The Maori Party has opposed the latest legislation to overhaul Child Youth and Family as risking creating a "stolen generation" of Maori children.
Legislation that last night passed its first reading will clear the way for the second stage of major state care reforms that will replace CYF with a new Ministry for Vulnerable Children, Oranga Tamariki.
The law now prioritises placing a child with a member of their family or wider hapu. If that's not possible, officials must try to place the child with someone of the same tribal, racial or cultural background.
The overhaul says that should happen where practicable and reasonable, but removes the priority and puts emphasis on placing the child in a safe, loving home.
Maori Party co-leader Marama Fox hit out at that change in her speech in Parliament, saying it undermined the Government's claims of a "child-centred" approach.