Indian Affairs Minister Jim Prentice says he hopes to have an independent native land claims tribunal, proposed yesterday by the Tories, up and running by early 2008.

Prime Minister Stephen Harper announced plans Tuesday to "revolutionize" the native land claims resolution process with the creation of the independent claims tribunal.

There is currently a backlog of more than 800 unresolved land claims across the country. Only 120 have progressed to active negotiations with the government.

"We'll be consulting with the Assembly of First Nations over the summer, working together with the chiefs from across Canada, in particular British Columbia where the largest portion of the backlog exists," Prentice told CTV's Canada AM on Wednesday.

"My hope is to introduce the legislation into the House in September... and have this new tribunal up and running in the first quarter of 2008."

Currently, it takes an average of 13 years to settle a land dispute, adding to the frustration of Native groups who have promised protests and rail blockades on June 29.

Under the new proposal, land claims that remain in dispute for more than three years would head to the independent tribunal.

"What this will do is to put into the process an impartial judge who will be able to supervise the negotiations and be able to make binding decisions if the parties can't agree," said Prentice.

Prentice said Tuesday that Ottawa would also commit millions of dollars towards settling claims.

"This plan sets aside $250 million per year for 10 years, which is a sinking fund that can be applied towards the resolution of claims," he told CTV's Mike Duffy Live.

A third element of Harper's planned overhaul aims to speed up the process of small claims.

"Roughly half of all claims are for less than $3 million," Harper said Tuesday.

First Nations Chief Phil Fontaine spoke shortly after Harper at the same press conference Tuesday and welcomed the government's announcement for change.

"Today is an historic day for First Nations people; today is a day of hope," he said. "The independent land claims body in this announcement today represents hope for First Nations people, who have fought for decades for the fair and just resolution of land claims."

The proposed reforms come after an extensive Senate committee report released this year, which suggested Ottawa spent at least $250 million annually to settle claims. Otherwise, the committee warned of escalating standoffs over disputed land.

Tensions have remained high in Caledonia, Ont., where a year-long occupation of a non-native land development has caused friction between First Nations protesters and local residents.

First Nations spokesperson Janie Jamieson, told The Canadian Press the occupation will continue, despite Harper's announcement.

But the prime minister was confident that his government's proposed reforms would help resolve such disputes, by streamlining a process that has never been fully finalized.

"Virtually from the day our country was born, aboriginal people have had grievances about the government's attempts to live up to its obligations under their historic treaties," said Harper.

He then added: "In fact, Sir John A. Macdonald himself grappled with a Mohawk land claim in Caledonia back in 1887. Over the next century, Ottawa failed to come up with a process for resolving such claims."

With files from The Canadian Press