The federal government's proposed plan to improve the native land claims system and settle hundreds of long-standing disputes should help ensure an aboriginal national day of action later this month is peaceful, Federal Indian Affairs Minister Jim Prentice says.

Prentice hailed the Conservative government's plan Wednesday as a "major breakthrough" that would reduce anger among First Nations communities and expedite the resolution of more than 800 outstanding land claims across Canada, which take an average of 13 years to process.

But he also warned that any confrontation or blockade on June 29 would be "counter-productive" and "erode the good will that exists toward aboriginal programs and services."

"We want to see peaceful demonstrations that day and we don't want to see any of the illegal actions that would disrupt the lives of innocent people," Prentice told CBC News Wednesday.

First Nations leaders say the day of action is designed to draw attention to outstanding land claims, and to the racism and poverty faced by their communities.

But Chief Terry Nelson of the Roseau River First Nation in Manitoba has threatened to block railway lines running through his community on the day of action.

Prentice said the response he has heard so far from First Nations leaders across the country has been supportive, but added he can understand why the announcement would arouse suspicion.

"Frankly, it's because there's been a backlog of claims over the last 20 years," Prentice said. "First Nations have been very positive about what they've heard, but they want the system to work."

He cited the 150-year dispute at the centre of a continuing First Nations occupations in the southern Ontario community of Caledonia as an example of some of the long-standing claims that have fuelled aboriginal frustration. 

Fontaine hails 'historic' proposal; others express doubts

The proposed bill allocates $250 million a year for 10 years to land claim settlements and calls for the creation of a new independent tribunal that will make final decisions about disputes.

The bill, announced Tuesday by Prime Minister Stephen Harper, will be tabled in the fall after a summer of discussions with native leaders from across Canada.

It calls for the transformation of the existing Indian Specific Claims Commission into a mediation body. The independent commission currently investigates disputes and makes recommendations, but has no power to make rulings.

At Harper's side Tuesday, Assembly of First Nations National Chief Phil Fontaine praised the government's "historic" proposal, saying it gives hope for First Nations people who have fought for decades for fair and just resolution on land claims.

But some regional First Nations representatives said Wednesday the bill is just a drop in the bucket.

Barry Bonspille, adviser to the Grand Chief of the Mohawk Council in Kanesatake, Que., said he can't believe Fontaine agreed to support the land claims proposal.

"To have the national chief support it gives credence to the Conservatives' point of view that they can handle things better than the Liberals," Bonspille told CBC News. 

"Maybe they can, but certainly not with $250 million towards land claims [a year.]"