The Prime Minister has avoided answering questions in Parliament this afternoon about his relationship with businessman Donghua Liu.

Photo: RNZ / Alexander Robertson

Yesterday John Key was forced to confirm that a National Party fundraising dinner at which he met Mr Liu was held at the businessman's home.

This afternoon during Question Time Labour Party MP David Parker asked whether Mr Key knew that Donghua Liu's citizenship application was in process at the time of the dinner.

John Key replied no.

David Parker then asked whether immigration issues were discussed that night.

Mr Key replied that the dinner was a fundraiser and he went there in his capacity as the leader of the National Party.

Labour's Shadow leader of the House Chris Hipkins appealed to the Speaker saying if Mr Key attended the dinner and discussed ministerial matters such as immigration, then he was attending in his capacity as Prime Minister.

But David Carter would not accept the appeal.