ACT leader Rodney Hide wants the controversial internet copyright law repealed and says he will recommend that to the Government.

"It's one of the stupidest new laws imposed by Labour and I am taking steps to get rid of it," he said at his party's annual conference in Auckland today.

"It should be repealed . . . it is fundamentally flawed because it breaches the principles of natural justice. It makes people guilty without trial and that is wrong."

Section 92A of the new Copyright Amendment Act has upset the internet community, which says it could force the closure of websites following any accusation of breach of copyright, even if it was not proven.

The Government said last month it would delay implementation of Section 92A until March 27 to give the community time to come up with a workable code of practice.

It said if agreement could not be reached it would suspend the section.

TelstraClear decided this week to pull out of the code of conduct that was being drafted, and Labour's communications spokeswoman, Clare Curran, said the deal had effectively been scuttled.

Ms Curran raised the issue in Parliament on Thursday but Mr Power said he was not going to pre-judge the negotiations and would wait for the deadline.

Ms Curran said the Government should intervene to broker an agreement that all parties would have to be part of.