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