Maori Party urged to stay firm on asset sales

Meridian Energy's Te Apiti Wind Farm on the Ruahine Ranges Ross. Up to 20 percent of the company could end up in iwi hands, if it's partly sold, according to Ngai Tahu chair Mark Solomon. Photo / Ross Setford

The Maori Party needs to stand its ground and refuse to support National's plans to sell off shares in state assets, New Zealand First leader Winston Peters says.

National has said its strong win in Saturday's election has given it a mandate to begin its partial asset sales programme, which it calls a "mixed-ownership model''.

Under the model, up to 49 per cent of the Crown shares in the four power companies and Air New Zealand will be sold, but the Government will retain the majority stake in each of the companies.

The Maori Party has consistently opposed asset sales, but has said if sales go ahead iwi want to play a major role in the process.

Maori party co-leaders Pita Sharples and Tariana Turia are due to meet Prime Minister John Key this afternoon to discuss joining National in Government in a confidence and supply agreement, and Mr Peters urged them to stick to their guns when it came to asset sales.

"If your policy opposes asset sales, you can't suddenly say you will allow it if Maori can have a slice of the action. You can't stand with one leg on each side of a fence because it gets very painful,'' Mr Peters said.

"Asset sales will not help Maori. It will lead to further impoverishment and lack of opportunity.''

Meanwhile, Ngai Tahu chair Mark Solomon told Radio New Zealand this morning that a consortium of tribes were interested in buying a large stake in the power companies.

"What we like about infrastructure is it's good long-term investment and it's allowing us to invest in our own country.''

The partnership would work because iwi would not on-sell the shares overseas and would reinvest dividends in New Zealand, he said.

Mr Key told media he is keen to get the programme underway quickly, but that a lot of work had to be done to make the sales possible, including changes to the State Owned Enterprise Act.

While he acknowledged that some New Zealanders were anxious about the sales, Mr Key said the overwhelming support for National showed the party had a mandate.

Mr Key told Newstalk ZB this morning that the exact order of state assets to go on the block is unknown.

Genesis and Mighty River could be the two likely contenders to be first because they are closer to being ``ready to go'', he said.

Mr Key said the markets would prefer Solid Energy and its new chief executive to have a little more time.

Treasury and the Minister of Finance will work on priorities and then Cabinet will decide, he said.

Mr Key said his guess was the government would be able to begin the programme sometime next year.