Federal MP George Christensen says increases in royalties on mining companies, combined with the global downturn in commodity prices, is crippling the resources industry.
Yesterday, mining support company Hastings Deering announced it would cut 200 jobs, with most coming from its Mackay and Rockhampton operations in central Queensland.
Speaking in Parliament, Mr Christensen, the Member for Dawson, said cuts in the mining services industry are becoming more regular.
"It's almost happening now every month, we see mines shutting down," he said.
"The impact this is having on the mining service sector in Mackay is diabolical.
"The policies of this Government in introducing a mining and carbon tax has led to the decimation of the mining industry.
"It's having real impacts across my electorate - people losing jobs now on a weekly basis, struggling to put food on the table, having large debts they cannot service any more, all because of government policy."
However, the state's chief government geologist says there is still a bright future for Queensland mining, despite talk of a downturn in the industry.
The State Government will spend part of its $30 million exploration program conducting surveys throughout the Cloncurry, Julia Creek and the Dajarra-Boulia areas.
Chief geologist Brad John says that work is vital to make Queensland attractive for explorers.
"I think it's ... an important role for Government to do that overall risk reduction by capturing data and then making it available to industry," he said.
"Exploration - we're in competition with the rest of the world and if we want to make Queensland attractive to explorers, we have to do these sorts of things by capturing regional data and lowering risk."
He says Queensland is well known as a mining destination across the world.
"We have world standard production and areas with high prospectivity and there's continuing demand from Asia at the moment," he said.
"The prices are not very great, people are finding it difficult to get equity capital but the basic demand is still there, so I still see a bright future for Queensland."