Labour is focussing on the issues affecting working New Zealanders, including jobs, healthcare, and education, as well as the Treaty Principles Bill, leader Chris Hipkins says.
Tax is a key issue too, with members voting for more work to be done to investigate both a capital gains tax and a wealth tax.
The party's annual conference is taking place in Christchurch this weekend, one year after Labour's election defeat.
Willie Jackson made a fiery speech on Saturday, saying the coalition government was taking the country down a path of "division and hate" in relation to the Treaty Principles Bill.
Hipkins said he believed the party should be dealing with the issues that were "on the table today".
"We didn't put this issue on the table, the current government did."
New Zealanders expected the party to take a "strong stance" on a "very divisive debate", he said.
But that did not mean it would not focus its energy on the issues affecting working New Zealanders.
"Those two things are completely compatible."
Jackson said his speech showed Labour had not been "captured" by anybody.
"I think we need to make our members feel comfortable about our position with regards to Māori."
Finance spokesperson Barbara Edmonds also took aim at the coalition, saying she would not be making the choices Finance Minister Nicola Willis was making.
"Slashing public sector jobs, axing ferry contracts and grinding the construction industry to a halt.
"Choosing tax breaks for tobacco companies over hiring enough nurses and quality spending on health.
"Choosing tax breaks for landlords over helping first home buyers."
Edmonds added that Willis was forging on with unaffordable tax cuts "just to keep her job".
"That is selfish economic vandalism."
Edmonds also spoke about being raised by a solo father, and the difficulties she herself faced raising eight children.
"When I take the Treasury benches I promise you I will never forget where I come from and how I got here. Because I am the fruit of the labour of cleaners, of kitchen hands, of cooks and of aged-care workers."
Tax
Tax was the key issue highlighted by the majority of Labour members as they entered the party's annual conference, with many saying it was necessary to help pay for public services.
The Taxpayers Union held a small demonstration outside the conference, with signs pointing inside, saying 'Higher taxes this way'.
Hipkins said any discussions on tax were an opportunity for the membership to signal a preference to the party.
Following a vote on Saturday, both a wealth tax and a capital gains tax were now on the table for the policy team to progress.
RNZ understands amendments had been lodged to only look at a capital gains tax, to look at both but prioritise a wealth tax, or to commit to both - but none passed.
No announcements would be made this weekend, with Hipkins saying he wanted to get the details right.
"Any tax policy changes that you make have to be compatible with your broader approach to growing the economy, creating good, well-paying jobs and funding the public services that New Zealanders want."
Hipkins rejected the notion his party was too internally focussed, despite warning members on Friday that winning internal debates was not what mattered most.
Instead, he said it was a challenge to ensure the party did not become that way.
"We've always got to keep our eye on the external audience as well.
"The Labour Party is a public institution. It's not just a private gathering. It's a public institution. And actually, we've got to make sure that the people who we need to vote for us have confidence."
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