Opposition Leader Bill Shorten has called for Peter Dutton to be dropped from Cabinet following his joke about climate change in the Pacific, but Tony Abbott has defended his minister.

Key points: Shorten calls for Dutton to be dropped from Cabinet

Shorten calls for Dutton to be dropped from Cabinet Abbott praises Dutton for efforts to increase Australia's humanitarian intake

Abbott praises Dutton for efforts to increase Australia's humanitarian intake PNG prime minister Peter O'Neill the latest to criticise the remarks

The conversation between the Prime Minister and Mr Dutton was picked up by a microphone before a media event and has sparked anger among Pacific Island leaders.

During the exchange Mr Abbott laughed after Mr Dutton quipped about rising sea levels in the Pacific.

Mr Shorten, who is campaigning in the Canning by-election, said the Prime Minister had to decide on Mr Dutton's future.

"Mr Abbott now has to make a choice. Are those sorts of views the views you want of Cabinet ministers in this country?" he said.

"Does he choose Mr Dutton or does he choose the Australian people? You can't choose both."

But on Saturday, a day after the controversial joke, Mr Abbott praised the Immigration Minister.

Mr Abbott told the Nationals conference Mr Dutton should be congratulated for his efforts to increase Australia's humanitarian intake.

"If there's one thing that should be remembered about Peter Dutton's week, it's that this is the week that he masterminded the plan to bring 12,000 needy people to this country," he said in a reference to Australia increasing its intake of Syrian refugees.

'Communities are losing their homes'

A spokesperson from the office of Papua New Guinea's prime minister Peter O'Neill questioned if Mr Dutton would be laughing if it were his own family "about to lose their home because of climate change".

"Mr Dutton has admitted that climate change is real and that it is ruining Pacific Island communities," the spokesperson said.

"If he fails to urge his Government to act now it would demonstrate extreme disregard for people at risk.

"Many communities are losing their homes to rising sea levels and people are losing their lives to extreme weather brought about by climate change.

"Would Mr Dutton be laughing if his family were about to lose their home because of climate change?"

The spokesperson said they hoped the Australian Government would support the Pacific Island nations' strong stance for action on climate change at the United Nations Climate Change Conference later this year.

The president of Kiribati lashed out at Mr Dutton on Friday, labelling him morally irresponsible for the "vulgar" joke.

Responding more in "sadness" than anger, Anote Tong said Mr Dutton had "to search his own soul".

"What kind of a person is he? As long as there is this kind of attitude, this kind of arrogance in any position of leadership, we will continue to have a lot of tension," he said.