Wellington, Aug 6 NZPA - Opposition MPs will be allowed to use Beehive meeting rooms to hold an inquiry into banks.

Labour, the Greens and the Progressive Party are holding the inquiry into the difference between bank interest rates and the official cash rate set by the Reserve Bank.

They decided to hold it after government MPs used their majority on the finance and expenditure select committee to block an inquiry.

Previously the MPs were told the inquiry could not be held in a select committee room as requested.

Labour MP David Cunliffe said a compromise had been reached where meeting rooms in the Beehive could be used instead.

Mr Cunliffe said the approval followed further consultation between the Speaker Lockwood Smith, Greens-co-leader Russel Norman, Progressives leader Jim Anderton and himself.

Hearings would be held in late August and early September in the meeting rooms on the second floor of the Beehive.

"These are modern meeting rooms on neutral parliamentary territory. They are suitable for tele-conferencing and are easily accessible to the public," Mr Cunliffe said.

"We are grateful to the Speaker for his reconsideration of this matter."

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