The Tribunal released its second report on the Te Arawa Settlement Process on 1 August 2007.

The Tribunal found that aspects of the Crowns processes of dealing with overlapping groups were inconsistent with the principles of the Treaty of Waitangi.  The Tribunal commented that the Crown cannot continue to “pick favourites” and make decisions on tribal interests in isolation, based on inadequate information.

The Tribunal said it could not endorse the Te Arawa settlement in its current form.

It did, however, acknowledge that the section of Te Arawa who have negotiated the settlement have done so in good faith and that the settlement must proceed albeit in a modified way.

The Tribunal has recommended that the proposed settlement be delayed, pending the outcome of a forum to decide on high level guidelines for the allocation of Crown Forest lands.  The aim of the forum would be to reach agreement upon:

1. Principles to guide decision-making of the allocation of Central North Island Crown Forest lands and Treaty settlement;
2. The overall proportionality to apply the allocation of assets between different iwi; and
3. The priority given to particular iwi in respect of Crown Forest lands in each geographical area.

The Tribunal has commented that this approach would benefit the Crown because it would not be in the unenviable position of determining the allocation of settlement assets between these groups, based on its understanding of their customary interests and of the potential size and shape of future settlements.