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The government appears to be easing back on its opposition to having separate Maori seats on Auckland's new super council.
The prime minister has been in discussions with Maori groups about the recommendation to ignore the Royal Commission's findings that three seats be set aside for Maori.
The move has angered many Maori, including Maori Party co-leader Pita Sharples, who has criticised the decision.
But Key is indicating the government's position is not set in stone.
He is expecting the issue to sort itself out during the select committee process.
Meanhwhile, an international expert on city leadership says having one mayor for all of Auckland will do wonders for the city's pull on the international stage.
Professor Robert Hambleton, who was involved in setting up the London Greater Authority, is speaking at an AUT conference on local governance on Tuesday.
He says the Government has made a good decision to have one council and mayor for Auckland, while also leaving a lot of scope for discussion over the powers of the local boards.