The Prime Minister has told two groups at the centre of Ngapuhi's Treaty claims the Crown will step away from the process, leaving one leader happy and another disappointed at what he calls "another setback".
Tuhoronuku, the group which holds the Crown-recognised mandate to negotiate Ngapuhi's Treaty claims, and Te Kotahitanga, the group which opposed the recognition of that mandate, met Bill English in Auckland recently.
The meeting resulted in Mr English telling the two parties he would withdraw Treaty Negotiations Minister Chris Finlayson and the Office of Treaty Settlements from the process while Ngapuhi worked something out. They could go back to the Crown in October, he said.
Hone Sadler, chairman of Tuhoronuku, said it was a "good indication" the Crown was "finally recognising that we need to be in control of our own destiny rather than the Crown dictating".
"They've been intervening and that's what the problem is, there's been too much intervention on their part.