Crown entered Rena agreement because of fear - lawyer

Waitangi Tribunal hearing at Trinity Wharf Tauranga in regards the future of Rena. Pictured: Ron Crosby, Judge Sarah Reeves, Professor Sir Tamati Reedy, Sir Douglas Kidd.

A Crown lawyer told the Waitangi Tribunal the Crown entered into a $10.4m agreement with Rena's owner and insurers because it feared they would walk away from the negotiating table.

An agreement between the Crown and the shipping company was signed in October 2012 in which it says $10.4 million would be paid to the Government if a resource consent is granted to leave the wreck on Astrolabe Reef.

Crown lawyer Karen Clark QC told the Tribunal today during an urgent inquiry into the Crown's conduct post the grounding to accept her assurances that the Crown had acted in good faith.

Ms Clark said in entering into the agreement which included a clause that assistance would be offered to Rena's owner with its resource consent application if required, the Crown did not believe it had breached its Treaty of Waitangi obligations, nor prejudice its position.

She said the clause was to signal to the ship's owners that filing a resource consent application would not be blocked but does not bar the Crown from opposing the application.

Ms Clark said the Crown entered into this agreement because as the salvage costs mounted it feared the shipping company could become insolvent or walk away from the negotiating table.

There would be a substantial cost saving to Rena's owners if the wreck was left on the reef, but by entering into $10.4m agreement the Crown had secured a share of those savings for the people of New Zealand, she said.

Ms Clark said the Crown the always intended to consult with iwi during the resource consent process, and had not yet decided its position in terms of the resource consent.

Motiti Rohe Moana Trust spokesperson Hugh Sayers begged to differ. Mr Sayers said the Crown had been "dishonourable and dishonest" in its dealings over the Rena grounding.

Mr Sayers said the Crown's dishonesty included it claiming it did not know who to consult while Crown law officials sat alongside Motiti iwi in an Environment Court appeal hearing in early 2012.

"The conduct of the Crown throughout since the Rena grounding has been dishonourable, and I say dishonest," he said.

Mr Sayers said the bottom-line was that wreck must be removed and the environment restored.

The inquiry continues today.