Pauline Hanson has lashed out at Waleed Aly and called him 'one-sided and biased' after his showdown with Dick Smith over One Nation's immigration policies.

The millionaire told Aly he didn't 'understand basic economics' during a discussion about how many people should be allowed to migrate to Australia each year.

'I don't bother watching him. I think he's very one-sided and biased in his opinion, he's not interested in listening to any real debate in this,' Senator Hanson told news.com.au

'I think he's rude. Do I really care what his opinion is? No.'

Pauline Hanson has called Waleed Aly 'rude' and 'one-sided' after he clashed with Dick Smith on The Project over One Nation's immigration policies

Waleed Aly and Dick Smith discussed immigration and population growth on The Project

When Aly pointed out the population was aging and that to support growing numbers of retirees, the younger generations would have to work and pay tax, Smith told him he 'didn't understand basic economics'

Smith appeared on The Project on Tuesday night to discuss his support of Pauline Hanson's immigration policies for Australia.

Having cleared up he didn't support Senator Hanson's take on Muslims being banned from immigrating to Australia, Smith said he wanted overall population growth limited.

But Aly pointed out the population was aging and that to support growing numbers of retirees, the younger generations would have to work and pay tax.

'You can come up with an immigration program that meant so a whole lot of young people would have to work with taxes at huge levels to support the retiring... otherwise you would have to level with us now and tell us how much tax you want young working people to pay so that the ageing population can have a retirement?,' Aly said.

Smith retorted: 'Yeah, that's absolute rubbish. You don't understand basic economics and all I can say is it's going to get worse and worse.

'Peter Costello said that we've got to have three per cent growth. That doubles everything every 25 years. It gets to most incredible figures. A billion people in the time of 200 years of modern Australia. That would be ridiculous.

Senator Hanson accused Aly of not being interested 'in listening to any real debate'

'I'm happy as a wealthy person to pay more taxes, to pay my tax now so we don't have to have a Ponzi scheme because it will affect young people.'

He wants the population to remain about 26 million.

Smith, who is from Sydney's north shore is planning to meet with Senator Hanson, who hails from Ipswich in Queensland, before Christmas, The Daily Telegraph reported.

Senator Pauline Hanson says she plans to meet up with Smith before Christmas

He liked the fact One Nation was the only party not focused on population growth, saying it would stop young people from being able to afford homes.

Although there were other policies of Senator Hanson's he didn't like, Smith said he was beginning to understand where her support came from.

But the former electronics mogul, once worth $50 million, has ruled out donating to One Nation.

Speaking on 2GB radio, Senator Hanson said her supporters were counting on her to create national stability and pride.

'You've met me, I haven't got two heads or anything like that,' she said.

'The whole fact is that I'm prepared to say these things out in the open - what I see as a problem in Australia. Whereas too many others are so gutless behind closed doors, in their chambers and all the rest of it. (They) will agree with me but won't come out and say it.

'We want our sovereignty, we want out nationalism, who we are as a nation, we are individuals. We want peace in our lives. We don't want people coming in telling us what to do, how to live our lives and becoming such a nanny state. People want stability as well.'