The Newman government angered many organisations in 2012 by demanding they not criticise the government if they received state government funding.

Opposition Leader and former health minister Lawrence Springborg in June 2012 said the decision to cut back the $907 million funding to community health agencies was linked to the need to cut Queensland's debt.

However the move was condemned by not for profit health and welfare organisations when they finally received their contracts at the time, complaining the then-government was trying to silence criticism.

Health Minister Cameron Dick confirmed to Fairfax Media on Friday afternoon he had written to more than 60 welfare organisations removing the gag clause from their new service agreements.

The Liberal National Party included a phrase in the service agreements that effectively stopped groups criticising the government after they won office in 2012.

The controversial phrase said: "Where the organisation receives 50% or more of its total funding from Queensland Health and other Queensland Government agencies, the Organisation must not advocate for State or Federal legislative change."

"The Organisation must also not include links on their website to other organisations' websites that advocate for State or Federal legislative change."

Mark Henley, the chief executive officer of Queensland's Council of Social Services (QCOSS), said that simple change would help policy development.

"We are delighted to see the removal of these clauses," Mr Henley said.

"Because good advocacy is an essential part of developing policy," he said.

Karyn Walsh from Micah Projects, which runs community housing, welfare and homelessness care in Southeast Queensland, said the move was "an excellent idea".

"No government in a democracy should have 'gag clauses' because a not-for-profit [organisation] has a contract," Ms Walsh said.

"I think there is a big difference between 'gag clauses' and any time when you might be doing a piece of work where it requires confidentiality for a period of time," she said.

Ms Walsh said not-for-profit organisations must be able to advocate for change as an important part of their work for clients "whether they receive taxpayer's funding or not".

"To gag that is just not what a democracy really is."

Mr Dick on Friday said he believed the LNP's move was an attempt to stifle criticism of the government, which had at that time already begun to wind back staffing in health areas.

"This was an outrageous attempt to control public debate by telling non-government organisations that if they criticised the government it could affect their funding," said Mr Dick.

"It was a situation we promised to reverse if we won office and we are delivering on that commitment."

The previous LNP government had deliberate policy to reduce the size of the public service to reduce state government debt.

In the letter written to health and welfare organisations last week Mr Dick said non-government organisations "should be able to advocate around public health issues".

"The funding that you receive should not be conditional on your silence on issues where improvements to the delivery of public health can be made".

Mr Dick said clause 4.3 in the service agreement between Queensland Health and the organisations would no longer be implemented.