Senior cabinet minister Steven Joyce is denying the Government's decision to block Chinese investment in Lochinver Station is xenophobic.
During last year's election campaign Mr Joyce accused the Labour Party of xenophobia when it said it would block the sale.
The Government denied permission for the sale this week but Mr Joyce told the TV3 programmeThe Nation this morning he stood by his claim Labour's attitude was xenophobic.
"They are against Chinese investment. They are the ones that have been out there saying that people with Chinese sounding surnames should not be able to buy property in Auckland," he said.
"What we did was apply the same tests that we apply to everybody. The test has not changed, and actually most New Zealanders know that we do apply a test of economic benefit. It has nothing to do with the particular country people are from."
MrJoyce said the Government was committed to encouraging overseas investment.