Prime Minister Tony Abbott has been severely criticised for his refusal to back Indigenous-led consultations on Aboriginal recognition in the constitution.

Prominent Indigenous leader Noel Pearson said it was a setback and likened it to the near-catastrophic Apollo 13 moon mission in the 1970s.

Mr Pearson was addressing other Indigenous leaders and policy makers at the Garma Festival in north-east Arnhem Land - seen by some as one of the nation's premier forums on Indigenous affairs.

Indigenous leader Patrick Dodson and Mr Pearson had submitted a proposal involving a series of conventions to allow Indigenous people to come to a consensus position on constitutional change.

In the letter to Mr Pearson and Mr Dodson, Mr Abbott said there was a "risk" involved in an "Indigenous only - or even an Indigenous first - process".

My anxiety about a separate Indigenous process is that it jars with a notion of finally substituting "we" for "them and us". I am in favour of building consensus, but strongly believe this should be a national consensus in favour of a particular form of recognition rather than simply an Indigenous one. The risk with an Indigenous only - or even an Indigenous first - process is that it might produce something akin to a log of claims that is unlikely to receive general support. I accept these community conferences need to take place in a way that give Indigenous people ample opportunity to have their say.

Mr Pearson urged his people "not to drop the bundle over the news", but also compared the process to the 1970 moon mission that almost ended in disaster after an oxygen tank exploded and other critical system failures.

Mr Pearson said Mr Abbott suggested an alternative, but said it was "not in the manner that we proposed" of town hall style meetings to discuss recognition.

"God knows what they will be discussing," he said.

"This is like the Apollo mission.

"It's not 11, it's 13. We've heard an explosion. We have some major work in front of us to land this thing."

He said Aboriginal Australians risked being sidelined from the recognition process and he believed the PM harboured a reservation about the idea Aboriginal Australians could reach a consensus position.

"The question that is unanswered in his letter, how do we go to town hall style meetings without some clarity about where Indigenous Australia stands in relations to the propositions that have been aired over the last three years," Mr Pearson said.

"Burdened with a history of assumption that our mob can never unite and will never unite... as a result, I think the PM harbours a reservation about the idea we could go through a set of conferences and come up with something that is hard-headed, politically realistic, but also faithful to the history of Indigenous advocacy of recognition that is at least a century old."

Upon standing to speak at the Garma forum, Mr Dodson told those assembled, "we've had some news".

"The current application by the Indigenous leadership to the Prime Minister... has been turned down, so that really makes it challenging," he said.

Opposition leader Bill Shorten said the Government needed to take the proposals seriously despite being "paralysed by other issues over the past few weeks".

"We need to remain flexible on how we achieve constitutional recognition," he said.

"Part of that is ensuring Indigenous Australian have their views genuinely heard.

"I encourage Mr Abbott to keep an open mind about this proposal."

Australia needs to decide if it wants Aboriginal culture to survive: Langton

Professor Marcia Langton said Australians "have a choice when this referendum is held, and it is this - do you want Aboriginal cultures to survive, or do you not want Aboriginal cultures to survive?".

She slammed the decision to reject the convention plan and took aim at Mr Abbott for his "lack of leadership" in the wake of recent events.

"The Prime Minister is trying to wrangle his own problems ... the members of his own party don't like the way his office is run," she said.

"He is not going to provide leadership when the AFL thugs - especially those from West Coast Eagles and the commentators who attacked Adam Goodes - can stir up so much hatred so quickly."

Professor Langton said there was a voter base who would never understand the plight of Aboriginal people.

Noel Pearson says many of us do not know our fellow Australians as well as we think we do. ( ABC News: James Purtill )

"Those people vote for the Liberals and the National Party, they're the tradies who turn up with their eskies and who like nothing better than to show each other how racist and sexist they are," she said.

"We can't expect leadership from that camp in those circumstances, so therefore it is up to all those good Australians who understand the enormity of this issue to stand with us and be the leaders."

Mr Pearson said achieving constitutional recognition was "not just about recognising the blackfellas".

"Recognition is a mirror. Recognition is about recognising the whitefellas. Recognition is about recognising the whitefellas as much about recognising blackfellas," he said.

"You will recognise yourselves when you recognise the original people of this country.

"The recognition process is not just a matter of formally recognising us in constitution - it is about putting the mirror in front of your face and finally recognising yourselves as Australian."



I feel like curling up in the foetal position: Gooda

Aboriginal and Torres Strait Islander Social Justice Commissioner Mick Gooda admitted to "feelings of despair".

"It is hard not feel despair right now when two of our greatest leaders put up a proposal and it is just shot down.

Mr Gooda joked he had questioned his own sanity upon hearing news of the knockback.

"I sometimes think to meet the definition of insanity: keep on saying the same thing, expecting different outcomes," he said.

"The same thing, [they] keep saying is 'you've got to engage with Aboriginal and Torres Strait Island people respectfully'.

"That is what was proposed here ... but we get this response.

"For me it is one of those moments where I feel like curling up in the foetal position under the doona."

Senator Nova Peris said if the proposed conventions were not held, "then we are wasting our time".

"If we set the history right in this founding document, you don't lose 200 years. You gain 40,000 years of history."