Entsch changes tune on patrol boat tender

North Queensland federal MP Warren Entsch has played down his initial outrage over his government's decision to award a $594 million defence contract to a Western Australian company.

Mr Entsch said on Tuesday morning he was "gutted" to learn a Cairns-based consortium had missed out on the lucrative tender to build 21 steel-hulled patrol boats.

"The decision might have been made but I want transparency and some facts," he said. "I won't take this lying down."

By the afternoon, the Liberal National Party MP had watered down his comments following a briefing from Defence Minister Marise Payne.

"I still have concerns with elements of the process but I have a better understanding from the information presented to me as to why the Cairns consortium's bid may not have been considered as price-competitive," he said in a statement.

Mr Entsch said he wouldn't share the particulars until the contract was finalised.

WA company Austral was awarded the tender, but the boats have to travel back to the east coast to be deployed in the Pacific Ocean.

BSE Maritime Solutions owner Justin Parer spent two years and millions of dollars working on the bid, only to find out from a television news report that the Cairns tender had been unsuccessful.

Mr Parer told ABC Radio it was disappointing for North Queensland workers, particularly those at Clive Palmer's Queensland Nickel.

"We could've taken a lot of those guys on, but now unfortunately we can't," he said.

Up to 787 workers have been left without jobs after the Townsville nickel refinery shut its doors last month.

Mr Parer said had the Cairns consortium won the bid, it could have hired 200 people.

"I understand sometimes this is the way of things," he said.

"Hopefully they'll give us a debrief to tell us why we missed out."

Mr Entsch said the Department of Defence deputy secretary would travel with him to Cairns to explain the decision to the consortium.

Queensland Treasurer Curtis Pitt said the Turnbull government had thrown Mr Entsch under a bus.

"Every Queenslander has the right to be disappointed and as voters they will soon have their chance to say something about it," he said.