The owners of an Auckland motel say they are the victims of a dirty trick after they were accused by New Zealand First leader Winston Peters of advertising for cheap, illegal labour.

Peters today said the Rayland Hotel in Manukau had been caught blatantly abusing labour laws and ripping off student workers.

He pointed to an advertisement placed on a Countdown supermarket noticeboard which appeared to show the business was seeking "Asian student labor[sic]" and was offering $6.50 an hour - less than the minimum wage.

The ad, which was written on the motel's business card, also appeared to be offering wages under the table, or tax-free

"This is exploitation in broad daylight not in back alleys and behind closed doors," Peters alleged.

But one of the motel's owners, Anuj Gupta, said he had no knowledge of the ad.

"The business card definitely belongs to the business. But the advertisement is definitely not one of ours," he said.

"Our business cards are freely available to customers. Someone is playing mischief by taking one of those, scribbling a note, and [sticking] it on a community noticeboard."

Gupta said the motel paid its workers above the minimum wage. He did not know why or who someone might be trying to smear the business.

"No sane businessman would put [up] an advertisement like that."

A New Zealand First spokeswoman said the party had not spoken to the hotel owner or laid a complaint with labour inspectors.

The Ministry of Business, Innovation and Employment (MBIE) has been asked for comment.

Peters also criticised the Countdown supermarket chain, saying the company had seen nothing wrong with a notice which appeared to be advertising for illegal labour.

Countdown spokesman James Walker stressed that it was not a Countdown ad. Supermarkets' noticeboards were regularly checked and offensive material removed, he said.

A woman who ran the motel had contacted Countdown to ask with help in identifying the person who placed the ad.

"[The owner] alleges that she did not place any ad and this was an act of sabotage. We have suggested she raise a complaint with Police."

The minimum wage is currently $15.25 for adults and $12.20 for trainees.

- NZ Herald