Mana Motuhake was formed in 1980 by Matiu Rata, a former Labour Party member of parliament who had served as Minister of Māori Affairs in the third Labour government (1972–1975). Rata had grown increasingly dissatisfied with Labour Party policy. Eventually deciding that Māori needed an independent voice, he announced his intention to resign from Labour on 6 November 1979. He announced that he would promote a movement based on ""mana Māori motuhake"". At Easter 1980, he launched the Mana Motuhake party, and resigned his seat in Parliament to contest a by-election under its banner. In the resulting Northern Maori by-election of 1980, Rata was defeated by the Labour Party's new candidate, Bruce Gregory.