A Catholic bishop made a "tragic mistake" in letting now convicted pedophile priest Gerald Ridsdale remain in the ministry, the current bishop for Ballarat says.

The Catholic Church knew about child abuse complaints against Father Ridsdale as early as 1975 but let him remain as a priest and moved him to other parishes, a Victorian parliamentary inquiry has heard.

Police told former Ballarat Bishop Ronald Mulkearns of complaints against Ridsdale in 1975, but he was moved to other parishes, the inquiry was told.

Ridsdale should have been removed when a child abuse complaint was first made, current Ballarat bishop Paul Bird said.

The church has confirmed 67 abuse complaints against the now convicted pedophile.