VIDEO: Palaszczuk flies into new LNP leader Tim Nicholls
UPDATE: NEW LNP leader Tim Nicholls must now move quickly to unite a deeply-divided Opposition after his 22-19 overthrow of Lawrence Springborg left many questions unresolved.
Caloundra MP Mark McArdle, who backed Mr Springborg, said Mr Nicholls would need to move swiftly to bring people in the parliamentary party together.
"I wish them both all the best,'' Mr McArdle said in reference to Mr Nicholls and his new deputy Deb Frecklington.
"They are both young, ambitious people and join together behind them to work hard for Queensland and to throw out Labor and the unions who support them."
Mr McArdle said he had voted for Mr Springborg because he had done a good job stabilising LNP membrs of parliament after the 2015 election defeat and had brought them back into the ascendancy in a series of polls.
"But I respect the party room's determination.''
Mr McArdle said he suspected Queensland was now much closer to a state election this year than it had been.
However he said Ms Palaszczuk was blocked to an extent by the federal poll in July, the upcoming state budget and estimates hearings from taking swift advantage of perceptions of LNP disunity.
Estimates Mr Mander would poll poorly were overturned when he secured 11 votes, just three behind Mr Nicholls, when he was eliminated in the first ballot.
Eight of those votes then went to Mr Nicholls with Mr Spingborg only being able to secure two.
Speaking from Maryborough the Premier said Queenslanders had seen the LNP completely consumed with themselves.
"They're concerned about their own jobs and not about the jobs of Queenslanders,'' she said.
"Today I've been here meeting with people who we as government are giving an opportunity to get long-term employment.
"My government is clearly focused on delivering jobs for families right across this state no matter where they live.
"The only thing that I'll make comment about Tim Nicholls is that everyone knows he was Campbell Newman's right hand man. Tim Nicholls had one thing at the forefront of his thinking and that was to sell our state's assets.
"I know very clearly that Queenslanders do not want to see their assets sold and under a Labor government I lead that will not happen.
"I don't know what Tim Nicholls is going to do but what I do know is my government is focused, we are united, we are about delivering jobs for Queensland and that is going to be at the centre of our thinking when we deliver our state's budget next month."
LATEST: FORMER Queensland Treasurer Tim Nicholls has been narrowly elected as the new leader of the LNP in Queensland.
Mr Nicholls won the party room ballot against Lawrence Springborg 22 to 19 votes.
He won in the second round of voting after Tim Mander was eliminated in the first round with 10 votes.
Member for Nanango Deb Frecklington is new Deputy Opposition Leader after being unopposed. She replaces former Education Minister John-Paul Langbroek.
Mr Nicholls said his win was all about "taking up the fight" to the Labor Government.
"We bring together a mix of energy and experience," he said.
Mr Nicholls said a decision on his new front bench would be made in coming days but did not rule out including Mr Springborg and Mr Langbroek in senior positions.
LNP president Gary Spence has paid tribute to Mr Springborg and welcomed the new leadership team.
"Tim Nicholls brings significant political experience to the position of Parliamentary Leader and with the talented Member for Nanango, Deb Frecklington, as Deputy Leader, the LNP remains the party committed to representing all Queenslanders," he said in a statement.
"They will form an effective team holding an incompetent Labor Government to account and promoting LNP policies to unleash Queensland's true potential in the lead up to the next state election. "The organisational wing of the LNP looks forward to working closely with the new leadership team.
"I also pay tribute to Lawrence Springborg and John-Paul Langbroek for their leadership since the 2015 state election."
Former deputy Premier Jeff Seeney introduced a motion just after 11am to declare the leadership positions vacant.
The 41 members had to first decide on a show of hands whether a leadership spill should occur.
Mr Mander was not flanked by any MPs as he entered the party room.
"I'll do all my talking in there. We'll soon find out [how he goes in a leadership spill."
EARLIER: LNP sources said Mr Mander was set up as a stalking horse for a leadership challenge from Tim Nicholls with the backing of Mr Seeney.
It is expected Mr Mander, a former NRL referee, will be the first eliminated.
That would leave the contest between Mr Nicholls and Mr Springborg with sources saying there needed to be a clear winner to ensure the issue is resolved.
The leadership has remained an issue since Mr Springborg narrowly won it in a tight vote by dis-spirited survivors of the state election debacle.
There is pessimism the outcome will be clear cut with it more likely to be a close contest between the pair.
Party insiders says Labor is looking on gleefully and would be considering an election later this year to take advantage of the disunity among the Opposition.
One source said Mr Mander and Mr Seeney aren't particularly close so it was likely he had been used to bring on the more substantive challenge from Mr Nicholls.
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Mr Seeney was not at all liked by voters and Mr Nicholls, who is also still too close to the LNP's ill-fated asset sale policy, will be damaged by the association.
Mr Seeney has been unwanted in the shadow cabinet since the LNP's January, 2015, shock loss to Labor and is reported to be furious at not being called up to replace John McVeigh who will seek in July to shift to the Federal Parliament.
Sources say the amount of support Mr Mander received may ultimately determine the leadership predicting once eliminated his support would bleed to Mr Nicholls.
"This has been going on for some time and has been very well planned,'' one LNP member said.
"Up to yesterday Tim Nicholls was not running.''
That was before Mr Springborg called a meeting to put media speculation to rest and before Mr Seeney's 2.30pm email to LNP parliamentarians declaring he would move for a spill.
Bookmakers expect Mr Springborg will be up to the challenge.
Sportsbet.com.au has him at $1.90 favourite to retain the leadership from Mr Nicholls on $3.50 and Mr Mander the outsider paying $6.
The bookmaker has the spill motion to bring on a vote at a short $1.30 to get up.
Crucially it has priced the unrest at having a negative impact on the LNP's chances at the next election drifting it out from $1.87 line ball with Labor to $2.05.
Correspondingly the Palaszczuk team has shortened to $1.70 favourites.
"The odds suggest Lawrence Springborg will win the leadership ballot, but the real winner appears to be Labor which is now the outright favourite to win the next Queensland election," said sportsbet.com.au's Ben Bulmer.