-
Related
Act leader Rodney Hide is threatening to stand aside from his job as Local Government Minister if National introduces special Maori seats on Auckland's new super city council.
However, Hide denies he is holding the government to ransom over the controversial issue.
A spokesman for Prime Minister John Key says the new council arrangements are being worked through and the relationship with Act remains strong.
The Royal Commission which reported on Auckland's local government structure recommended reserved Maori seats but the government scrapped that when it set out its plans for the city.
The Maori Party has been lobbying to overturn the government's decision and both sides have been looking for a compromise.
But a National MP has sent an email to his caucus colleagues saying Hide, who is Minister of Local Government, has threatened to end Act's relationship with National if it agrees to having reserved Maori seats on the new council.
Act signed a support agreement with National after the election which ensures the government's majority in Parliament. The Maori Party has a similar agreement.
A special select committee which has been holding hearings in Auckland is due to report to the government in about two weeks.
It has dealt with the issue of Maori seats and is expected to make a recommendation one way or the other.
