Justice Minister Annette King made the announcement yesterday and said the panel, supported by a citizens forum, would begin work immediately.
The establishment of the panel has upset National Party deputy leader Bill English.
"If Labour really wanted a process that was to be fair and enduring, then other parties would have been consulted.
"National has had no input into the process. This is little more than a desperate measure by a government trying to cover up more than three years of dishonesty over election spending."
Prof Geddis said the panel had just been appointed and had not yet met.
But it had already decided it would take a completely independent approach and make statements as it saw fit.
Any recommendations relating to the electoral finance regulation would reflect the views of those "ordinary voters" participating in the citizens forum.
The panel's role would be to provide the forum with the information it needed to reach a fully-informed decision, he said.
Prime Minister Helen Clark has made no secret of wanting public funding for political parties' election campaigns and repeated her wish again this week in Parliament.
With New Zealand First leader Winston Peters, and his party, facing both privileges committee and Serious Fraud Office investigations over whether large donations should have been declared as part of election expenses, the call for public election funding has become stronger.
Mrs King said both the panel and forum would provide an independent, non-political perspective on the reform options.
The forum was established as part of an agreement between the Green Party and the Government during the negotiations around the Electoral Finance Act.
Green Party co-leader Dr Russel Norman said it would include representatives from every electorate in the country and be resourced as to provide a considered opinion about the future of political party and election funding.
"Forums such as this have been used overseas to consider and review similar issues. The great beauty of a citizens forum is that it takes the debate away from the political parties and hands it over to a group of citizens without a vested interest."
Mr English said the appointments of the panel were significant and had been made within three months of a general election.
"Labour has flagrantly broken the convention around such appointments."
The Electoral Commission was to meet on Monday to discuss what to do about New Zealand First's breach of electoral law, NZPA reported.
The commission said in a statement yesterday it had received formal correspondence from the party's president about its annual donation returns for 2005-07.
"This correspondence will be considered by the commission at a meeting on Monday afternoon, along with options for possible further action," it said.
"We are unable to disclose the contents of the letter [or options] until, at earliest, their consideration by the commission."
Another political party is in trouble over its 2007 donation returns.
The commission said the Democrats for Social Credit had no reasonable excuse for the late filing of its donation return and the matter would be referred to the police.
The Democrats for Social Credit filed its return on May 19, whereas the deadline was April 30.
