A Supreme Court appeal challenging the Te Arawa Waitangi Treaty settlement has been withdrawn after the Government conceded it was in the wrong.
The Supreme Court was to hear the appeal of the Maori Council, the Federation of Maori Authorities and Tuwharetoa paramount chief Tumu te Heuheu against the Attorney-General, the Crown Forestry Rental Trust and the Te Arawa Trust next week.
They had wanted the Supreme Court to determine if the Crown was in breach of its legal obligations when it entered into the $36 million Te Pumautanga o Te Arawa settlement.
Among the issues were the extent to which central North Island forests could be directed to one iwi, and the extent to which Te Pumautanga o Te Arawa represented the entire Arawa tribe.
But the appeals have now been withdrawn.
Supreme Court minutes state that the Crown acknowledged that the 2006 Te Arawa settlement meant it would have received certain rental proceeds under the Crown Rental Forestry Rental Trust Deed.
While the Crown had always intended the fund would be committed to Maori development, it said it appreciated the appellants did not consider it to be a good faith step in line with the Crown Forest Assets Act and its underlying deed.
The Crown regretted it and apologised to the appellants, the court said.
The parties told the court that costs did not need to be addressed.