The Queensland Premier has threatened to scrap the Palm Island Council.

Peter Beattie says the Council has constantly blocked his efforts to help the community - such as opening a new Police Citizens Youth Club.

He says the latest issue involves an attempt to misrepresent matters from a meeting last week.

Mr Beattie has told Parliament he offered to consider waiving a council debt - but council members are trying to interpret that as "attempted bribery".

"I'm unhappy. I am just shattered to be honest about their behaviour, but we will put the people of Palm Island ahead of this council and the Government will examine whether this council can continue because frankly it is not serving the people of that island," he said.