At times, National List MP Michael Woodhouse, who chaired the meeting at the Edgar Centre, struggled to keep order as those attending sought to correct perceived misinformation.
Mrs Tolley said it was a priority to identify and help the 20% of students leaving schools with inadequate skills.
Macandrew Intermediate deputy principal Heidi Hayward asked how National Standards would help when some pupils came to school without food and highly stressed from family situations.
Mrs Tolley said "throwing money" at social problems had not fixed them.
On poverty and low achievement, she said, "Just because you're poor doesn't mean you can't learn."
Joneen Walker, senior lecturer at University of Otago College of Education, pointed out the long tail of underachievement which apparently plagued New Zealand should be put into context by noting not all countries included their underachievers when reporting results.
Northeast Valley Normal School principal John McKenzie sparked the flashpoint of the night, when, urging her to listen to education experts who had raised concerns, he told the minister: "Everything you have said this evening has made me even more cynical that we're pushing the proverbial uphill.
"We're not militant, we're middle class. We care for this nation, and for the children ..."
To jeers and laughter, Mrs Tolley said: "I've listened to [the concerns] but rejected it."
It was a minister's prerogative to make the final decision, she maintained, and then advised those unhappy with that situation to stand for Parliament themselves.
Kaikorai Primary School principal Nigel Wilson questioned the validity of the Education Review Office special report which found 30% of teachers were not teaching effectively.
Mrs Tolley stood by ERO.
Green Island School principal Steve Hayward challenged the minister on why a brochure handed out at the meeting included a statement from Prime Minister John Key asking parents if they would like to be able tosee how their child's school compared with others.
The minister had said at last night's meeting education officials were devising ways to present data to prevent the media using it for "mischievous league tables".
In response, Mrs Tolley said league tables could not be banned as the information was available under the Official Information Act and Mr Key was entitled to ask parents what they wanted.
