Glavish said Harawira is playing politics to try to divert attention from discussions with Kim Dotcom, while Jackson was worried about loss of his "control" of funding decisions, the Ngati Whatua leader said.
The latest reports show that use of conversational Maori is reducing and Te Matawai would stop the slide. Iwi like Ngai Tahu, Ngati Porou, Te Arawa, Tainui and Ngati Whatua and others are demonstrating daily that they have the financial and management nous to achieve goals for their people.
Treasury has given the Government warnings about the implications of Te Matawai, which would mean the end of Crown enterprises and membership being controlled by iwi.
Some in Maoridom see Te Matawai as a battle between "Establishment" Maori - iwi represented by the Maori Party - and urban Maori authorities and young activists.
Public servants are wary of Te Matawai
"Treasury and other government agencies who oppose Te Matawai are simply being racist in their patronising arrogance," Glavish said.
National is considering whether to give as green light to Te Matawai in return for Maori Party support in post election coalition discussions.
"I have every confidence that the John Key government will see sense in what Minister Sharples is proposing," said Glavish.
However Left Maori politicians such as the Hone Harawira and the Greens Metiria Turei have criticised new plans saying it will hand control to iwi that don't understand issues.
Jackson - who heads the organisations of urban Maori authorities and the Radio Waatea Maori Network has described Te Matawai as the worst idea Sharples has had while in Parliament.