The mastermind of the iron ore inquiry has joined mining magnate Andrew Forrest in blaming the mining industry for the Abbott government’s backdown.

Independent Senator Nick Xenophon last week raised the idea of a parliamentary inquiry into the price of iron ore, which Prime Minister Tony Abbott initially supported.

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The Abbott government has since ruled out the proposal, which the senator blamed on the mining sector.

The government has been “monstered” by lobbyists, Mr Xenophon told ABC radio on Friday morning.

“Who runs this country? What sort of democracy do we live in when you can have mining companies basically censoring the parliament?” he said.

Fortescu chairman Andrew Forrest foreign-owned companies BHP Billiton and Rio Tinto.

“We literally saw plane loads of lobbyists get flown in by the multinationals into Canberra and they never let up,” Mr Forrest told Nine News on Friday morning.

“You shouldn’t be allowed to totally manipulate governments, which is what I think has been done here.

“You saw the previous government flip, this government flip. The real question is do the multinationals have too much influence in this country and we should be allowed to ask the question.

“I understand the enormity of the pressure which the government came under.”

-with AAP.