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.

But Tariana Turia, co-leader of the indigenous Maori Party, said his remarks were "utterly racist and absolutely outrageous" and he should not be immigration minister if the Nationals win the November 8 election.

National Party leader John Key said the comments could be offensive and it was "totally appropriate" for Smith to apologise, but refused to rule him out as immigration minister.

The Marlborough Express quoted Smith as saying that a National Party government would expand the Recognized Seasonal Employer (RSE) scheme to include more Asians. The programme allows orchardists and winemakers to recruit up to 5,000 foreign workers a year to meet labour shortages.

Three-quarters of RSE workers last year were from Pacific island countries, which are given priority, but Smith said: "There are some skills in the vineyard that some people are perhaps better at - for example some of the pruning, some of the Asian workers have been more productive ... because their hands are smaller."

He also said that some employers of Pacific island immigrant labour were "having to teach them things like how to use a toilet or shower."

Smith issued a statement saying: "My comments, regarding the extent to which employers under the RSE scheme were being required to provide life skills training to RSE workers, were simply reporting the strong concerns expressed to me by many employers.

"Presented in the way they were, I can see that my reported comments may have caused offence. I sincerely regret that, because it certainly was not my intention." (dpa)