The New South Wales Premier says he has been "very distressed" by the furore surrounding the State Government's decision to ban a documentary about gay parenting from being shown during school hours.

Over the last week the Government has been criticised for ordering schools not to show the film Gayby Baby during class hours, after the Daily Telegraph ran a front page story about Burwood Girls High's plans to screen the film.

Premier Mike Baird was confronted at a budget estimates hearing about the issue by Labor MP Penny Sharpe, who has three children with her female partner.

Ms Sharpe asked Mr Baird whether he would admit that the Government's decision sent a "terrible message" about acceptance of same-sex families.

"Personally Penny, I have to say I was very distressed by the way this played out," Mr Baird said.

"I have found it personally distressing that someone would think I would tell anyone in New South Wales that they have less value than anyone else."

Loading...

Critics have accused the State Government of pandering to tabloid media outlets and conservative interest groups who want to promote the message that gay and lesbian families are not normal.

Mr Baird told the hearing the Government did not object to the content of the film, but opposed Burwood Girls High's plan to suspend classes to show the film as part of Wear It Purple Day — which is designed to promote acceptance of LGBTI youth.

"It doesn't relate to the content, it relates to shutting a school down for it," Mr Baird said.

The Premier said he had now seen the film "and there were some very good lessons in it".

He clarified that schools could show the documentary during the lunchbreak and could show sections that were relevant to Personal Development, Health and Physical Education (PDHPE) curriculum in class.

Ms Sharpe said that position was a "wind-back" from what the Government had said last week.