Principals say the issue of religion in state primary and intermediate schools will not go away, despite the Ministry of Education ditching plans to issue guidelines.

Pat Newman of the Principals' Federation says the proposal did not change the 19th century piece of legislation that the guidelines would have been based on.

Mr Newman says the logical thing to do would be to change the Education Act to give primary and intermediate schools the same rights as secondary schools, which allow boards to make decisions that fit the needs of their schools and their children.

Meanwhile politicians of all persuasion are wading into the debate, with National's Bill English calling it a victory for parent power and commonsense.

United Future's Judy Turner is also welcoming it, saying it is not for the Ministry to dictate what sort of religious education happens in schools.

Green MP Keith Locke is taking a different tack, arguing schools should cater for all religions on a rotational basis. He says that will build tolerance and multi-cultural understanding between students.