She also objects to a provision in the Children Young Persons and Their Families (Oranga Tamariki) Legislation Bill which removes an existing requirement to place a priority on placing Maori children within their own whanau, hapu or iwi.
She says it could set up a new "stolen generation" and Dame Tariana Turia has talked about marching on Parliament in protest to it.
The bill was also the subject of discussion between ministers and the Iwi Chairs Forum at Waitangi earlier this month.
Questioned by the Greens in Parliament today, English said he would be concerned if anyone "as focused as Dame Tariana on the welfare of our children" felt that strongly.
He encouraged participation in the select committee process and to come up with proposals for changes.
"I think we do need to keep in mind, for those groups outside Parliament, that we do not want to let a philosophical discussion between adults get in the way of a better path for our children.
"Sometimes these things are easier to solve in practice than in theory."
Fox told reporters afterwards that it was important to get the bill right.
"We've already been assimilated and colonised once."
Asked if she would walk from Government over the issue, told reporters afterwards: "I'd walk over children before the Kermadecs any day of the week."
But she said she could not speak for the party on walking away.
The first option was to stay and fight.