Wellington - The man who could be New Zealand's next immigration minister was dubbed racist on Wednesday for remarks about Asian and Pacific island migrant workers in the country's orchards and vineyards.

Lockwood Smith, immigration spokesman for the opposition conservative National Party, which is favoured in next month's general election, said that Asian workers were more productive "because their hands are smaller" and Pacific islanders had to be taught how to use toilets and showers.

Smith, who was campaigning Tuesday in the vineyard and fruit- producing province of Marlborough, issued a statement regretting that his comments had caused offence but claiming he was reported out of context.

Wellington - New Zealand's APN News and Media Limited, publisher of the country's biggest newspaper, the New Zealand Herald, told staff Wednesday that it was reviewing its operations in reaction to flow-on effects of the economic downturn, a news report said.

The company, which also publishes seven provincial newspapers, the New Zealand Women's Weekly and The Listener, made the announcement to staff, Radio New Zealand reported.

Chief executive Martin Simons said the review and consultation process would affect a small number of staff across the whole company, the report said.

Wellington - The man who could be New Zealand's next immigration minister apologized Wednesday for giving offence with remarks about Asian and Pacific island migrant workers in the country's orchards and vineyards.

Lockwood Smith, immigration spokesman for the opposition conservative National Party, which is favoured in next month's general election, said that Asian workers were more productive "because their hands are smaller" and Pacific islanders had to be taught how to use toilets and showers.

Smith, who was campaigning Tuesday in the vineyard and fruit- producing province of Marlborough, said his comments were reported out of context.

Wellington - The index of New Zealand's top 50 stocks rose 2.1 per cent Tuesday amid cautious gains in other Asia-Pacific stock markets.

The NZX 50 index looked set for an even better performance after morning trading saw it up 2.8 per cent after rising 3 per cent on Monday.

But the price of the biggest stock, Telecom New Zealand, suffered a reverse in the afternoon, and the index ended the day up 62 points to 2952.

Wellington - New Zealand's inflation rate, boosted by soaring petrol prices, hit an 18-year high of 5.1 per cent in the 12 months ending September 30, official figures revealed Tuesday.

The consumers price index rose 1.5 per cent in the September quarter, Statistics New Zealand said.

The figures came as no surprise to analysts, who said that the inflation rate was likely to have peaked with consumer prices for fuel and food already beginning to ease.

Wellington - New Zealand's inflation rate, boosted by soaring petrol prices, hit an 18-year high of 5.1 per cent in the 12 months ending September 30, official figures revealed Tuesday.

The consumers price index rose 1.5 per cent in the September quarter, Statistics New Zealand said.

The figures came as no surprise to analysts, who said that the inflation rate was likely to have peaked with consumer prices for fuel and food already beginning to ease.