New Zealand asset sales

Given the extreme arrogance of this government and its determination to ride roughshod over the interests of the country this outcome was inevitable

Court action over Maori water rights 'extremely likely'

RadioNew Zealand,

16 October, 2012

Court action by the Maori Council challenging the partial sale of Mighty River Power is now almost certain.

On Monday the Government confirmed it will proceed with the partial sale of the state-owned company between March and June 2013, but will not include a special shareholding for Maori in recognition of rights over fresh water.

Finance Minister Bill English says the Government maintains its belief no-one owns the water and Maori rights and interests can be recognised in other ways.

Members of the Maori Council will meet on Tuesday to decide whether to challenge the Mighty River sale.

Lawyer for the council, Felix Geiringer, says the matter is extremely likely to head to the courts, and any such action would challenge the partial sale's legality under the Treaty of Waitangi.

Mr Geiringer says costs of legal are an issue for the council, which he says is not so abundantly funded that it can make such a decision lightly.

"The problem is that the Government has quite deliberately been boxing them into a corner. It's really forcing them to court."

Mr English says it is preferable any court proceedings begin now, so they can be dealt with before the planned float next year.

The Maori Party will vote against the partial sale of Mighty River Power but co-leader Pita Sharples is making clear the party will not walk away from its support agreement with National.

Dr Sharples told Radio New Zealand's Morning Report programme he has had many discussions with Maori on staying with National. He says the message from many people is for the party to stick with its support agreement so it remains at the centre of Government and continues to make a difference.

The New Zealand First leader Winston Peters says the Government's decision to proceed with the partial sale is stupid and bloody-minded as economists and the Treasury agree the sale isn't justified.