The Newspaper Publishers Association says a proposed media regulator should be independent to prevent interference from the government.
Submissions closed on Monday on a Law Commission review of the complaints process and the regulation of media.
The commission wants to replace the Broadcasting Standards Authority with a new body involving a range of organisations that would be partly funded by the government.
NPA chief executive Tim Pankhurst says he is very uncomfortable with the thought of the new council being funded from that source.
He says it would tempt the state to get actively involved with the new body, which would limit the freedom and independence of the media.
The NPA says a proposed media regulator should be independent to prevent the Government from getting involved.