Winston Peters and Shane Jones' comments during a debate raise "huge red flags" for the community, leaders say.

Winston Peters - after initially saying nothing was wrong with his and Shane Jones' comments - has now backed down after the Mexican Ambassador raised concerns.

The minister claims immigrant Greens MPs are bringing "alien ideas and woke-ism" to Parliament as they accuse him of xenophobia.

NZ First's Shane Jones yelled "Send the Mexicans home" during a debate on Tuesday.