One Nation MP Barnaby Joyce says the alleged use of a racial slur against an Indigenous journalist would be unacceptable, but questions the veracity of the uncorroborated claim.
Nine Newspapers has reported the allegation that an unnamed person in One Nation headquarters was watching leader Pauline Hanson's televised National Press Club address in June and yelled out that NITV journalist John-Paul Janke was a "black c--t" as he asked Hanson his question.
The allegation came from sacked former One Nation staffer Charles Swindon, who said he was at One Nation headquarters at the time and witnessed the incident.
Swindon was credited with a senior role in the campaign to elect One Nation MP David Farley to federal parliament , but has since been fired.
"Mr Swindon has left the party and people have to make their conclusions about whether this can inspire a form of resentment," Joyce told SBS News.
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"I was not there; I was at the press club, and this is a story I cannot corroborate. A story that doesn't stand up I am always very sceptical about. It needs to be seen in terms of exactly what was said, if it was said."
The party's treasury spokesperson said it was difficult to comment on a hypothetical situation and he was wary about giving it more oxygen.
"All I can make a comment on is an allegation. It's almost like a hypothetical," Joyce said.
"In terms of that hypothetical, it is not something that is acceptable; if a person said that around me, I would say, 'You cannot talk like that.'
"I have also said in the past to people, 'You can't talk like that, you can’t think like that.'
"I would not say it, and I would not tolerate it."
Joyce said he also wanted to address critics who say One Nation's policies on Indigenous spending are racially divisive.
One Nation wants to abolish the National Indigenous Australians Agency and scrap all specific Indigenous welfare programs.
"I don’t think there is a view of racism inside One Nation, there is definitely a view about stronger oversight on the spending of money," Joyce said.
"We have a view of inequality, people who are treated differently because of the colour of their skin. People should be helped because of the situation they find themselves in, there are also white people who are facing poverty.
"I reckon I know vastly more about life in Aboriginal Australia than the vast majority of other non-Indigenous people in Australia."
Hanson's office was approached for comment but declined to respond, instead directing SBS News to One Nation headquarters, which has not yet responded to questions.