The independent MP who initiated a parliamentary censure of Stephen Conroy believes the senior Labor figure can remain opposition defence spokesman provided he apologises to the military commander of Operation Sovereign Borders.
Senator Conroy used an estimates hearing this week to accuse Lieutenant General Angus Campbell of being engaged in a political cover-up.
The accusation, later withdrawn, drew the ire of military chiefs and the federal government.
Andrew Wilkie won the support of coalition and crossbench MPs on Wednesday for a motion admonishing Senator Conroy for bringing into question the general's character and integrity.
Mr Wilkie said it was entirely appropriate to quiz General Campbell about Operation Sovereign Borders.
"But what happened was, Senator Conroy accused General Campbell of being complicit in a cover-up when there is no evidence," he told ABC radio on Thursday.
"It was a direct attack on his character and it was entirely unwarranted."
Mr Wilkie says Senator Conroy should face the media and publicly apologise to General Campbell.
"Say he made a mistake, that he'll learn from it and he'll get back to work."
Labor frontbencher Chris Bowen expressed confidence in Senator Conroy's ability to remain defence spokesman.
Australian Greens MP Adam Bandt said parliament had lost its moral compass on Wednesday, slamming the Liberal-Labor tit-for-tat over Senator Conroy's comments.
"Yesterday was an exercise in political theatre that diminishes this parliament," he told reporters in Canberra.
Instead, more concern should have been shown over the death of asylum seeker Reza Berati during a riot at the Manus Island detention centre.
