The anti-monarchist group Republic has urged the British government to follow Australia's example and scrap knights and dames from the honours system.

Republic spokesman Graham Smith thinks the UK honours system is also in need of major reform.

He said in any country these titles are silly, completely at odds with modern democratic values and wide open to abuse by the political classes.

Labour's Phil Goff argues our honours system needs a review, but there's no way he'd deny Richie McCaw a knighthood.

Barry Soper: Does McCaw deserve a knighthood?

"You've got to recognise the skill, the talent and the leadership Richie McCaw has shown."

"Of all people who have been suggested for a higher honour, he's really earned his stripe."

But Phil Goff thinks New Zealand needs a system of recognition people understand, and for most honours now people don't have a clue what the initials behind them mean.