Updated | Coure to continue as shadow multiculturalism minister after alleged racist remark in parliament

Opposition Leader Mark Speakman is standing by Oatley MP Mark Coure, who was forced to apologise after making an alleged racist remark to a new State MP of Vietnamese descent in State Parliament.

Mr Speakman said in a statement, "Mark Coure made a comment today that he did not intend to be racist. He subsequently withdrew the statement and apologised in the chamber".

"Mark has met with and personally apologised to the Member for Cabramatta, which was the right thing to do.

"Mark made an outstanding contribution to our rich multicultural community during his time as Minister. I'm confident he'll continue to do so now as the Member for Oatley and Shadow Minister."

Earlier

Mark Coure, the MP for Oatley and former minister for multiculturalism, was forced to apologise after making an alleged racist remark to a new State MP of Vietnamese descent n State Parliament.

The comment was directed at Cabramatta MP Tri Vo, a lawyer, who was asking a "Dorothy Dixer" in Question Time on Wednesday.

Mr Coure interjected, "I thought that bloke worked in catering".

Minister for Women Jodie Harrison overheard the remark and called for Mr Coure to withdraw the "offensive racist comment".

"There is no place for racism in this place," she said.

The Speaker asked Mr Coure to withdraw the comment, which he did, saying he did not intend to offend.

At the end of Question Time, Mr Coure made a further statement:

"During Question Time today I made a comment towards a new MP. It was a poor attempt at humour and was not intended to cause any offence," he said.

"I withdrew the comment and apologised to the member.

"As a former Minister for Multiculturalism, I celebrate our diversity in our society, it is our greatest asset.

"The comment I made was not intended or considered to focus on an individual's background.

"I again withdraw the comment and apologise."

Mr Coure, who is now the shadow minister for multiculturalism, told the Leader he later went to Mr Vo's office and apologised again.

Mr Coure said he "understood" that Mr Vo had accepted his apology.

Mr Coure said he did not wish to make further comment.

Labor later issued a statement from Mr Vo saying the comments were in poor taste.

"But that's not going to deter me from doing my job and representing my community of Cabramatta," he said.

"That's what I intend to do - continue to be a strong voice and advocate."

Treasurer Daniel Mookhey said it was up to all all MPs to ensure the culture of parliament improved, describing the comments as "inappropriate and offensive".

"I have had people in parliament deliberately mispronounce my name. It is not pleasant. It is offensive," he told reporters.

"As a parliament, we should do better."

Greens MP Jenny Leong called for Mr Coure to extend his apology to all members of the lower house, saying his comments had caused offence to "many" people in the parliament.

"There is no place for that kind of racist comment in the chamber."

- With Australian Associated Press