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Lolly probe ends, no evidence kids ate toxic substance

Police have ruled out any criminal wrongdoing after 15 north Queensland schoolchildren became so sick they were hospitalised.

The students from Bluewater State School in Townsville came down with nausea, abdominal pain and lightheadedness after a bus driver allegedly gave them lollies from sealed packaging on Thursday morning.

He was stood down but by Friday afternoon investigators confirmed nothing untoward had happened.

"Investigations have uncovered no evidence that the children involved in yesterday's Bluewater incident were exposed to a toxic substance," Queensland Police said in a statement.

"There is no indication a criminal offence has occurred."

All children have since left hospital.

The driver, who works for Sunbus, had been stood down and was co-operating with the probe.

Late on Friday, a spokesman for Sunbus's parent company Kinetic said it was pleased the children had been discharged but was still waiting to receive the outcome of the police probe.

Queensland Health, the Department of Education Queensland, the Department of Transport and Main Roads and the Queensland Police Service were involved in the investigation.

"Our highest priority remains the ongoing health and welfare of affected students, their families and carers. Guidance or counselling services will be in place for as long as it is required," Education Queensland said in a statement earlier on Friday.

"The school remains open and operating as normal.

"No further details can be provided for privacy reasons."