In a major backflip, the state government has surrendered to the demands of the upper house and will produce key documents relating to some of its most controversial policies.

The business cases for Sydney stadiums as well as the Powerhouse Museum relocation and a highly critical report into the state's child protection system will be handed over by 5pm Friday.

It came after the government's most senior minister in the house, Don Harwin, was censured over the government's refusal to produce the documents. He faced possible suspension from parliament.

But Mr Harwin was spared from being kicked out of the chamber after he told parliament on Wednesday that the government would agree to the demands of the upper house.

The decision prevents the issue being tested in court, which happened in the 1990s when the then Labor treasurer, Michael Egan, refused to release documents to the upper house.