The federal Opposition Leader, Brendan Nelson, said yesterday that the merger would significantly strengthen the prospects of the new Queensland Liberal National Party defeating the Bligh Labor Government at the next state election.

"We will all now work to see the best interests of the non-Labor side of politics are best served, both in Queensland and nationally," Dr Nelson said.

The merger was formalised on Saturday when both state parties voted to create a single new entity.

This was despite last-minute moves by the federal Liberal organisation, supported by Dr Nelson, to defer the vote because of a dispute over who would become president of the new party.

The party elected as president Bruce McIver, the former Queensland Nationals president. Lawrence Springborg, the former Nationals parliamentary leader, will lead the party in State Parliament.