The former chair of the Waitangi Fisheries Commission, Shane Jones, says the presence of foreign charter vessels in the fishing industry is crucial for Māori.
The Government announced on Thursday it is to scrutinise the work of foreign fishing trawlers chartered by New Zealand companies to catch fish in local waters.
The inquiry is being launched following a 12,000-signature petition to Parliament by the Service and Food Workers union questioning why overseas crews are used instead of local workers.
Mr Jones says if foreign crews have been mistreated, the operators of those vessels should be punished and iwi should be more choosy about who is buying their quota.
But he says the iwi fishing enterprises that own quota but don't own vessels need the option of foreign-chartered fishing boats so they can catch low value species and still make a profit.
Mr Jones says there are sectors in the industry who would like see the value of the quota dropped and he says banning foreign vessels would slash the value of the Māori Fisheries settlement by a third, and take $500 million out of the economy.
His views are echoed by the chief executive of Te Ohu Kaimoana - The Maori Fisheries Trust.
Peter Douglas says the public needs to have confidence that foreign charter boats comply with New Zealand labour and immigration laws.
However, he says wide-spread competition for annual catch entitlements is essential for the viability of the industry and for iwi to get the best returns on their fisheries investments.
