Labour has criticised Treaty Negotiations Minister Chris Finlayson for suggesting Maori with foreshore and seabed claims should negotiate directly with him instead of going to court.
The Government's preferred option to replace the Foreshore and Seabed Act would reassert the right of Maori to seek customary, but not freehold, title through the courts.
The previous government enacted the Foreshore and Seabed Act following a 2003 Court of Appeal ruling in the Ngati Apa case that raised the possibility, in some narrow instances, for Maori customary title to convert into freehold title. That case raised concerns about the loss of access to beaches for New Zealanders.
At the weekend Mr Finlayson told TV3's The Nation programme that under a government proposal Maori would be able to seek customary rights through the courts.
"Having said that, I'd be much happier to negotiate with people because I am a lawyer -- I know what litigation costs, I know the time that's involved and the effort that's involved -- and if things are able to be sorted out through negotiation I think that's great."
Mr Finlayson said it was only a suggestion but "it's a much better way to negotiate than to instruct lawyers".
During the programme Mr Finlayson said under the government proposal foreign commercial developments would be possible on Maori land.
Hapu or iwi which secured customary title would be free to enter into commercial development partnerships but would be subject to the Resource Management Act (RMA) and other relevant legislation.
"It's not proposed that this would be a sort of a self governing entity once it was established, so any kind of development would be subject to the usual RMA principles."
Customary title would not allow the sale of land, but could mean veto rights on development under the RMA.
Iwi could negotiate a price for the lifting of that veto, acquiring a commercial benefit for their consent, Mr Finlayson said.
Labour MP Shane Jones told The Dominion Post that it not Mr Finlayson's business to determine what was or was not customary right.
"It's preposterous that the minister of Treaty settlements can choose a few favoured Maori and then in association with them dream up ways that they can start to plan Club Med resorts dotted all around the coastline."
Prime Minister John Key previously said if there wasn't widespread support for alternative legislation, the existing Act would remain in place.