The Government’s asset sales plan has again hit turbulence with Cabinet delaying the removal of Mighty River Power from the State Owned Enterprises Act.
The High Court indicated this morning the Government should hold off on starting the sale process for the company so the issue can be fully debated in court.
The Government has heeded that advice.
The process to partially privatise the company was planned to officially begin today with Cabinet’s approval followed by an order-in-council by Governor General Sir Jerry Mateparae.
However, in the High Court at Wellington today, Justice Ronald Young advised the Government to hold off and get the issue sorted in court beforehand.
“I can’t understand why it [the order in council] has to happen this week,” says Justice Young.
Justice Young is presiding over the Maori Council’s legal action against the Government.
He says the Cabinet meeting today to authorise the order-in-council would be a “self-imposed limitation”.
“Presumably, we all agree nothing should be done in the interim that would prejudice these proceedings,” says Justice Young.
This morning, Prime Minister John Key indicated the Government would follow the court's wishes.
The decision to hold off on the order-in-council means a month-long judicial review will be heard at the end of November.
If the Government forged ahead, further court action could have delayed the partial sale even further.
A ruling from the judicial review is expected in January.
The Government plans to float 49 percent of Mighty River Power in March.
Crown lawyer David Goddard QC wanted the hearing to be earlier but was shut down by Justice Young.
“A hearing within a month is pretty speedy, given the significance [of the issue]…You could have hardly expected it to be quicker,” he says.
Justice Young has proposed to have two judges preside over the review when it starts on November 26.
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