Labor struggling to retain party status as Campbell Newman takes power

THE LNP has dealt Queensland Labor its worst ever defeat, seizing power in an election that is likely to leave the ALP with fewer than a dozen seats.

Campbell Newman

THE LNP has dealt Queensland Labor its worst ever defeat, seizing power in an election that is likely to leave the ALP with fewer than a dozen seats.

Campbell Newman's Liberal National Party ended Labor's 14-year reign with a crushing win that could see the ALP struggling to achieve double digit figures in the 89-seat parliament.

Labor was reduced to only 11 seats in 1974, and on latest counting tonight appeared set to retain only nine seats. Some analysts put the figure even lower, at seven.

This would mean Labor falling short of official party status and relying on the incoming LNP government to grant it party offices, staff and resources.

The LNP is expected to have a staggering 74 seats.

Katter's Australian Party tonight looked set to emerge from the election with two seats, after polling indicated it could win as many as five.

To cap Labor's woes Deputy Premier and potential Labor leadership successor Andrew Fraser has been thrown out of parliament, along with at least five other ministers.

Another potential leader, Education Minister Cameron Dick, was forecast to lose his Brisbane seat of Greenslopes, the ABC said.

Anna Bligh was also put under intense pressure in her South Brisbane electorate, but appeared set to survive courtesy of Greens preferences.

Addressing the party faithful at the Hilton Hotel, Mr Newman said the election victory was one for all Queenslanders and he would not let them down.

A jubilant and relaxed premier-elect paid tribute to his LNP colleagues and said they had a massive task ahead of them to get the state back on track.

“The priority of our government is to get our economy moving and sort out our state finances,” Mr Newman said, adding “the job starts tomorrow”.

With his wife, Lisa, at his side the premier-elect was hugged and kissed as he worked his way through the emotional crowd at the Hilton.

He said he wanted to thank the people of Queensland for voting for change.

“I thank you for your support,” he said. “I thank you for your trust. We will keep our promises ... and we will not let you down.”

Mr Newman acknowledged many who had voted for the LNP this time had never done so before.

“It's an honour that you would trust us with this responsibility by handing us that vote”

Mr Newman said the LNP was humbled by the responsibility it had been given. He pledged he would govern with humility, grace and dignity.

He acknowledged and thanked Anna Bligh for her service to Queensland, especially during last year's flood and cyclone disasters.

The former Brisbane mayor also praised Labor MP Kate Jones, who he defeated in the Brisbane electorate of Ashgrove to win his seat in parliament.

Ms Bligh earlier congratulated the LNP and Mr Newman on a “historic victory” and wished the LNP leader well in succeeding her as premier.

Addressing the bloodbath Labor had suffered, Ms Bligh expressed sympathy for the dozens of MPs who had lost their seats.

“For Labor and our supporters days like today are very tough for our party,” she said.

But in a gee-up to the faithful, she said Labor had achieved much in reshaping Queensland.

“We have a record we can be very proud of, we have built a platform that will catapult Queensland into the 21st century,” she said.

Labor had saved Queenslanders' jobs after the global financial crisis, introduced a prep year at primary school and preserved the environment, among many other achievements.

Her proudest moment was when Queenslanders “stood tall in the eyes of the nation and the rest of the world” after last year's flood and cyclone disasters.

She said there was a “cycle in politics”, and her government had “defied gravity” in winning the state elections of 2006 and 2009.

She made no apology for her controversial decision to sell assets after the last election, while accepting it was “equally true” that she had failed to bring the community and the ALP along with her.

Ms Bligh said she hoped voters would see that she had never faltered during her time at the helm. “Queenslanders, thank you. It's been an honour,” she said, waving to her supporters.

Ms Bligh's predecessor Peter Beattie said Labor had seen a blood letting like no other, and would struggle to form an opposition.

He said Labor might have to copy the strategy that has handed the LNP a staggering majority, and shop outside parliament for its next leader.

“We don't have an opposition tonight. That's our problem,” he told the Nine Network.

Formal LNP opposition leader Jeff Seeney described the swing as “breathtaking” and “staggering”.

“This is the greatest victory of any state party in the commonwealth since federation.” mining magnate and LNP life member Clive Palmer told Sky News.

Retiring Labor minister Paul Lucas earlier predicted a swing to the LNP of up to 13 per cent.

“Let's make no bones about this ... this will be a devastating result for Labor, a very bad one that will take us quite a while to recover from.”

Mr Fraser earlier conceded he had lost his Brisbane seat of Mount Coot-tha, telling the Seven Network: “You can rise above politics on nights like tonight and there's no question that what's happening here is an extraordinary event.”

Julia Gillard tonight congratulated Mr Newman and paid tribute to Ms Bligh.

“The Gillard government has a big reform agenda and we will deliver for Queenslanders working with the new LNP government in areas such as health, education, skills, infrastructure and the rollout of the NBN as we build a strong economy for the future,” Ms Gillard said in a statement.

The Prime Minister praised Ms Bligh, particularly for her performance during last year's floods and cyclone disasters.

“Anna Bligh is a hugely talented leader who has worked hard each and every day to deliver Labor reforms for her state,” Ms Gillard said.

Also of key interest tonight was the performance of Katter's Australian Party, with the ABC predicting it had won two seats in its inaugural election.

The party had won in Mount Isa and retained the seat of Dalrymple, according to ABC election analyst Antony Green.

In Mount Isa, party founder Bob Katter's son Rob will become the third generation of his family to become a member of parliament.

Mr Katter said he was “stoked” at his win.

“I'm extremely proud and just ecstatic,” he said. “It's a great feeling.”

He said the party's result put them in a great position for the next election.

“Look out in three years time because we actually stand for something,” he said.

“These other two stand for nothing, they'll roll around on critical issues like jellyfish.”

Independents Liz Cunningham, in Gladstone, and Nicklin MP Peter Wellington look set to be re-elected, but fellow non-aligned MPs Chris Foley and Rob Messenger appeared to have been defeated.

The Queensland Greens failed to win a seat and suffered a fall in support.