"The issue needs to be taken in its proper context. There are 27 people hostage, held under gunpoint for over five weeks now.
"But the reality of the situation is ... that thousands of people are losing their jobs, they are without food.
"The whole country has been held to ransom. We are taking the most pragmatic steps at a time like this."
Tarakinikini said the hostages' safety had not been jeopardised by the military's move.
The collapse of the accord is a blow for Speight's group.
The deal gave Speight the ability to nominate people for a civilian government, as well as representation on a committee to draw up a new constitution.
Speight's team had the ability to lobby a new president for inclusion in a new cabinet, to be approved by the president with the Great Council of Chiefs.
Speight and his key supporters would also have been granted immunity from prosecution for the coup.
- NZPA
George Speight talks to IRN's Barry Soper
(10 min).