Politicians in New South Wales have escaped a ban on consuming alcohol when parliament is sitting.

A parliamentary committee was asked to consider regulating how much politicians can drink after former Finance Minister Greg Pearce admitting to being affected by alcohol during a late night session.

One suggestion was to ban politicians from drinking any alcohol at all.

But the 12 member Upper House committee baulked at a total clampdown.

Instead MPs have been warned they could face disciplinary action for becoming intoxicated.

Greens MP John Kaye says the decision is unlikely to restore the public's confidence.

"This is a workplace that makes critical decisions. It should be alcohol free," he said.

"We wouldn't let crane drivers have alcohol on the job. Why would we let members of parliament drink?

"These are serious decisions that are being made by parliament.

"They should be made 100 per cent sober."

The committee has suggested that late night sessions could be avoided by having a set adjournment time.