Water rights: No Mighty River Power sale delay – Sharples

UPDATE 5pm: Maori Party co-leader Pita Sharples says the government has given no indication it plans to delay the partial privatisation of Mighty River Power.

Dr Sharples made his comments to media after he and fellow Maori Party MP Te Ururoa Flavell met with Prime Minister John Key and senior cabinet ministers this morning.

The meeting followed the Waitangi Tribunal's recommendation, released on Friday, that the privatisation programme be halted.

Dr Sharples expected to meet with Mr Key again before the government made its final decision on the timing of the Mighty River IPO (expected this month).

At his post-cabinet press conference, the Prime Minister confirmed he was hanging tough on pre-Christmas asset sales.

Asked whether he was now less certain than ever that the government's asset sales programme would kick off in this calendar year, Mr Key said: "I wouldn't say that."

He added that the government is already working with Maori to recognise legitimate rights and interests in fresh water.

"The courts will be able to look at what's been historically agreed," he said, referring to processes such as the co-management agreement between the Crown and Tainui to clean up the Waikato River, and the Land and Water Forum process on freshwater allocation, which is due to report next month, and has had significant input from the Iwi Leaders Group on freshwater," Mr Key said.

He was taking advice from officials on the "SOE plus" concept pushed by Dr Sharples, which would involve Maori involvement in governance of partially privatised power companies.

The Prime Minister also confirmed that there are only two timeslots annually in which the partial privatisations can occur, in March/April, and around September/October, owing to the timing of the companies' profit announcements and the need to hold a large public share float outside of traditional holiday periods.

Mighty River will deliver its full-year earnings tomorrow.

-------------------------------------------------------

Water rights: Key flags strategy ahead of Maori Party meeting today

9am: Prime Minister John Key has clearly flagged his strategy ahead of a meeting today with the Maori Party on water rights - and defended the pair's coalition.

A claim over water rights and interests can go ahead in the courts, regardless of whether the government or shareholders control a power company, Mr Key said on TVNZ's Breakfast this morning.

"So if you take the extreme, Contact Energy was floated back in the late 1990s. It’s 100% private sector owned – and yet if there were rights and interests against the water used by Contact Energy that’s not going to stop anybody going and trying to register those rights and interests.

"Our government and previous governments have negotiated with iwi about those rights and interests, but we don’t believe a change in ownership in any way alters the capacity to recognise rights and interests (though arguably pending Treaty claims – already noted by the Australian Financial Review - could spook potential investors, dampening the price the government achieves by selling a 49% stake in four power companies)."

Asked if will we see the partial sale of any state asset before Christmas, Mr Key replied “I hope so.”

The programme is scheduled to begin this month with a partial float of Mighty River power.

On Friday, the Waitangi Tribunal said Maori had proprietary rights over water and the government should halt its privatisation policy while it changes the constitutions of its electricity companies to allow Maori input into how they are run.

Mr Key has previously said the government could ignore the Waitangi Tribunal's recommendation - and that any party that took a water claim to court was unlikely to suceed.

Today he said he was waiting for legal advice before making substantive comment. He anticipated that would not be until early next week.

Maori disagreement on right approach - Key
Mr Key said Maori were split on their approach to water rights. "There is a range of views," he said, noting that while the Maori Council was pushing its Waitangi Tribunal claim, Tuwharetoa paramount chief Sir Tumu te Heuheu said his group would like to advance iwi rights through continued discussion with the government, not through the courts. Sir Tumu supported the Water Forum (whose members include power companies, Fonterra and iwi. The group is assessing tradeable water rights).

The Prime Minister also sought to play down talk of a rift with National's coalition partner.

National, Maori Party have "good relationship"
"In terms of the Maori Party, we have a good relationship with them. We certainly disagree on a lot of issues. That’s just the nature of the relationship. I believe New Zealand’s been stronger for their involvement in the government,” Mr Key said.

"I think they’ve had a lot more wins in government that than [they would have had] in opposition."

He added, "And I don’t expect them to win on everything just like I don’t expect them to win on anything

"This always a big of debate over whether the relationship will fall over because we’re in a debate over another issue that we don’t particularly agree on. [But] In fact my experience of working with them is that they’re very mature and they understand that process and that actually sometimes we don’t win.

"I’m sure we can work our way through this issue, like we have others in the past."

Maori Party timetable more relaxed
But even if Mr Key can convince the Maori Party that a change of ownership is immaterial to legal claims on water rights, National's coaltion partner seems to have a more relaxed timetable - possibly putting a September float of Mighty River Power in jeopardy. 

Saturday, on TV3's The Nation, Maori Party MP Te Ururoa Flavell said it would be at least a month before his party reached a consensus on water rights.