The research was commissioned by the Greater North Queensland Development Alliance, a newly formed coalition of local governments stretching North and West from Mackay.

Unveiling the figures from the AEC Group study at the opening of the North Queensland Economic Conference, Townsville Mayor Cr Les Tyrell said the research confirmed the ongoing suspicion in the region that Greater North Queensland largely subsidised South East Queensland and major capital cities.

"The research shows that while Greater North Queensland contributes more than $2 billion to the national economy annually, the Commonwealth Government spends an average of 29pc less than it earns from the region, on the region," Cr Tyrell said.

"And while the State Government has a better past record in returning revenue to projects in the North of the State, forward infrastructure planning announced in recent years greatly favours those living in the South East.

"The greater North Queensland region constitutes 3.1pc of Australia's population but generates 4.0pc of its Gross Domestic Product.

"It is a region of enormous economic potential for the entire national economy, yet it is held on the back foot by a lack of foresight and forward planning that would see a better use of funding generated in the region, used to grow its prosperous future."

Cr Tyrell said a more equitable funding formula must reflect the contribution regions make to the development and prosperity of Australia, the need to build social and physical infrastructure for future competitiveness and address the region’s broader social needs.

He said the Greater North Queensland Development Alliance is calling on Prime Minister Kevin Rudd and Premier Anna Bligh to convene a summit in partnership with local governments, industry and other interest groups to ensure a strategic dialogue is in place to grow the region into the economic powerhouse it has the potential to be.

"We don't want to be treated any differently to anyone else," he said.

"We accept that there has to be a fair and consistent basis for resource allocation.

"But equally, the North of the State can't continue to be treated as the poor regional cousins.

"It is essential that North Queensland receives a future commitment to infrastructure funding that makes better use of Northern revenues currently used to enhance Southern city lifestyles."

Cr Tyrell said a summit was a practical way of progressing the agenda for greater northern development and ensuring we capitalise on the above average contributions of the region to Queensland and Australia's growth.

Local governments in the region have invited industry, community groups and regional development bodies in the North of the State to join the Alliance to promote more cooperative government in the region.