Prime Minister Christopher Luxon says Winston Peters' remarks to a Chinese-born Green MP this week were racist but says he won't be sacking him as Foreign Minister.
Speaking at a public meeting in Tauranga on Friday, Luxon said Peters was playing a deliberate game to distract voters ahead of November's election.
"It's very easy to denigrate immigrants and to drive xenophobia in this country ... he's trying to talk about a problem that we don't have," he said.
"He may think he's Nigel Farage and Marine Le Pen and Pauline Hanson and Donald Trump, but ... we have legal immigration in this country."
Asked if he thought Peters' comments were racist, Luxon said: "Yes, I do".
Peters made the comments, which have been reported in global media and drew comment from the Chinese ambassador, in response to heckling from Green MP Lawrence Xu-Nan in Parliament on Wednesday.
"I know you just came here five minutes ago. Go back to your own country," he said.
"That's where they lie like a flatfish, but they don't lie like that here, all right? This is called democracy, unlike what you're used to," he said.
Peters characterised his comments as "defending New Zealand's democracy" and dismissed accusations of racism as "drivel".
China's embassy raised the remarks with the Ministry of Foreign Affairs and Trade, with opposition politicians calling on Peters to be sacked as Foreign Minister.
Luxon condemns Peters' remarks, stops short of sacking him
Speaking after the Tauranga meeting, Luxon told media Peters had caused "huge offence" to the Chinese-Kiwi community with remarks Luxon described as "clearly inappropriate".
"We've got a career politician whose creating language as a distraction to put attention back on himself. He knows exactly what he's doing," he said.
"He had a pretty bad week with New Zealand First last week, and I get that."
He defended Xu-Nan, saying he was a "full-equal Kiwi".
"He deserves to be able to say whatever he wants to say in Parliament, the same way Winston Peters says what he says."
NZ First leader, who is also Foreign Minister, made the remark responding to heckling during a speech in the House. (Source: 1News)
Despite the criticism, Luxon said he had confidence in Peters as Foreign Minister and would not move to dismiss him from the role.
"We're three months out from an election. Kiwis get to decide what happens next, and I just say to you, think very deeply about your vote."
Luxon played down a public spat between Peters and China's ambassador, saying the broader relationship was in "very good heart".
"We have a very strong relationship. It's a long-standing one over 50 years. We've seen spats between ambassadors and the foreign minister before."
Luxon used the exchange to mount an election pitch, saying he wanted all 20 cabinet seats filled by National MPs and urging New Zealanders to "be very intentional about your party vote".
He said he had not spoken to Peters directly but believed the NZ First leader had seen his public statements on the matter.
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