Newman defamation payout sparks review

Legal indemnity guidelines for Queensland government ministers will be reviewed after former premier Campbell Newman reportedly cost taxpayers more than half-a-million dollars in a defamation case.

Mr Newman and his attorney-general, Jarrod Bleijie, were sued by Hannay Lawyers in 2014 for more than $1 million at the height of his government's war on bikies.

The ex-premier publicly declared lawyers representing bikies were "part of the criminal gang machine", while Mr Bleijie later clarified Mr Newman's comments to insist they referred specifically to Hannay Lawyers.

Premier Annastacia Palaszczuk on Monday confirmed a settlement had been reached, but wouldn't comment on reports it involved a payout of $525,000.

Ms Palaszczuk said her director-general would review legal indemnity guidelines for government ministers so cabinet could consider on Monday whether they should be changed.

"I am very concerned about it," she said.

"And that is why I believe that if you are a minister of the Crown, you need to take some responsibility for what you say in public.

"And that is why my government will give serious consideration to the redrafting of those guidelines."

Ms Palaszczuk wouldn't comment on reports the payout would have been lower had Mr Newman and Mr Bleijie publicly apologised, only saying new guidelines would "put a great deal of value on taxpayers' money".

She said cabinet currently decided on a case-by-case basis whether to indemnify ministers against legal action and the decision to fork out taxpayers' money for Mr Newman and Mr Bleijie rested with the former government.

The defamation case was sparked after Mr Newman was asked about a law firm advising its bikie clients not to show up to court with other bikies in case they breached the government's anti-association VLAD laws.

The VLAD laws, which were new at the time, made it illegal for three or more members or associates of a declared criminal gang to gather in public.

Mr Newman replied: "These people are hired guns. They make money from people who sell drugs to our teenagers and young people.

"They are part of the machine, part of the criminal gang machine and they will see, say and do anything to defend their clients, try and get them off and indeed progress their case."

Mr Bleijie, in an attempt to defend Mr Newman, later said the premier was responding specifically to a question about Gold Coast-based Hannay Lawyers.