State-owned power companies that are going to be partially sold have to be removed from the State-Owned Enterprises Act, the Government says.
Ministers will next week start consulting Maori on the sales through a series of hui and the Government's intentions have caused confusion.
The Maori Party and the Mana Party yesterday accused it of planning to scrap the Treaty of Waitangi clause in the legislation and of trampling on Maori rights.
They say the clause would stop the sales because it commits the government to acting "in a manner consistent with the Treaty of Waitangi" and Maori don't want the sales to go ahead.
They also say Maori have rights over the water the hydro stations use.
"When we announced the partial share floats last year we said we would consult Maori and that's what we're doing," says State-Owned Enterprises Minister Tony Ryall.
"In order to offer minority shareholdings in the four energy companies to New Zealand investors, those companies have to be removed from the SOE Act because it doesn't allow shares to be sold."
Mr Ryall says the power companies do not own the water they use.
"There are well-established processes for water management through the Resource Management Act and that will remain the same regardless of the SOEs' ownership."
Mr Ryall will draft legislation to take the power companies out of the SOE Act and it isn't yet clear whether there will be any reference to the treaty in his bill.
The government is going to sell 49 per cent of shares in Meridian Energy, Mighty River Power, Genesis Energy and Solid Energy.
NZN