a matter for the Premier and I'm going to leave it at that,'' Mr Emerson said.