Victoria University says it is reviewing its administrative procedures after its Flinders Street campus building was used to hold a fundraising dinner for an anti-Islam organisation last week.

The Q Society dinner, attended by conservative senator Cory Bernardi, was held on Friday night under tight security.

The location was even kept secret from some of its guests until the last minute, in order to avoid disruption from protesters, who had already picketed a bus chartered to bring people to the event.

Inside the building, a strong police presence patrolled downstairs, while guests upstairs had their ID checked and were issued with wristbands before entering.

The Q Society's platform opposes Islamic immigration and halal certification.

It made headlines last week after guest speakers at its Sydney dinner made anti-Islamic and anti-gay slurs.

Both the Sydney and Melbourne events were held to raise funds for the legal defence of two of the group's leaders.

The Q Society's president, Debbie Robinson, and Kirralie Smith — founder of the group 'Halal Choices' — are being sued for defamation by halal certifier Mohamed El-Mouehly.

Victoria University staff and students have lodged a letter of protest with vice-chancellor Professor Peter Dawkins, saying the society goes against the university's values of openness, and of welcoming students from all backgrounds.

Professor Dawkins apologised to staff and students on Monday, saying the university regretted "inadvertently" taking the Q Society's booking.

"Victoria University is a proudly diverse and multicultural institution," the email said.

"We are strongly committed to promoting diversity and cross-cultural understanding. There is a stark divergence of many of the Q Society's views from VU's values."

"Given that VU has a policy on venue hire which states that university facilities will not be made available for activities that are in conflict with or deemed incompatible with the university's values or strategic direction, we are taking swift action to review all administrative processes."

'Anyone brave enough to criticise totalitarian ideologies is our ally'

Hours later, Ms Robinson issued a statement defending the comments made at its Sydney dinner by cartoonist Larry Pickering, and former Liberal MP Ross Cameron.

Q Society president Debbie Robinson (centre) says the group does not censor guests at private functions. ( ABC News: Charlotte Hamlyn )

In an account of the dinner published in Fairfax newspapers, reporter Jacquline Maley quoted Larry Pickering as saying that while he could not stand Muslims, "…they are not all bad, they do chuck pillow-biters off buildings."

Ms Robinson said while the Q Society does not agree with every statement guest speakers make, it does not censor what its guests say at private functions.

"Larry Pickering comments about Islam and homosexuals represent his personal views. If he dislikes Muslims, Catholics, homosexuality or the All Blacks, that's his choice," she said.

He does not speak on behalf of Q Society. Larry and Ross are not members of QSA [Q Society of Australia] and stand their own ground."

"Anyone brave enough to criticise, mock and ridicule totalitarian ideologies and their followers is our ally. Those who eagerly make excuses for Islam's sociopathic prophet and the murderous ideology he spawned, are the enemies of equality, liberty and democracy."