The Auckland University Students' Association (AUSA) is disappointed that the organisation will be allowed at the university's orientation, despite serious student concerns of racist material.
But a university spokesman said the university has no reason to prevent the group from taking part in the expo.
"The university promotes a safe and inclusive campus environment. We have no evidence there is any form of discrimination or racism."
Race Relations Commissioner Dame Susan Devoy says she will keep an eye on the group.
"I am a Kiwi with European heritage and I'm very proud of my Irish roots - but being proud of my heritage doesn't mean limiting the rights of anyone else."
The group has responded to concerns on Facebook stating "It seems like there has been some gross misunderstanding of what our club is about and who we are," and that they want to promote European culture on campus through activities such as medieval re-enactions.
A self-described spokesman for the group, Adam Holland, said it was a completely innocent club and there was no indication it had racist intentions.
"It's about unity, not separatism," said Holland.
Holland made a name for himself when, whilst vying for Auckland mayoralty last year, he dressed in a Muslim jubba and yelled "Allahu akbar" and "vote for me" at an Auckland University mayoral debate.
He said he doesn't see the link between using Celtic symbols and being racist.
"It's pretty silly. To link Celtic images to racism, that's hateful," said Holland who told NZME the aim of the group is "to have a good time, celebrate diversity" and freedom of association.
Holland said AUSA is against the group because it is scared it is racist, "when it's not".
"They are being the hateful ones. AUSA should be ashamed of themselves and issue an apology."