THE State Labor Government has raised the cost of living and has failed Gladstone, according to the Queensland Liberal National Party (LNP) leader Campbell Newman.

“I was at a growth summit a year ago hosted by Premier Bligh and Gladstone was clearly identified as an area with housing affordability issues,” Mr Campbell told The Observer.

“It (Gladstone) was identified as a place that was going to go ahead really quickly with the liquefied natural gas (LNG) developments and the government still haven't done anything and that was a year ago.

“I think it (LNG industry) is obviously going to be a huge boost to Gladstone, but as we have seen in the past with some of these booms I'm concerned about the level of infrastructure planning and support.”

Mr Newman said he was concerned about the affordability of housing and the pressures on the cost of living for families in the Gladstone area.

“This happened in the late '70s and '80s where people couldn't get accommodation and in fact workers were living in tents and caravan parks and sadly it sounds like that is where Gladstone is heading again because of the government's failure to deliver,” he said.

“What it does is create a pecking order where the people who can pay get in and the people that are most vulnerable and disadvantaged get forced out because they can't afford to live in Gladstone anymore.

“I'm concerned about the affordability of housing and about the pressures on the cost of living for families in the Gladstone area. We have seen interesting reports coming out about the cost of living and this has been a result of the state government's actions.”

Speaking to The Observer yesterday, Mr Newman also gave a guarantee the RG Tanna Coal Terminal would not be sold under a state LNP government.

“I can guarantee we have no plans to sell it (RG Tanna) and if we were to sell any asset in Queensland we would tell people going into an election,” he said.

“We have no plans to privatise RG Tanna and I say to the people of Gladstone if you vote Labor you may well wake up and find RG Tanna sold.”