Weeks after Katter's Australian Party's motion to introduce relocation sentencing was voted down in the Queensland Parliament, the state's councils have called for youth diversionary centres to be established on remote state land.
Both groups see these facilities as ways of helping address youth crime.
"Our members voted last year for this as a positive step that could help tackle re-offending rates and provide specific services and support needed to break the cycle of crime," Local Government Association of Queensland chief executive officer Alison Smith said.
"Councils have suggested small centres could be developed in remote areas, where these young people can be given a chance in life by providing them with both social and accredited vocational skills in a safe environment away from negative influences.
"Young people who are disengaging or have disengaged from the education system could then be provided with alternative pathways into further education, employment and social engagement that is culturally appropriate and inclusive."
Mareeba Shire Council mayor Angela Toppin said the youth justice system needed to change.
"The current system of either sending young people to formal youth detention centres, where they often become further criminalised by the fellow inmates or are given some form of community service is not working for many of these vulnerable young members of society," she said.
She pointed to the state government acquisition of The Lakes Station north of Hughenden and of Bramwell Station on Cape York as ideal for the development of small centres.
"These facilities could be set up across the state, and while it is envisaged that they be multicultural in nature, should specific groups wish to establish culturally specific facilities this should also be accommodated," she said.
"These facilities should not be seen as places of punishment but rather places where young people, who have often missed out on opportunities because of the environment they are in, could develop the necessary skills to succeed in life.
"Something must be done to address the increase in youth crime - the current approach is having limited success."
'Tough love'
KAP leader Robbie Katter said the announcement of almost $500,000 in funding for two programs aimed at targeting youth offending in Townsville and Mount Isa were another bandaid on the state's crime crisis wound, and said 'tough love' was needed.
Mr Katter labelled the government's programs as another 'feel good' method unlikely to bring about real change.
KAP's motion to parliament was around endorsing the party's relocation sentencing model, an alternative to traditional and existing juvenile detention.
"It would see recidivist youth offenders ordered by courts to serve long-term sentences in highly rehabilitative environments in remote locations," Mr Katter said, adding the party also wanted to see minimum sentences introduced.
"We want real offenders to be dealt with real repercussions for their heinous acts," he said.
He was disappointed that the Labor government and LNP opposition each provided only one MP to speak on the topic, saying it was an insult to people across Queensland crying out for meaningful change in youth sentencing.
Mr Katter said 95 per cent of councillors at the LGAQ 2002 conference had voted for a policy change of this type.
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"It is very concerning that the LNP, who continues to claim that it represents regional and rural communities has shown a complete disregard for this practical solution", said Mr Katter.
"And, once again Labor has shown its true colours, offering no regard for the wellbeing of Queenslanders, and continuing to turn a blind eye to the issue."
Mr Katter advised that despite the decisions surrounding the policy, the fight would not end there.
"Delivering real consequences is a massive part of the KAP's push", said Mr Katter.
"On top of that however, the KAP's Relocation Sentencing Policy would deliver an avenue for these troubled youth to turn their lives around.
"They will be given the chance to be given some direction, to learn real life skills, and to hopefully become respectable, active members of society.
"Quite frankly the stage government does not have enough money to continue to roll out weak-willed programs that tinker around the edges of the big issues at play.
"They need some tough love."