Queensland MP Robbie Katter wants Premier Annastacia Palaszczuk to stand aside while the ethics committee investigates her decision to strip his party of resources.
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The premier was referred to the Parliament's powerful ethics committee on Friday by Labor Speaker Curtis Pitt to investigate whether she was in contempt over allegations she threatened members of the Katter's Australian Party.
Mr Pitt said his referral did not mean the allegations against the Premier were proven.
"I have not taken this decision lightly, I have given this decision serious consideration," he said.
"In my view there are sufficient questions of fact to be determined against the evidence such that it would be prudent to refer the question as to whether there has been a contempt to the ethics committee.
"In relation to each of the potential contempts it would be for the committee to consider whether the Premier's conduct could be considered an improper interference with the free performance of KAP members' duties as members of Parliament."
However, Mr Katter has called on Ms Palaszczuk to step aside until the matter is finalised.
"I take my hat off to the Speaker for following what seems to be all the evidence," he told ABC radio on Saturday.
"This may not be the popular move in terms of the government but it is on the government now to say for the premier to stand down until this is resolved."
Mr Pitt's lengthy explanation, tabled about 4.30pm, followed complaints by Mr Katter about the manner in which extra staff were being cut from his office.
The extraordinary saga began over calls for the Queensland branch of the party to denounce a speech made by KAP senator Fraser Anning, who used the Nazi-associated phrase "final solution" while criticising Muslim immigration.
Ms Palaszczuk said she wanted the KAP to publicly condemn Mr Anning's comments and said she would be reviewing the party's arrangement for extra staff, which had been granted in 2015 during negotiations with the Palaszczuk administration to form government.
The Queensland KAP members refused and Ms Palaszczuk later announced she would rip up the staffing deal.
Last month, the Crime and Corruption Commission said the state government had the right to allocate and withdraw staffing resources, but chair Alan MacSporran said an independent body should be created to objectively address resources.
Mr MacSporran also said, based on the information available, Ms Palaszczuk's comments – if proven – could involve an offence of bribery of a member of Parliament.
But the CCC did not believe the offence was intended to apply to statements made openly in Parliament, there was no chance of a successful prosecution and the matter should be dealt with by the Parliament.
In his ruling, Mr Pitt said there was no prima facie attempt to influence a member by a bribe.
"I am not, therefore, referring consideration of the alleged contempt relating to bribery to the ethics committee," he said.
Mr Katter's complaint to Mr Pitt alleged the Premier's comments in Parliament, correspondence and statements in the media were contempt as they constituted "threats, menaces, intimidation or molestation of the KAP members" or that withdrawing staff constituted disadvantaging KAP members on account of their failure to condemn Senator Anning's speech.
"The Premier's response argues her conduct did not amount to threats, intimidation, molestation or compulsion by menace and was a normal part of the political process," Mr Pitt wrote in his ruling.
Immediately after the CCC's findings, Ms Palaszczuk said people made comments in the "heat of question time".
"That's the argy-bargy of Parliament," she said.
LNP leader Deb Frecklington said the Premier's referral to the ethics committee was a serious issue and called into question her judgement.
"The Premier must now accept the consequences of her actions," she said.
Last month, Mr Katter called for Ms Palaszczuk to stand aside during an investigation.
The Parliament's ethics committee - which has equal numbers of government and opposition members - has significant powers to punish members found guilty of contempt, including fines and imprisonment.
Parliamentary rules mean MPs will not be able to discuss the matter during next week's sittings.
