Talks have broken down between the Government and iwi, with the Kermadec Ocean Sanctuary now to be debated in court.

The Maori Fisheries Trust has filed High Court proceedings against the sanctuary, saying they were guaranteed rights in a previous Treaty settlement.

LISTEN ABOVE: Maori Fisheries Trust Chairman Jamie Tuuta speaks to Mike Hosking

Maori Party co-leader Marama Fox said iwi wanted consultation before the sanctuary was announced, which started negotiations off on a bad foot.

"There have been conversations. We obviously have a difference of opinion, and that would be around compensation."

Fox said the sanctuary zone hasn't historically been a big area for fishing, so shouldn't cause commercial problems for anyone.

But she said if there are fishing rights involved, “those people should have been consulted prior to a whole vast area of ocean being ruled out.”

Labour leader Andrew Little said this was predictable, but the Government tried to ram it through.

He said the whole reason we have the Waitangi Tribunal "that investigates claims, makes settlements that then become binding" is because there are rights that need to be respected.

But Environment Minister Nick Smith said he would not be deterred by the legal challenge.

"The Government's ambition still remains to have the Kermadec Ocean Sanctuary in place on November 1st," he said.

The minister said the trust's case was "weak" because Maori had not fished at the islands for a decade.