The replacement bronze statue was installed outside the Whanganui District Council Buildings in 2009 when the contentious Michael Laws was mayor.
Laws refuted iwi claims about Ballance.
"They are ignorant Māori, who don't know their history or the history of our centre," he claimed.
Irish-born Ballance came to Whanganui in 1866 and after running a jewellery shop in Victoria Ave for a short time, he founded The Wanganui Herald newspaper.
He was the owner of the paper for the remainder of his life and was editor until he entered politics.
Ballance became Premier of New Zealand in 1890 and is remembered for his support of Women's Suffrage and his sound handling of the economy.
He died of intestinal disease in 1893 and was buried in Whanganui at Heads Rd Cemetery.