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The Government has rejected the bid for a partial settlement which would give a northern iwi the right ot make more claims in the future.
In doing so, Treaty Negotiations Minister Chris Finlayson said the government is committed to reaching settlements for historical wrongs with the five iwi of the Far North.
But he said the Government will not sign up partial settlements, which is what Ngati Kahu proposes in its draft deed.
''Unlike the previous Agreement in Principle signed between the Crown and Ngati Kahu, the draft deed seeks only a partial settlement, rather than a full and final settlement."
Finlayson said the 'partial settlement' that would ''allow grievances to linger''.
''Finality allows the Crown and iwi to draw a line under the grievances of the past and focus on developing a positive future together.''
The Far North settlements are complex negotiations involving five iwi; Ngati Kuri, Te Aupouri, Ngai Takato, Te Rarawa and Ngati Kahu. All five had a number of overlapping interests.
In January last year, the five iwi signed an agreement as the basis for deeds of settlement with each individual iwi.
But Ngati Kahu broke away from the four other iwi about a month ago, and asked to be allowed to come up with its own draft deed of settlement.
Ngati Kahu negotiators had instructions from hapu to extend the redress set out in the earlier agreements and to propose that further opportunities be reserved for Ngati Kahu to seek redress in to the future.
Finlayson said his meeting with Ngati Kahu yesterday had been ''constructive'', and the Crown will continue to work with the iwi.
The Crown could conclude full and final settlements with the four other iwi.
''Where Ngati Kahu has shared interests with other iwi, the Crown will protect those interests in a way that does not prejudice Ngati Kahu, but also does not delay the aspirations of other iwi to reach settlements on behalf of their people."
The complex claim includes 90 Mile Beach and forest land.
