The Waitangi Tribunal has issued a direction for the Government to halt its asset sales programme at least until the tribunal delivers its full findings on a water rights claim in September.
The tribunal issued its direction today, saying that selling shares in state assets before it delivered its full findings could "cause a significant disadvantage to [Maori] claimants'' if their claims were subsequently found to be well-founded.
It said that as a result, the status quo should be maintained and the Crown should not proceed with asset sales until the tribunal had completed its report into the issue, expected in September.
The direction follows an urgent Waitangi Tribunal hearing last month into a claim brought by the Maori Council and some hapu seeking a halt to the asset sales.
In its memorandum, the Waitangi Tribunal rejected the Crown's argument that the sales would not affect its ability to recognise Maori rights and interests at a later stage.
"Where the Crown alters the nature of the shareholding of a Crown owned body utilising freshwater resources, it is in our view arguable that this may alter its ability, either in a legal or practical sense, to recognise any proven Treaty rights in such resources or to remedy their breach.''
The report said that although the Crown had argued it could re-purchase shares if needed, that would only happen if there was a willing seller and could be prohibitively expensive or require compulsory acquisition.
It acknowledged that a delay in the initial public offering for the shares could have significant implications for the Crown.
However, it said the exact timing of the first sale of share in Mighty River Power was as yet unknown, and delaying until September would be either only a minimal delay or no delay at all.
The memorandum emphasised that the direction did not amount to a finding on the facts of the case, but acknowledged there was a serious issue for the tribunal to consider and that the status quo should be maintained while that was done.
Its fuller findings in September will address what rights and interests in water and geothermal resources were protected by the Treaty of Waitangi, and whether the sale of minority stakes in SOEs affected the Crown's ability to recognise those rights and remedy them.
