With the Prime Minister promising that he would not be intimidated by mining companies, Xstrata's verdict to hang up mining projects has activated further squabbling in Parliament over the Government's new profits tax.

After a series of motion to suspend Question Time appears to descend into shambles, it delayed any questions being put to the Government by more than 30 minutes. Opposition Leader Tony Abbott moved a motion to have both leaders argue the tax after Xstrata declared it would stop two Queensland projects because of the proposed tax.

Almost $600 million assigned to develop two Queensland projects has been suspended by Xstrata. The company says 3,250 jobs would have created from this project but now they been put at risk.

An independent Member for Kennedy Bob Katter, whose electorate is affected by Xstrata's decision also tried to have the issue debated after Mr. Abbott was gagged. He too was shut down and then turned from the chamber for an hour after objecting the move to gag him.

"This is causing real pain to Queensland families", Mr. Abbott said. According to Mr. Rudd, the Government would not be intimidated by the mining companies. The projects were put on hold because of other matters such as land access and power supply.

The Government then tried to guide debate towards its stimulus efforts and its contribution to yesterday's national accounts result, which saw the economy grow 0.5 % in the March quarter. Mr. Rudd used the result to criticize the Opposition's decision to block stimulus measures.