He said he was not being racist and international students were important, but a debate was needed about the purpose of a university in New Zealand. There was a risk that fewer places would be available for New Zealanders because of the need to cater for international students.
"They (universities) tell us they don't have enough dough so, disproportionately, they are racing into the crescent from India through to China and bringing in more and more international students. I don't want to have a situation where there is no room for Kiwis at the intellectual inn."
The Auckland University website shows international students make up about 13 per cent of its student population.
Almost a third (1,576) are from China, with significant numbers also from Malaysia (591), the United States (529) and Korea (456).
Tertiary Education Minister Steven Joyce said of Mr Jones' remark: "It's a very strange comment to make if you're an economic development spokesperson and you're supposed to be about creating jobs."
Mr Joyce said the international education sector was worth $2.5 billion to the economy and contributed 28,000 jobs.