11 December 2012

Maori: NZ Maori Council v. Attorney General


The High Court has dismissed out of hand legal action by Maori interests to delay government moves to sell down its stake in electricity generator Mighty River Power.  Some Maori claim ownership of the water which generates electricity by passing through Mighty River turbines.
The High Court did not need to decide who might own water.  It ruled that government plans to sell down its interests in Mighty River Power did not affect rights of water ownership, whoever might own the water.
In June 2012, government altered the legal status of government-owned Mighty River Power, changing it from a state-owned enterprise (SOE) to a mixed-ownership model (MOM) company.  This did not change the government’s ownership of Mighty River, it changed the legal structure under which the company operated.  Government plans to sell down a 49% stake in four of its electricity generation companies: Mighty River Power, Genesis Power, Meridian Power and Solid Energy.
Maori interests claim the proposed sell down may defeat pending Treaty of Waitangi compensation claims.  Once an asset passes from government ownership, no direct Treaty claim can be made against the asset.
In the High Court, Justice Ronald Young refused to block preliminary steps taken by government to achieve the proposed sell down.  Changing a company’s status does not alter the status of assets held by that company.
New Zealand Maori Council v. Attorney General – High Court (11.12.12)
12.035