Te Tai Tonga MP Rahui Katene said she received "pretty extreme reactions" when she drove vehicles with the Maori Party and tino rangatiratanga flags.
"In fact, I have recently lost my tino rangatiratanga flag: broken off by a passerby one night in Nelson - in my own home town, outside my brother's house.
"In Te Waipounamu, negative attitudes towards Maori and Maori issues are much stronger than in the north," Mrs Katene said.
Yesterday, the Otago Daily Times reported Dunedin businessman Geoff Portman forwarded the email "I wish I was a Maori" to the school, after becoming incensed over its decision to fly "so-call Maori flags".
Mrs Katene said his decision was unfortunate, and she congratulated the school for "showing leadership and courage in flying flags that represent the diversity within the school".
"To grow as a nation, New Zealand and New Zealanders need to get beyond the ignorance and slogans `one nation, one New Zealand, one flag, one people' and realise that we are a nation of two peoples, with many other ethnicities living here. We will only mature as a nation when we learn to celebrate our differences rather than denigrate them."
It was regrettable such negative issues shown in the media during the Rugby World Cup, as "the whole world is watching us".
The email in question was forwarded to Mr Portman by an acquaintance at Orion Crop Protection, which distanced itself from the controversial contents. These included, "You rob us, convert our cars, rape our women and bash our elderly".
General manager Murray Hern said his company in no way endorsed the email.
"The individual advised me that he received the email and thought the content was ridiculous. He forwarded it to an individual outside our organisation - which in hindsight was a mistake."
Mr Hern said the email had circulated widely and his employee found himself "linked with a message that expresses views that he did not write and he does not support".
He confirmed the man had been reprimanded.
Also becoming involved with the issue was Race Relations Conciliator Joris de Bres, who said the email was first referred to him in August and "it is a pretty distasteful and misleading kind of document".
The email had crossed his desk a number of times, forwarded from people working at "reputable businesses and organisations".
While the email was "provocative and offensive, and misleading", it was not unlawful.
"These things have a circulation and have a readership ... I am disturbed it gets sent to a school and sent by people in reputable and professional businesses."
