Labour leader Andrew Little broke with tradition by picking Labour colleague David Shearer to join him on the Intelligence and Security Committee.

Labour leader Andrew Little is standing by a "captain's call" to exclude minor parties from a committee scrutinising spying agencies, despite claims he's "broken the law" by doing so.

Little broke with tradition by choosing foreign affairs spokesman David Shearer to sit alongside him on the committee.

In previous terms, Green Party co-leader Russel Norman has taken the second opposition slot. United Future and ACT have also been represented in the past, but have now also been excluded.

It's left the Greens fuming and opened a schism between the two opposition parties that hope to form a government together in 2017.

Norman said it was a "bad call" and is upset he learned of the decision through the media.

The Greens say Little has broken the law as well as convention.

The Intelligence and Security Committee Act 1996 states that the leader of the opposition must nominate representatives "following consultation with the leader of each party that is not in Government or in coalition with a Government party".

A Green Party spokesman said this was Little's first "big stuff up" and are calling on him to back down.

LITTLE UNMOVED

Little said he would "consult" with the Greens about the committee's deliberations. That would fulfil his legal obligations.

"I am satisfied I have acted correctly and got the right person for the job. I know their criticism about whether I notified them sufficiently in advance. But we, as two parties in opposition will deal with that," he said.

"I have my regular routine meeting with the Greens tomorrow and no doubt this issue will come up and we will talk about it further then ... there is certainly no obligation to appoint anyone from any particular party.

"I know they upset, I understand the reasons why they are upset. And we will talk about that in a mature way."

He earlier said he chose Shearer because Norman was standing down as co-leader in May.

He had rejected appointing co-leader Metiria Turei because he wanted someone with "skills, understanding and experience."

"I'm disappointed [the Greens learned of the decision through the media]. That was a failing on my part and I will deal with that as I have to. But I have made the decision and I stand by it."

He refused to say if he will apologise.

TUREI'S FURY

Greens co-leader Metiria Turei will not be easily mollified however.

She said Little had made "a captain's call and he's wrong."

"He has acted unlawfully and I expect to get a phone call from him quite soon. My experience speaks for itself. I've been here in Parliament as a leader for five years, not five minutes.

"The Greens should be represented. We are the critical eye on intelligence and security matters."

NZ First Winston Peters was not pleased about the decision either. He said he was not consulted by Labour.

"The idea that the security and safety of this country can be reposed in the two old parties is rather a nonsensical one given their past record ... the two clubs situation can't go on, it has to be widened

'THE RIGHT CALL' - KEY

Prime Minister John Key has backed Little.

"I wasn't surprised totally, because I think Labour made absolutely the right call," he said this morning.

"We fully support it."

The major review of the security services is due to get under way this year, and Key has hinted it could lead to tougher surveillance laws.

He added: "A range of opposition voices from the minor parties could railroad the process.

"I don't think the committee was terribly constructive over the last few years, I think it was used less as a way of constructing the right outcomes for legislation, and more as a sort of political battleground."

Key will chair the committee with GCSB and SIS minister Chris Finlayson and Justice minister Amy Adams his other nominees.

Norman said the intelligence review would be scrutinised by two parties that were in Government over the course of a decade-long illegal spying scandal.

"It's certainly true that Labour and National do have a lot of experience running a spy agency engaged in illegal spying," he said.

The review comes as the GCSB invites applications for their top spymaster.

Director Ian Fletcher will leave the job at the end of the month, and the State Services Commission today advertised the vacancy, which is a 2-3 year contract.

With top-level security clearance needed, the job is only open to New Zealand citizens. Applications close on March 9.