The new policy comes after reports last year showed a crisis within the department -- and statistics showing that of 46 Maori children victims of homicide since 1990, 42 were killed at the hands of their own family members.
Since 1990, almost half of child homicide victims have been Maori, yet Maori make up only 15 per cent of the population.
The thrust of the new policy steers away from retaining tribal links for at-risk children exclusively, a concept advocated by Associate Social Services Minister Tariana Turia, who has criticised CYF previously for placing Maori children with strangers.
The new policy allows for finding a safe placement within iwi, but not as the exclusive option.
Maori welfare organisations having contracts with CYF will now have to demonstrate they are improving the lives of Maori children and the department's own social workers will have to do better, Mr Douglas said.
CYF social workers do not have to be Maori, but must be able to cope effectively with an increasing number of Maori children and their families.
"It's not about teaching people to be Maori," Mr Douglas said.
"It's about teaching them how to understand the differences that people have so they might better be able to assess the circumstances that those children are in and work out ways to help them with solutions that are going to be relevant to them and are going to be permanent for them."
Mr Douglas said the strategy was designed to focus CYF's thinking and work on a clear outcome.
"Whether it is through direct services supplied by the department, or indirect services through our many iwi and community providers, we want to ensure that all Maori children will be safe.
"At the same time we want them to be given the opportunity to thrive in their communities and reach their full potential. An important element of this is ensuring that a child is in a stable and caring environment," he said.
The strategy also aimed to make sure a child's connections to their cultural heritage was preserved and that whanau or providers who care for the child have the necessary support .
"To ensure we achieve these outcomes, all our existing and future operational strategies, all our contracts and all our community partnerships must be able to demonstrate how they support us in achieving these goals, Mr Douglas said.
"We want to improve our ability to work with Maori and so we'll be developing ways of helping social workers better understand the circumstances of the children they deal with so they can identify, assess and develop effective solutions.
"We would also like to build the capacity and capability of iwi and Maori service providers. Our strategy will look at developing a programme that focuses attention on building organisational leaders who are role models and can inspire others to provide excellent levels of service," he said.
Child, Youth and Family was working on a plan for putting the general principles of Te Pounamu into action.
Associate Social Services Minister Tariana Turia said today her interpretation of the CYF strategy was that it again put the emphasis on placing children within the family rather than with strangers.
The legislation CYF operated under was very clear that where possible children should be placed in "kin-based care".
That had been the policy of previous governments as well as this Government and would continue to be so, she told National Radio.
"It's only in exceptional circumstances that children will be placed with others."
However, in the past 10 years the majority of pakeha children and more than 50 per cent of Maori children had been placed in "stranger care".
"Now that tells me that the department is not acting within the legislation...and so the strategy really is about refocusing them so that they will take heed of the legislation and...previous documents..."
She had discussed her views with Mr Douglas, Social Services Minister Steve Maharey and senior managers at CYF.
"They share the view that children, wherever possible, should be placed in kin-based care, of course with the assurance that that placement will be safe and secure for those children. That's the important aspect.
"It's only in circumstances where there isn't suitable care, or safe care particularly, able to be found within the extended family that children will be placed outside, and that's not only for Maori children, that's for all children."
The strategy was articulating existing policy and was not a major change, Mrs Turia said.
National welfare spokesman Bob Simcock told NZPA that CYF had been subjected to "bullying" by Mrs Turia in the past over placing Maori children with family members.
Yet privately CYF workers said there were some children they "simply cannot place within the whanau because it's far too high risk for them," Mr Simcock.
CYF was showing courage in taking this position.
- NZPA