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Australia is not a racist country but there are Australians with racist views, Finance Minister Lindsay Tanner says.
The Australian reports Mr Tanner said there's no doubt Australia still had a problem due to a number of attacks on Indian students.
He said he lacked detailed information about attacks that supposedly were racially motivated, adding it was often the case the final story was quite different to initial reports.
"I wouldn't want to put a particular view. There is no doubt there is a problem for Australia here,'' he told ABC television.
"The prime minister has acted to work with the states to actually develop a response and to ensure that we are tackling the issue in a measured way.
"Australian is not a racist country but inevitably there are people in this country who hold racist views. And there are people who are violent.
"As in all nations, there are bad apples.''
A spate of attacks on Indian students, especially in Melbourne, has strained relations with India which has said it is increasingly difficult to view such incidents as devoid of a racial motive.
Mr Tanner said the federal government was working overtime in concert with the states, particularly Victoria and NSW, to address these concerns.
"We are very conscious of the importance of Australia's image internationally and we are working hard to deal with these things,'' he said.
