Tollner denies making homophobic slurs

The newly reappointed Northern Territory treasurer has denied making homophobic comments which led to his resignation last year.

Dave Tollner was forced by his colleagues to resign in August after it was revealed he had made the comments to a gay staffer.

But at his swearing-in ceremony on Wednesday as he returned to cabinet, he denied the incident ever took place in a heated exchange with a News Corp Australia journalist.

"There was no argument. There was no homophobic rant," Mr Tollner said.

"There was no incident in a back room where a staffer became upset."

He accused a local newspaper of fabricating the comments.

"I didn't apologise because I didn't make those comments publicly, and the comments I did make were not put into any sort of context at all," Mr Tollner said.

"There was no attack on anybody. There was no calling a staffer `a pillow biter' or `a shirtlifter'."

At the time of his resignation he called his parliamentary wing colleagues "a nest of vipers" and accused them of "throwing knives in (his) back".

He said he resigned to maintain harmony within cabinet, and that Chief Minister Adam Giles asked him to return.

"I was very uneasy at the thought," Mr Tollner said, but said he was convinced that following last week's failed leadership coup the Country Liberals parliamentary wing was united, and his colleagues wanted him back.

"Those events that occurred this week, whilst not pretty in any way, shape, or form, have been a turning point for the government and probably a wake up call for us all," he said.

He said he was thrilled to be reappointed treasurer, as well as the minister for lands and planning and for mines and energy.

"It shows an incredible amount of faith by the chief minister in me and I thank him for that," Mr Tollner said.