The working group finished its third and final round of hui in Northland over the weekend, which culminated in Ngāti Manu becoming the first of 110 hapū to formally reject the proposals.
Hapū representative Phoebe Aroha Davis said members had spoken out at previous hui, denouncing it as political expediency, and breaking promises of an "honourable process".
Following the hui at Karetu Marae with Little, the hapū decided to reject the proposal, and seek direct negotiations of its claims with the Crown.
The iwi settlement proposal stipulated while it was the right of hapū to withdraw from the process, hapū would be unable to rejoin. The Crown's negotiating resources were also already committed to the end of 2020, making a separate hapū settlement very difficult.
Davis said hapū/Crown negotiations had been done before.
"We are not going to be scared or bullied into the rhetoric of 'it could take years' - it already has," she said.
Tūhoronuku deputy chair Raniera (Sonny) Tau said he was wary of how final the hapū's decision would be.
"They will be looking at their options, like the other hapū. The mandate is evolving through this round of hui and submissions, so now is the opportunity to have input, not to throw the toys out of the cot.
"To break away now would show they never intended to be a part of it."
Tau, who is also chair of Te Rūnanga-Ā-Iwi O Ngāpuhi, said the mandate had already evolved over the past two rounds of hui to meet hapu concerns.
"There is no legitimate reason why they would want to leave other than saying they wanted to speak by themselves. But if they look at the proposal, that is exactly what it says."
"We have done all we can to open doors to every hapū," Tau said.
He remained positive the proposal would be supported by iwi members.
"I am very positive we will reach the threshold we set ourselves of 75 per cent member support, and 65 per cent hapū support."
Submissions on the proposal for a pathway to a Treaty settlement had been extended to October 23, with the third round of hui starting October 12.
Provided the proposal was supported, there could be an iwi-wide vote in December on a proposed pathway to settlement.
Background
• Ngāpuhi is the largest iwi in the country with more than 125,000 people who affiliate with the iwi, and a potential further 25,000 living in Australia. After many rounds of negotiations, the Northland iwi still has not completed a Treaty of Waitangi settlement, which could be worth hundreds of millions of dollars.
• In 2014 the Government recognised Tūhoronuku as the mandated authority to negotiate Treaty of Waitangi claims on behalf of Ngāpuhi.
• Te Kotahitanga and several hapu opposed the recognition of this mandate and went to the Waitangi Tribunal requesting an urgent inquiry.
• In 2015 the Waitangi Tribunal released a report which found while Tūhoronuku's mandate was sound, its structures undermined hapu rangatiratanga.
• An engagement group comprising members of Tūhoronuku, Te Kotahitanga, and the Crown was established to address the issues in the tribunal's report.
• Maranga Mai, a report which recommended a way forward, was produced. Tūhoronuku did not accept that report in its entirety.
• In 2017 Labour came into Government and Andrew Little became Minister of Treaty Negotiations. He held hui in Waitangi in November and around Northland in December.
• In March 2018, Little met Te Kotahitanga co-leaders Rudy Taylor and Pita Tipene, and Tūhoronuku chairman Hōne Sadler and deputy chairman Raniera Tau, forming the group Te Rōpū Tūhono.
• Two rounds of consultation hui took place with Te Rōpū Tūhono and Ngāpuhi members throughout New Zealand and Australia over August and September.
• The third round of consultation began on October 12, with feedback/submissions on proposals be assessed up to October 23.
• On October 14, hapū Ngāti Manu, one of 110 Ngāpuhi hapū, announced it would reject the proposal and negotiate a settlement separately with the Crown.
• A final proposal will be considered on October 25 by Te Rōpū Tūhono, before further consultation and a potential vote in December, which will need 75 per cent member support and 65 per cent support of hapū to progress towards Treaty settlement negotiations.
