Rebuff to Maori petroleum claim clears way for Kupe sale

By RUTH BERRY, political reporter

The Government yesterday formally rejected the Waitangi Tribunal's findings that Maori should be given a stake in the multibillion-dollar petroleum industry, saying its arguments were not compelling.

It plans to go ahead with the sale of its 11 per cent share in the Kupe gas field to state-owned electricity generator Genesis Power, although claimants may seek injunctions to halt the sale.

When the tribunal report was issued in May, the Government said it had never believed the petroleum claims were valid, and its position had not changed.

The principal claimants, Nga Hapu o Nga Ruahine and Ngati Kahungunu, claimed the Crown's actions in nationalising petroleum in 1937 breached the treaty.

The tribunal found Maori had a "treaty interest" in petroleum arising from the loss of their land before 1937 by means that breached the treaty.

The interest also arose because the Crown had not offered compensation or royalty payments.

A Cabinet paper on the report reveals that officials did not find the treaty interest argument persuasive.

The paper takes issue with the report's assertion that the Crown's power to govern under Article 1 of the treaty "must be used to make good on Article 2 and Article 3 promises except in exceptional and clearly justifiable circumstances".

The officials said the test for exceptional circumstances outlined in the report created such a high bar that it would limit the ability of Parliament to legislate and the executive to govern in the best interests of all New Zealanders".

Nga Ruahine claimant spokeswoman Daisy Noble said yesterday the hapu was disappointed and was considering its next step.

Legal action to stop the Kupe sale was a possibility.

Energy Minister Pete Hodgson said the Government would continue to defend its position.

The tribunal is to issue a second report examining opportunities for Maori participation in the management of petroleum resources.

But Mr Hodgson appeared to dismiss the possibility the Government might acknowledge Maori had interests in petroleum.

"The tribunal will write papers as it chooses and we'll look at them," he said.

"But we've given a fairly firm steer, I would have thought."