Federal Liberal MP Tim Wilson won't be referred to parliament's powerful privileges committee over his handling of an official inquiry into Labor's franking credits policy.
Labor last week asked lower house Speaker Tony Smith to review Mr Wilson's chairing of the hearings after accusing him of having "improperly interfered in the free exercise of the committee's functions".
This would amount to Mr Wilson being in contempt of the House of Representatives, Labor argued.
But Mr Smith said the penal power of the House was significant and should be exercised with restraint.
"I appreciate the concerns that may have been raised by the actions of the member for Goldstein," he told the lower house on Thursday.
"And the actions could be seen to have caused damage to the committee's reputation and the reputation of the House committee system more generally.
"However, I do not believe that the evidence has been presented to demonstrate that the member for Goldstein's actions have prevented the committee, in a fundamental way, from continuing to fulfil its basic responsibilities."
But Mr Smith gave the MP a slap on the wrist for initially requiring hearing inquiry attendees to sign an online petition against the Labor policy, and for holding a public hearing at the same a group opposed to the policy was meeting.
"His actions have not always conformed with what I see as the conventions usually observed by chairs of House committees," he said.
Mr Wilson should also have not have tolerated any Liberal Party material being handed out at the hearings, the speaker added.
Labor also took issue with Mr Wilson failing to declare that he is a director and shareholder of a particular company in a timely way, but Mr Smith said he would leave it for the committee of privileges and members' interests to probe the claim.
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