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Federal Government backbencher Belinda Neal has stood down from a Parliamentary committee until a police investigation is over.

The Opposition wants Ms Neal suspended from the Government, after claims she pressured a staff member to change her sworn account of an argument at a Gosford nightclub earlier this month.

Prime Minister Kevin Rudd is resisting the demand.

But he has told Parliament that Ms Neal has decided to remove herself from heading a committee until the police investigation is complete.

"The Member for Robertson has advised the Leader of the House that she will not be chairing the House of Representatives standing committee while this process ensues," he said.

"She will be donating the allowance as chair of that committee to a local charity until such time that investigations are concluded."