A former New South Wales policeman turned state MP has denied describing some senior Hunter Valley officers as the "Catholic Mafia".

Nationals MP for the state seat of Dubbo Troy Grant has given evidence on the third day of the Special Commission of Inquiry into how New South Wales Police and the Maitland-Newcastle Diocese handled allegations of child sexual abuse by two priests.

Previously Detective Chief Inspector Peter Fox said Mr Grant described senior officers as the "Catholic Mafia" because they are "aligned to the church".

But Mr Grant has told the court that the phrase grabs attention, and he would remember it if he had used it.

He said he had no reason to report any interference from the force at any time and was fully supported.

Mr Grant said his complaint is not about collusion between the NSW Police and the Maitland-Newcastle diocese, it is about the church alone.

The MP said the first he heard of Peter Fox's allegations of a cover-up was on the ABC's Lateline program last year.

Outside the hearing Mr Grant said he was fully supported in his investigations.

"I was never obstructed," he said.

"My investigations from a policing point of view went through as per normal as is reflected in the results achieved both in the criminal and the civil courts for my matters."

The MP was asked if he believed there was a Catholic mafia within the church itself.

"No, there were individuals who acted completely inappropriately, commensurate with any of their pastoral care," he said.

"I believe they acted illegally and I put that in a brief of evidence...to the Director of Public Prosecutions, who chose not to pursue that prosecution.

"It's a decision to this day I disagree with, but I don't hold any anger or frustration at the DPP for making that decision."

"I actually look at myself and question myself and carry a level of guilt that I perhaps didn't do a good enough job in relation to holding (to account) those people in the Catholic Church who covered up these crimes, as far back as 1974 and continued that behaviour while I was investigating in 1995."

Mr Grant says one of those he tried to have charged was a nun.

"A nun provided me with false evidence and played an active roll in tipping off the priest the night before I arrested him," he said.

Mr Grant says he is willing to give that evidence to the national Royal Commission into sexual abuse within institutions.

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