The Tuwharetoa Hapu Forum said the proposal to raise and harvest trout at the trout centre was seen as a way of getting trout to the marae table when there were tangi or other significant tribal events and take pressure off the wider Lake Taupo fishery.
Marae already have the right to fish for trout for such events.
In the past the rivers and lakes of the Ngati Tuwharetoa rohe provided native fish species including koaro, inanga, kokopu and koura, all delicacies the iwi was famous for.
The cultural redress proposed in the agreement in principle is for the iwi to have the use of a raceway at the Tongariro National Trout Centre and any other facilities not needed by the Department of Conservation (DoC) to raise trout for "significant Ngati Tuwharetoa hui, tangi and other occasions". Angling groups criticised the idea when they became aware of it.
Although the agreement in principle has been publicly available since March, Fish & Game said it had not been consulted and this was the first it had heard of the idea.
Its chief executive, Bryce Johnson, said trout were not included under the Treaty of Waitangi, so there was no legal basis for the proposal. He questioned the Office of Treaty Settlements' authority to even make such an offer.
"The Crown has little to do with trout and it is politically inflammatory to use them to settle its treaty obligations. Anglers brought trout to this country, not the Government, and generations of anglers have protected, managed and nurtured sports fish, paying for them from their own pockets," Mr Johnson said.
"Fish & Game and recreational anglers are justifiably worried this is the thin end of the wedge to try and open the door to trout farming. The present law is that trout are not a commercial species and trout farming is specifically prohibited. That is the way it should stay."
New Zealand Federation of Freshwater Anglers said the proposal "set a dangerous move" and would endanger New Zealand's world-famous wild trout fisheries.