The Law Commission has called for the creation of a new legal entity to recognise different Maori governance.
In a 269-page report called Waka Umanga: A proposed law for Maori Governance entities, the commission calls for the creation of legal structures that better suit Maori needs.
The report says existing structures, including trusts and companies, do not adequately deal with the social and economic operations of Maori tribal organisations.
Commission president Sir Geoffrey Palmer said it was important Maori had greater input into their representative groups.
"Our view is that the Government has a responsibility to provide an accessible, generic model appropriate for the management of Maori collectively owned assets."
At present the Government sets strict guidelines on Maori legal entities.
The commission said the new structure could apply to broader Maori organisations other than iwi, including urban or hapu-based groups and would be voluntary, with Maori having final say on how structures were formed and whether they were used.
Law Commissioner Helen Aikman, who helped to draft the proposal, said it should reduce costs for both the Government and Maori.
The Maori Land Court would help with the formation of Maori organisations and in dispute resolution, reducing the role of the more costly and confrontational High Court, which could be used as a last resort.
"In the past the only resort in disputes has been to go to the courts, and I think there is widespread recognition that the court is not usually the best place to resolve these types of disputes."
She said the Government, driven by the settlement process, had favoured "large natural groupings" which did not always allow for the wishes of all groups involved.
"What has happened in the past is there has been inadequate recognition of hapu in tribal structures ... what we are trying to look for is a means to address meeting legal requirements and to create a means for Maori to have input."
She said the structures would help the treaty settlement, and "provide stable and long-lasting entities which actually reflect the needs of their members".
Strict mandating, accountability and transparency guidelines would be maintained while allowing Maori to determine variations based on group and cultural difference.
"We have left it to each tribe to decide what elements of its own tikanga [custom] should be reflected in its own organisation."
Law Commission Minister Mark Burton said the report "tackles the complex issue" of suitable legal models, obtaining mandate and receiving recognition from the Government and other agencies.
Report backs special legal set-up for Maori
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