"Registration and microchipping are the way forward, " said Battersea Dogs Home director Laura Jenkins.
The Welsh government is to consult on plans for compulsory microchipping later this year.
The charity plans to offer free microchipping to dog owners in Wales before the regulations come in.
Research carried out by MORI for the NCDL also found 17% of councils now offer a microchipping scheme.
The UUP's Roy Beggs said microchipping was a good long-term method as tags could drop off the animal.
Earlier this month Northern Ireland became the first part of the UK to introduce a law on microchipping.
In Northern Ireland, dog owners are required to have licences for their dogs, and compulsory microchipping was introduced in April 2012.
Agriculture committee chairperson Stephen Moutray of the DUP said most of the discussion in committee had centred on the proposed compulsory microchipping.
The Scottish government has said that, while it recognised the benefits of microchipping, there was "no evidence compulsory microchipping would effectively tackle welfare issues".
Another Labour MP, Michael McCann, asked how microchipping dogs from "responsible registered" breeders would affect "irresponsible, backstreet breeders" of "dangerous status or weapon dogs".
Meanwhile, Scotland's Cabinet Secretary for Rural Affairs and the Environment, Richard Lochhead, said in March there were no plans in Scotland to introduce compulsory microchipping.
Environment Secretary Caroline Spelman responded that ministers were consulting on extending laws on dangerous dogs to all private property and the compulsory microchipping of all puppies.
Compulsory microchipping came into force in Northern Ireland last year.
Compulsory microchipping was introduced in Northern Ireland in April 2012.
The Welsh Assembly Government has consulted on compulsory microchipping of dogs, and although it has yet to announce a formal decision on whether to proceed, it believes there is a "high level of support" for the idea.
She called for a tightening of microchipping and the registering with passports of horses destined for slaughter for food production in the UK. She repeated statistics showing that 6% of horses killed in Britain later tested positive for the drug bute, which is not cleared for human consumption.
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