"Warnings had been given,very clear-cut warnings. Then that bill came out I just exploded with rage,"he said.
"After being told again and again and again,he puts it in the house without any permission from anyone or any clearance from anyone.
"Clearly Fraser wants to continue his crusade and we think it is best to give him this freedom."
Mr Katter described Senator Anning as a friend,and again defended the"final solution"speech on Thursday.
"Ninety-nine per cent of what Senator Anning has been saying is solid gold. However,there is one per cent of what he is saying that is totally unacceptable,"he said.
The unacceptable part was Senator Anning's division between European and non-European migrants,Mr Katter said.
"Clearly that is racist - clearly our policies are anti-racist,"he said. KAP's policy is to preference migrants who will integrate into Australian society.
Mr Katter denied the decision to dump Senator Anning was in response to Labor reconsidering its habit of preferencing KAP at the election.