Sir Peter Leitch says a woman "misinterpreted some light-hearted banter" after she claimed he made racist remarks towards her at an Auckand winery.
Lara Bridger published a video on Facebook on Wednesday claiming the man known as "The Mad Butcher" told her Waiheke Island is a "white man's island" and that she should leave.
Ms Bridger was at Stonyridge Vineyard with family on Tuesday when she saw Sir Peter at another table.
She says they exchanged hellos before her group went outside. Shortly afterward, she says he approached them and made "disgusting" comments.
"He said specifically to me, 'this is a white man's island, you need to go. You need to acknowledge that this is a white man's island.'"
Ms Bridger posted a Facebook Live video in which she explained her version of events. The video went viral, getting around 100,000 views before it was deleted.
In the video, Ms Bridger explained through tears what took place.
"He sat there with his f***cking family, thinking it's all good to racially abuse someone that's with their family. That is *** disgusting, I am so upset."
In a statement Sir Peter said he was "extremely disappointed that a young woman on Waiheke Island had misinterpreted some light-hearted banter he had with her".
"I was joking with her group about not drinking too much because there were lots of police on the island. She said that she was Tangata Whenua and could do what she liked.
"I responded with a joke about it being a white man’s island also. This was not a serious comment and was only ever intended to be light-hearted banter."
However Ms Bridges says Sir Peter offered her money after the exchange took place.
"He has a really disgusting mentality… all he could say was to offer to pay me money and to offer to pay for our drinks."
"He knew he f***ed up because then he came out and started offering me money says 'oh what's your number, what's your number, I'll give you a cash donation'. No I don't want a cash donation. I want you to realise that you f***ed up."