The Prime Minister says the latest financial crisis with Tainui, which could see money to pay tribal staff drying up in 10 days, will not derail the treaty settlement process.
Helen Clark said yesterday that she did not have enough information to comment on reports that the Bank of New Zealand
was about to stop lending Tainui any more money because the iwi was struggling to repay $15 million it already owed.
"One iwi's problems with investments shouldn't stop the Government from settling in good faith with others," Helen Clark said.
Insiders claim that Tainui kingpin Sir Robert Mahuta is obstructing attempts to sort out a cashflow crisis with the tribe's main creditor, the Bank of New Zealand.
Tainui owes the bank $15 million and has other liabilities potentially worth at least $25 million, including several lawsuits by former staff.
This is in addition to the $40 million writedown and $31 million debt announced early this year. Sir Robert has not responded to Herald inquiries.
His daughter and Labour MP for Te Tai Hauauru, Nanaia Mahuta, last night declined comment on claims that her father was blocking progress on the financial crisis.
Nanaia Mahuta said Tainui was confronting the issues in a way that was appropriate to take development forward for the tribe.
She agreed with Helen Clark that the Tainui situation should not affect other treaty claims.
"The important thing about the resolution of historical grievances is that a settlement is negotiated as a result of historical injustices.
"At that point the Crown makes an agreement with iwi and then it's up to an iwi to determine its own affairs in terms of priorities for tribal development."
Angeline Greensill, daughter of the late Maori rights campaigner Eva Rickard, called on Tainui's newly elected executive committee, Tekaumarua, to stand up to Sir Robert.
"There are 11 of them and I believe they have the numbers to do something in terms of taking some of the responsibilities for commercial dealings off him."
However, she conceded it would not be easy because Sir Robert had been around a long time and he would not willingly give up what he perceived as power.
