He said the accusation of "an aspiration deficit" was doubly insulting coming soon before the signing of a Treaty settlement between the Government and Ngati Kuri, due to take place at Cape Reinga tomorrow.
"If there's any doubt about Maori aspirations then look at Ngati Kura, a very small tribe with very limited assets, but who have worked extremely hard to get to this settlement point," Mr Jones said.
"They are going to have an inordinately hard task in difficult circumstances for a small iwi, to turn that settlement into a solid future. They have got the means now but where is the other support? They need encouragement, they don't need to be told they have got an aspiration deficit."
Mr English has not responded to Mr Jones' concerns but he told the select committee Northland's next big opportunity was the Treaty settlement process, with the potential to inject $200 million into the region.
"The Government is ready but Northland isn't," he said.
The Government hoped iwi would use settlement money to embrace the oil and gas industry to help stimulate jobs, Mr English said.
Mr Jones said the Government was happy to underwrite dairy giant Fonterra and aluminium smelter owner Rio Tinto but ignored the needs of Northland.
Far North-based Green MP David Clendon said Mr English "got it half right" in saying government intervention had "disempowered rather than helped" Northland. "But if anything has killed aspiration, it would be the very policies that National has overseen," Mr Clendon said.