David Seymour has withdrawn a Bill that would have repealed parts of the law which made insulting and offensive speech unlawful.

Instead, he's drafting a new one which would force tertiary institutions to "take all reasonable steps to protect academic freedom and free speech" or face funding cuts, following a number of events being shut down over claims of health and safety fears.

"I think there's a more urgent need now because it's become clear that the most pressing threat to free expression in New Zealand is not our current laws," Seymour told Newshub Nation on Saturday.

"Our current laws are not bad - I think they could be improved, and that's what my previous Bill would have done. The most pressing threat is that some people are genuinely concerned about their health and safety obligations as a person conducting a business undertaking, and they are not sure if they can let people speak on their premises. Others are abusing it."