Maori Party co-leader Pita Sharples says claims he is promoting a separate prison system for Maori offenders is stupid.
Dr Sharples, who is also Maori Affairs and Associate Corrections Minister, is promoting the concept of a Maori rehabilitation centre for prisoners nearing the end of their sentences.
Corrections Minister Judith Collins has said she could be interested if it can be shown to reduce high Maori crime rates.
Labour law and order spokesperson Clayton Cosgrove accused Dr Sharples of promoting a separate Maori prison system and said victims needed to know perpetrators would be punished according to their crimes, not their race.
"A separate prison system may create second class victims. Is it the case that if you are attacked by a Pakeha the offender goes to prison, but if you are attacked by a Maori, your offender could end up flatting with their mates? How is that fair for victims?"
Dr Sharples said that comment was "stupid" and the unit would be for inmates at the end of their sentence.
He said there would be no soft touch for Maori; "how can there be when you've served your time?"
There were already other units where inmates learned skills before being released, which including flatting-type accommodation.
"It's nothing new for Maori or for Pakeha."
The rehabilitation units would be similar to Maori focus units but have better access to social workers, educators, "healers" and others to improve rehabilitation.
"Where prisons fail, including the focus units, is they release prisoners out into the community and there's been no groundwork done (to help them succeed)."
He said inmates would be given a set pathway to follow and would have to meet tight criteria such as non-violence to be in the unit.
For a pilot he suggested a 60-bed institution in an urban centre run by a runanga, or committee, involving local iwi and inmates would be involved in the day-to-day operation of the unit.
Under the concept, inmates could go flatting and become involved in community projects, they would be able to learn Maori and the focus would be on healing.
"A lot of this stuff is not new, it's just pulling all the good stuff together so we can actually turn people around."
ACT law and order spokesman David Garrett said he saw the proposal as an extension of Maori Focus Units and did not have a problem with it but wanted to see a full proposal.