Katter party to run dairy farmer in Gympie

The Katter party hopes a Queensland dairy farmer can win the seat which will be vacated by a government MP who suffered a nervous breakdown.

The Liberal National Party's Member for Gympie David Gibson has ruled out running again, citing mental health issues.

His decision came after he was forced to stand down from parliament's select ethics committee following a political rival's revelations about his past.

The MP later admitted he'd made "mistakes" and acknowledged he had faced unspecified charges in 1999, but no conviction was ever recorded against him.

Katter's Australian Party on Tuesday said Kenilworth dairy farmer Shane Paulger would contest the seat.

Mr Paulger said he had much to offer regional Queensland, which had suffered under Labor and LNP governments.

"With a combination of KAP and Palmer United candidates in the next parliament, we can make a difference, especially when it comes to asset sales," he said in a statement.

He said Premier Campbell Newman had effectively put the government up for sale to the highest bidder by scrapping caps on political donations.

Katter's Australian Party is expected to announce more candidates in coming weeks.