(Transcript from World News Radio)
The Prime Minister is facing a backlash after saying taxpayers shouldn't fund the "lifestyle choices" of people living in remote communities.
The Greens say his comments were "shockingly insensitive" to Indigenous Australians.
They go so far as to call them "racist".
The federal Opposition is calling for Tony Abbott to apologise.
But the Prime Minister says his track record shows he does the right thing by Indigenous Australians.
Phillippa Carisbrooke reports.
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In a radio interview on Tuesday the Prime Minister backed the Western Australian government's plan to close 150 remote Indigenous communities.
Tony Abbott said governments couldn't endlessly subsidise people who choose to live far away from schools and jobs.
"It's the job of the taxpayer to provide reasonable services in a reasonable way. Indeed to provide high quality services in a reasonable way. What we can't do is endlessly subsidise lifestyle choices if those lifestyle choices are not conducive to the kind of full participation that Australians should have."
The Prime Minister has defended his comment about "lifestyle choices".
Saying he was stating "a general principle".
"I was making the pretty obvious point that you and I are free to live where we choose. All Australians are free to live where we choose. But inevitability there are some limits to what we can reasonably expect of the taxpayer when it comes to supporting these choices."
The Prime Minister's chief indigenous adviser, Warren Mundine, says debate about the cost of services in remote communities is legitimate.
But he says that Mr Abbott's choice of words was wrong.
He says the PM needs to acknowledge that, and then move on.
"I've dealt with four Prime Minister in this area. I've had 30 years experience in the Indigenous space. And this Prime Ministers is genuine in his approach to closing the gap and making a better life for Indigenous people in Australia. But this is not the first he's mixed up his words. Just off the top of my head I can think of five other occasions."
Award-winning film director Rolf de Heer says it's not simply a case of Mr Abbott mixing up words.
He says the Prime Minister doesn't understand Aboriginal issues.
For that reason the director of acclaimed Indigenous dramas, including Ten Canoes, says Tony Abbott should step away from the Indigenous Affairs portfolio.
"The Prime Minister has shown he can't understand the issues. And therefore it is completely appropriate that someone who has some sensitivity about the issues take the role."
The Opposition's indigenous affairs spokesman, Shayne Neumann, has demanded a public apology for what he says are "deeply disturbing" and "highly offensive" comments.
The Greens' spokeswoman on Aboriginal and Torres Strait Islander Issues, Senator Rachel Siewert, also believes an apology is in order.
"It would require him to think about the insensitivity and inappropriateness of his words. And hopefully drive a better understanding by him of the importance of people staying connected to land."
Indigenous federal MP Chris Bourke says the Prime Minister has committed an "appalling gaffe."
The Labor member says Mr Abbott's approach to policies impacting Indigenous Australians living in remote communities stands in stark contrast to those effecting non-Aboriginals living in rural settings.
"When you start to see policy differentiation based upon race - which is what this Prime Minister is actually doing - then that is quite clearly racism. What else could it be?"
Speaking on Sky News, Aboriginal and Torres Strait Islander Social Justice Commissioner, Mick Gooda has renewed his call for a "sensible" national conversation on remote Australia.
"This is where people live. This is where they have lived for generations. And i think if we are going to make a case to move them it needs to be done with their consent, with their input."
But the President of the Indigenous Social Justice Association, Ray Jackson, doesn't believe a sensible conversation can be held with the Abbott government.
"There is nothing sensible about people who don't want to listen to the culture. Who don't want to listen to the history. Who don't want to our true way of life."
Mr Watson alleges Tony Abbott is attacking Aboriginal people.
"He terms himself as the Minister for Aboriginal Affairs. What he is in fact is is the Minister for Aboriginal Despair. All he ever does it do budget cuts and try to force people out of their homes. We are being attacked."
Asked if he saw why some people found his choice of words offensive, the Prime Minister said....
"I had a lively discussion with a fairly feisty journo on air. I'd invite people to listen to the discussion in its totality, to look at my record in its totality. I don't think there are too many Australian Prime Ministers who took the national Government for almost a week to a remote Aboriginal community. I did it last year, it's my intention to do it again this year. And so I'm very comfortable with my credentials when it come to doing the right thing by the Aboriginal people of Australia."
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