The NSW Government's strict festival licensing regime is on track to be the subject of a state inquiry, with moves from the Opposition to then rescind it.

In January, the NSW Government announced 14 'high risk' music festivals would have to meet a checklist of requirements and be approved by a panel in order to go ahead.

The new regulations were prompted by five drug-related deaths at music festivals in five months and the government said the aim was to improve safety at these events.

But Labor's Shadow Minister for Music John Graham told Hack the scheme was rushed through parliament and could lead to a third of festivals leaving NSW.

He said he has the numbers in the NSW Upper House to pass a motion to hold an inquiry into the licensing scheme.

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Whatsapp Punters at the Rolling Loud festival in Sydney's west

"It will drive a discussion between the music festival industry and the government ministers who are responsible in New South Wales.

Unbelievably, that just has simply not happened.... Up until now, despite how important those issues are, the ministers and the industry have not sat down to sort this through.

After the inquiry, Mr Graham said he'll move a motion in the NSW Upper House to strike out the licensing scheme altogether.

He told Hack he's secured the support of at least seven independent and minor party MPs to pass the motion.

"I now believe there's support for both an inquiry and also support for striking out those regulations."

The festival and music industries have been critical of the new scheme, saying it will lead to skyrocketing, last minute costs for extra services and drive events out of NSW.

NSW Government says it wants festivals to thrive

In a statement, the NSW Customer Service Minister Victor Dominello - whose portfolio includes music festivals - told Hack, he wants the industry to thrive but safety is the main concern.

"The NSW Government wants music festivals to thrive - but serious drug related illnesses and deaths have demonstrated that we need to help make a small number of festivals safer," he said.

We are committed to continuing to work with music festival operators and other industry stakeholders to ensure the right balance is struck between great entertainment and festival safety.

The Australian Festivals Association supported Labor's moves and said the government should look to an ongoing Coronial inquest to recommend how to ensure safety at these events.

"We feel it's appropriate to wait for those findings to come down to make good decisions based on all of the experts who are going to come together for that inquest."