I dunno about you, but the term "dumb arse coconut" does seem like an insult rather than pacifika humour to me - but if a pacifika person says it about another pasifika person - what then? I don't think I'd like "dumb arse hori" for instance. It is worth watching the video to see that the easiest way to go is to just say, "Yes, that was wrong, I made a mistake, I am sorry and I apologise to everyone offended by my poor comment."
Go here to watch the video on TV3.
Hat tip - Kiwiblog