"So yeah, they just protest because that's all they've got to do all day."
About 15 police officers were on hand to control the protesters.
The venue overlooks Auckland Grammar's playing fields, with mostly floor-to-ceiling glass doors that open out to the balcony.
Pushing and shoving broke out as officers tried to move the balcony group after they started banging on the walls and windows. They confiscated the group's loud speakers, but did not remove the protesters.
AAAP spokeswoman Sarah Thompson said the group was protesting over the Government's welfare reforms and job-creation policies.
"We wanted to come here to send a message to John Key and his mates that these cuts are not okay," she said.
"We won't lie down and take it."
Mr Key arrived at the function about 6.45pm and was joined by MPs including Judith Collins and Paula Bennett.
Former MP and Mana Party member Sue Bradford said the group was carrying on in the spirit of Nelson Mandela and standing up for those most vulnerable in society.
No arrests were made, and protesters left voluntarily about 7.30pm.
A spokeswoman for Mr Key said: "It was a National Party Northern Region Christmas function attended by around 300 people.The protesters didn't in any way disrupt the event."