Mr Flavell said the bill was the final step in extinguishing the New Zealand Mission Trust Board and discharging its trustees.
"Through the legislation we pass today, we will mandate the change in the trust and the beneficiaries, and, in doing so, unshackle the hapu of Ngati Tapu and Ngai Tamarawaho," Mr Flavell said.
"A key issue at the heart of this bill is that awarding the Crown Grant in 1852 was actually contrary to the principles of the Treaty of Waitangi. But we must not abandon the broader context of this bill, which was that the actions that resulted in the land transaction at Otamataha were in themselves a punishment meted out to those so-called natives, those heathens, for the battles at Te Ranga and Pukehinahina ."