Foreign Affairs Minister Winston Peters has been rebuked by the Human Rights Commission for using the term "Indian givers" in an interview.
Peters was speaking to Sky News Australia this morning about New Zealand's long-standing offer to take 150 asylum-seekers from Australia's offshore detention centres.
He questioned why the offer was made in 2013 by former Prime Minister Sir John Key but said it remained on the table because New Zealanders weren't "Indian givers".
He followed that with: "By Indian givers I don't mean the great nation of India. I mean, it's taking something back that was given by way of present in the first place. We don't do that sort of stuff."
The term, which actually refers to Native Americans, is considered derogatory and offensive.
A spokesperson for the Human Rights Commission said when politicians made public statements that singled out ethnic groups ¬ to make a political point, it could have a stigmatising effect.
"We encourage our public officials to refrain from using language that perpetuates racial and cultural stereotypes.
"There are now more than 200 ethnic communities in New Zealand. We are one of the most ethnically diverse countries in the world. This is a source of strength, but it also means we have to make an effort to maintain harmonious relationships between people," the spokesperson said.
Comment was being sought from Peters.