The Sydney small businessman believes the Prime Minister's remarks were so out of keeping with the feelings of most voters, he decided to form a political party.

Although he has never been involved in politics, Mr Bourke, 39, said his instincts told him Mr Rudd had slipped up badly last year when he said:'' ''I actually believe in a big Australia - I make no apology for that. I actually think it's good news that our population is growing.''

Mr Bourke says the huge increases in population forecast by the federal Treasury in its third intergenerational report are a direct result of government policies, including record immigration levels and the baby bonus. Yet the only public debate is on how to deal with the consequences of so many more people, not whether such growth is desirable.

He said ''the extreme and radical rate of population growth'' meant more high-rise apartment blocks, overcrowded transport networks and loss of parklands were inevitable, and it was time for a national debate about whether this was what people wanted.

Mr Bourke said he and a small group of like-minded people expect to reveal the name and plans for the party within three weeks and where they want to run candidates.

He refused to say who else was involved organising the party or to detail its policies beyond cutting most levels of immigration, apart from the numbers of refugees, to ensure Australia's population would remain at about 23 million over the long term.

The entrepreneur Dick Smith has backed the plans to form the party as ''a good idea'' because it might finally force the government and the opposition to publicly discuss an issue they refused to touch.

''I reckon Kevin Rudd's realised nine out of 10 people don't want a big Australia,'' he said.