Federal Liberal MP Peter Lindsay has dismissed the Queensland Government's five-point plan for Palm Island as a recipe for more of the same.

The State Government's plan includes restoring order, re-building infrastructure and managing alcohol problems.

But Mr Lindsay, whose electorate covers Palm Island, has told federal Parliament he believes a radical change to land tenure on the island could provide a better answer.

"I strongly support making changes to land tenure on Palm Island," he said.

"It's the key to improving the self esteem of islanders and to bringing about local integration.s

"It will provide an opportunity for economic participation and home ownership, something islanders cannot even dream about under the deed of grant in trust tenure."