The Labour Party has accused Prime Minister Christopher Luxon of failing to show leadership after a fresh row over remarks from his coalition partner that have been criticised as targeting ethnic communities.

Labour’s ethnic communities spokesperson Jenny Salesa told Awaaz divisive rhetoric directed at ethnic New Zealanders has no place in politics and that Luxon’s muted response only compounds the issue.

"Divisive comments which target our ethnic communities are completely unacceptable and have no place in New Zealand, let alone politics," she said. “"It’s even more shameful how quiet Christopher Luxon has been about his coalition partner's targeted comments, which only adds fuel to the fire."

Labour Party's Jenny Salesa is MP from Panmure–Otahuhu in Auckland. (Supplied photo)

The criticism stems from a series of controversial statements by New Zealand First leaders about migration, and India in particular, that Labour is calling out. NZ First leader Winston Peters has been accused of singling out a Green MP’s heritage during Question Time. 

In Parliament on February 18, parliamentarian Teanau Tuiono was asking a minister about climate aid to Pacific nations when he referred to New Zealand as Aotearoa, a Maori-language name for the country. Peters was seemingly unhappy that Tuiono hadn't used the English name, and took a jab at him for his Cook Islands ancestry. 

In a speech shortly afterwards, Hipkins accused Peters of "outright race-baiting" and allowing "direct racism" to be expressed in the debating chamber. "Attacks on our Chinese and Asian communities in New Zealand, attacks on our Indian communities in New Zealand, and just today, attacks on whether those who have Pasifika heritage are entitled to ask questions in this House..." the Labour leader and former prime minister said.

That parliamentary clash follows weeks of public debate and commentary from NZ First's Shane Jones, Peters’ deputy, about migrants and the proposed India–New Zealand free trade agreement (FTA). During media interviews, Jones has said New Zealand "is not going to be a dumping ground for people trying to come to New Zealand and set up New Delhi", ostensibly because of the FTA. He also said "we do not need any more Uber drivers".

Peters later said Jones "could have expressed himself better" while defending the broader policy concerns about migration. He insisted he supported targeted migration that benefits New Zealand, and that his deputy was just trying to articulate legitimate anxieties about immigration policy. 

The row over migration and ethnic commentary has also attracted warnings from deputy prime minister David Seymour that misinformation about the trade deal was fuelling "anti-Indian sentiment" among parts of the public, especially in South Auckland where thousands of Kiwis of Indian heritage live.

Labour says the reflexive linking of trade policy and cultural fears has created fertile ground for divisive political attacks, a climate Jenny Salesa suggested was on display in Parliament.

"As politicians, our words carry weight and we have a responsibility to lead with unity, not stoke division. It's equally important we call these divisive comments out when we see them," she said, adding a Labour-led government would "treasure our diversity" and promote a New Zealand "where all communities feel a sense of belonging".