Mr Fitzgerald, 81, and former Supreme Court judge Alan Wilson, QC, will conduct a six-month inquiry into the CCC following a scathing review of its performance by a parliamentary committee.

His return to pubic life follows months of controversy surrounding the failure of CCC prosecutions of local government figures and police, culminating in the exit of commission chair Alan MacSporran last week.

Premier Annastacia Palaszczuk immediately vowed to implement any recommendations Fitzgerald puts forward to improve the CCC as a result of his inquiry, which will have a budget of $5 million.

Tony Fitzgerald’s 1989 inquiry into police corruption was a watershed in Queensland political history, leading to fundamental reforms in how the state was governed.

The Parliamentary Crime and Corruption Committee last year issued a damning report into a botched fraud case against eight Logan City councillors, prompting mounting criticisms that the CCC had lost its way.

Palaszczuk said she was following the committee’s recommendation the government “instigate a review of the CCC’s structure in regards to its investigatory and charging functions, and the role of seconded police officers at the CCC, as a Commission of Inquiry or similar, to be headed by senior counsel of sufficient standing to consider this structural basis of the CCC that has its roots in the Fitzgerald Inquiry”.

She said a vital consideration of the Commission of Review was its independence from the government.

“No-one can argue about Tony Fitzgerald’s independence,” the Premier said.

“To do its job, the public must have absolute confidence in the CCC and this Commission of Inquiry.”

However, LNP leader David Crisafulli said the inquiry, recommended by the LNP-chaired PCCC, fell short of royal commission into government integrity he has been calling for in recent days.

He said the recent resignations of Mr MacSporran and Integrity Commissioner Nikola Stepanov, and calls for an integrity probe by former archivist Mike Summerell who said he was forced out of the role in March, were an integrity “bin fire”.

“The state government has announced an inquiry into the CCC while refusing to open itself to an investigation,” Mr Crisafulli said in a statement.

“Queenslanders are smarter than this and won’t have the wool pulled over their eyes.

“Anything short of a full royal commission into the widespread systemic integrity issues ripping through the Queensland government is a cop out.”

The Local Government Association of Queensland welcomed the royal commission.

LGAQ president, Sunshine Coast Regional Council Mayor Mark Jamieson, said the LGAQ continued to call for compensation and an apology for the councillors impacted by the CCC’s actions in the Logan matter.

“Let’s not forget there was also a very real human cost to the travesty of justice that occurred in this case and those impacted by the CCC’s wrongful actions deserve an apology and compensation for what they endured,” Jamieson said.

Attorney-General Shannon Fentiman said Queensland owed Tony Fitzgerald a debt it could never repay.

“I am sure there is no-one Queensland trusts more with this important work.”

Palaszczuk said the terms of reference would be released later on Monday.

She said that the parliamentary committee had made “very serious allegations” about the CCC’s handling of the Logan council matter.

“The CCC itself is in need of investigation … There will be a Commission of Inquiry as recommended by the PCCC report … who better to oversee an inquiry … than the man who created it,” Palasczcuk said.