Critics of his plans to shake-up the system have called for more money rather than the root-and-branch change he has suggested in the planning green paper.
Lord Falconer said: 'I believe planning departments are under-resourced and we need fundamental change in the system.'
The extra cash could come from three areas, he suggested: 'Greater fees, reallocation of resources from within council spending and from central government.'
Committee chair, Labour's Andrew Bennett, asked if this was because it has already been turned down. He claimed without more money the planning system would be left 'in the worst of both worlds' - given more to do but without the resources.