The Bishop of Dunedin has apologised to the city and asked for forgiveness after admitting the Catholic Church failed to protect children from paedophiles disguised as men of the cloth.

And, as more victims continue to come forward, he has also added his voice to growing calls for churches to be included in the Government's upcoming Royal Commission into historic abuse.

The comments by Bishop Michael Dooley came during a wide-ranging interview, days after the Otago Daily Times revealed more historic offending by Fr Magnus Murray and two Christian Brothers in Dunedin.

Bishop Dooley said the reports had left him shocked and with a feeling of ''profound sadness'', but he did not dispute the details.

''I don't dispute anything.''

The publicity had already prompted ''a handful'' of previously unknown victims of Fr Murray to contact the Dunedin diocese office in recent days, he said.

They were speaking for the first time as a result of the recent ODT coverage, he said.

The church also had to accept its share of the blame for the way it handled offenders, by moving them to new parishes and exposing more children to harm, Bishop Dooley said.

''We didn't do as good a job as we should. I have no problem at all in apologising for the people who have suffered for the way we have handled it.

''There's no other way around it. It's a failing,'' he said.

His comments also followed the release of a grand jury report in Pennsylvania, which showed 300 clergy abused more than 1000 children - and potentially thousands more - over decades.

The global headlines had prompted a scathing letter of condemnation by Pope Francis to the world's 1.2billion Catholics on Monday, in which he condemned both the ''atrocities'' of child sex abuse and cover-ups by the church.

''We showed no care for the little ones; we abandoned them,'' he said.

Bishop Dooley said yesterday the offending and systemic failure highlighted in Pennsylvania was on a different scale to that in Dunedin, but ''there will be more'' victims hidden within the Dunedin diocese.

In Pennsylvania, the Catholic Diocese of Harrisburg had responded by naming alleged offenders and announcing it would strip the names of bishops who failed to act from church properties.

Bishop Dooley said a similar course of action could follow in Dunedin, including renaming Kavanagh College (see story below), but only if an independent inquiry - such as the Royal Commission - found evidence to support such a move.

''If it came out that there was credible evidence, then that would be a case for doing something,'' he said.

The latest revelations in Dunedin had also strengthened his belief churches needed to be part of the upcoming Royal Commission, he said.

An independent inquiry was needed to interrogate churches' responses to sexual abuse and lift the ''shadow'' from them, he believed.

That had been the view of all New Zealand's bishops since March, but ''I would say it is firming up'', he said.

''There's no use us doing it ourselves ... we would be seen as policing ourselves.

''If there's any questions, then we do need to have a state inquiry.''

In the meantime, Bishop Dooley said there was now a need for ''healing and reconciliation'' within the Dunedin diocese.

He was considering a ''liturgical gathering'' as a way of ''acknowledging the abuse and acknowledging our failings''.

Parishioners had been speaking directly to him, and to other priests across the diocese, either to vent or just to talk, he said.

''There's been support - people coming up and saying 'We know you're going through a tough time' - but there's also people who want the church to be transparent, and to deal with it in a just way.''

The fallout had been felt by the diocese's priests as well, he said.

''It's been bad,'' Bishop Dooley said.

''It's probably the one issue that's had the most impact on the morale of priests, because it's indefensible. You can't defend it, the abuse of minors, of children.''

Not ready to condemn predecessor

The Bishop of Dunedin is not yet ready to condemn a predecessor, but says the actions of a priest who aided a paedophile Christian Brother would ''definitely not'' be appropriate today.

Bishop Michael Dooley yesterday defended former Dunedin bishop John Kavanagh, who had jurisdiction over Fr Magnus Murray and Br Desmond Fay at the time of their offending in Dunedin.

Fr Murray, who in 2003 admitted offences against four Dunedin boys dating back to 1958-72, was sent to Australia by Bishop Kavanagh for treatment after details of his offending were raised in 1972.

Bishop Kavanagh later endorsed Fr Murray's return to public ministry in the North Island, where more victims have since emerged.

Bishop Kavanagh also had ultimate jurisdiction over Br Desmond Fay, who was principal at Christian Brothers Junior School when he allegedly abused a young boy who later committed suicide.

Br Fay, who also taught at St Edmund's School in South Dunedin, was sent overseas after the intervention of a Dunedin Catholic priest, Fr Kevin Kean.

Bishop Dooley said there was no record of Fr Kean's involvement, and nor was there any evidence Bishop Kavanagh knew of Br Fay's offending or Fr Kean's role.

Fr Kean's intervention seemed to be ''off his own bat'', but would ''definitely'' not be tolerated today, Bishop Dooley said.

However, he defended Bishop Kavanagh's handling of Fr Murray, insisting the priest's crimes had not been concealed.

While the North Island communities of Waihi and Ngaruawahia were not told of Fr Murray's dark past, Bishop Kavanagh had sent Fr Murray for treatment and met parents of some of his Dunedin victims.

''I can't see any concealment there in that regard.''

But, as more victims of Fr Murray contacted the church, other victims of Br Fay have also contacted the ODT saying they, too, were abused by him when he was at St Edmund's.

Bishop Dooley had earlier referred all questions about Br Fay to the Christian Brothers order, saying he had no jurisdiction over the order.

Yesterday, he confirmed the Bishop of Dunedin was ultimately responsible for Christian Brothers, including Br Fay, while they were based in the diocese.

But, based on Bishop Kavanagh's actions in removing Fr Murray from Dunedin, it appeared ''he knew nothing'' about Br Fay.

If evidence to the contrary emerged, the call by a survivors' network to rename Kavanagh College could be considered, he said.

''I don't see any evidence for that at the moment.''

But Bishop Dooley was clear on another call - Fr Murray should be defrocked.

The 91-year-old was still alive, living as a priest in retirement in Auckland.

''Yes, it should be done,'' Bishop Dooley said.