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Prime Minister John Key and Maori Party co-leaders Tariana Turia and Pita Sharples. - Source: Getty -
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Prime Minister John Key says he has delivered on his promise of an elegant solution to protect Maori rights while partially privatising some state assets.
After meetings with Maori across the country, the Government plans to retain parts of a clause in the asset sales law that sets out the Government shareholder's Treaty of Waitangi obligations.
Finance Minister Bill English said the negotiations with Maori have been intense and the Government received 200 submissions.
"If there's nothing in the legislation then investors won't know how the various Maori interests will be dealt with," he said.
The Maori Party threatened to break its coalition deal with National after it was revealed they were thinking about taking out protections included in the State Owned Enterprises Act known as Section 9.
Protests at Waitangi and hui followed, but now the party says it is cautiously optimistic.
Maori Party MP for Waiariki, Te Ururoa Flavell says it has been accepted that the principles of the Treaty must be maintained.
"The question is how that's rolled out and we still maintain an element of caution there," he said.
English says a Treasury document was incorrect when it suggested the Government's preferred option was to remove the Treaty clause.
He says the new legislation will reflect some "concepts" of the existing Section 9.
"I think what it would mean is simply that the Crown makes sure that it continues its discussion with Maori over their rights and interests in water. The water is not for sale. It's not owned by the companies or iwi. It's not owned anybody," he said.
Flavell says Maori interests will be retained as the partial asset sales proceed.
But opposition parties say the clause could put potential shareholders off buying up to 49% of four state owned energy companies and they say the move is a backdown.
Labour's SOE spokesman Clayton Cosgrove says it will end up costing taxpayers.
"Even though the Crown may own 51%, they'll end up paying 100% of any Treaty obligations. It doesn't add up, it's a shambles."
The Prime Minister says the new clause will not affect private shareholders.
"Our view is there should be a position that spells out what obligations lie with the Crown as a shareholder and what obligations lie on individual private shareholders," Key said.
Cabinet is set to decide what "concepts" of Section 9 will be retained in the coming weeks.
