 In 1980 he resigned from Parliament and formed the Mana Motuhake Party to contest the resulting .He was defeated by Bruce Gregory, coming second with 991 fewer votes than Gregory.Following his exit from Parliament Matiu Rata was the leader of the Muriwhenua in presenting their Treaty of Waitangi claims to the Waitangi Tribunal, resulting in a settlement of Māori fishing claims for the tribes of the Far North.