Prime Minister Tony Abbott's decision to record a video message to be played at packed-out St Patrick's Day business lunches in Melbourne and Sydney has backfired, with Irish business leaders labelling it as "patronising".

Uploaded to the Liberal Party's YouTube channel, the awkwardly-delivered message focuses on Irish humour and the stereotypes around drinking, rather than business acumen, which the lunches focus on.

Mr Abbott begins the message by declaring St Patrick's Day as "the one day of the year when it's good to be green" before waving his green tie at the camera.

"In pubs and clubs, homes and halls, Australians will celebrate this day for the Irish," he said.

"It's a great day for the Irish, and for the English, the Vietnamese, the Cambodians, and everyone else who cares to come to the party."

An Irish businessman based in Australia told the Irish Times that Mr Abbott's message was "patronising" and that he "would have hoped for a more business-focused message".

"There are so many good stories of Irish people in business in Australia, Mr Abbott's lack of awareness of any of that is astonishing," he said.

Mr Abbott concluded his message by apologising for not being "there to share a Guinness or two, or maybe even three".

It is not the first time Mr Abbott has come under fire for making an Irish joke. In June 2011, Canberra's Irish embassy demanded an apology over a speech he gave in which he made an off colour Irish reference.

During the speech to the Liberal Party faithful, Mr Abbott said the at the time Gillard government "was a bit like the Irishman who lost 10 pounds betting on the Grand National and then lost 20 pounds on the action replay".

The video, which was provided to the Irish Australian Chamber of Commerce, will reportedly not be played at the events in Melbourne and Sydney they were intended for.

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