Ownership of the foreshore and seabed traditionally lies with the Crown, not iwi, says Prime Minister Helen Clark.
Reacting to a decision by the Court of Appeal that has opened the way for a Maori claim on Marlborough, the Prime Minister said it would have no immediate practical effect on regulation of the foreshore and seabed.
"Ownership of the foreshore and seabed has long been considered to lie with the Crown and the Crown has made provision for regulation of its use in the national interest.
"In a democracy, citizens are free to explore what their legal rights are through the court system."
The Government "respects" attempts to explore legal rights through the courts, but would now consider how the issue should be resolved, she said.
The decision released last week opened the way for Top of the South Maori to go to the Maori Land Court with an ownership claim for seabed and foreshore in the Marlborough Sounds, from Cape Soucis to Port Underwood.
The decision caused outcry among opposition MPs, who claim Maori ownership would limit public access and use.
South Island iwi said those claims were unfair political posturing.
National MP Nick Smith said the decision would "open the floodgates to more Maori claims over beaches, estuaries, harbours and almost any stretch of coastline".
Iwi including Ngati Apa, Ngati Kuia, Ngati Rarua, Ngati Tama, Ngati Toa, Rangitane, Ngati Koata and Te Atiawa are claiming customary ownership.
Dr Smith said the whole issue had developed from confusion around the definition of land in the constitution of the Maori Land Court.
The situation could be fixed quite simply by amending the law to include a definition of land that did not include the sea, he said.
Associate Maori Affairs Minister John Tamihere said the nature and status of Maori rights on the issue had yet to be determined, but access was everyone's birthright.
He said under no circumstances would privately owned land be opened to contest.
West Coast-Tasman MP Damien O'Connor said the issue was of such significance that it warranted consideration by the whole Government.
"I'm sure Cabinet will be looking at it very carefully.
"There do seem to be very large implications for our area and for the whole of New Zealand. The important thing for us is not to panic, but to study the access implications of it very carefully."
John Mitchell, spokesman for the claimants, rejected suggestions that people should be worried about Maori seeking to restrict public access and use of the foreshore and seabeds.
"We have said repeatedly - we have shouted it from the rooftop - that the challenge here is not to the existing rights of the citizens of New Zealand."
But Maori did want a "greater stake" when sections of the seabed or foreshore were used for commercial operations such as marine farms.
Act treaty issues spokesman Stephen Franks said the ruling could delay policy decisions on marine farming and create legal problems for the Government.
Dr Mitchell said the concerns were "political claptrap and scaremongering".
The unanimous decision by five Court of Appeal justices said the iwi could take their case to the Maori Land Court.
Chief Justice Dame Sian Elias, who headed the bench for the case, said in the decision that iwi should be allowed to advance their claim.
"I agree that the legislation relied on in the High Court does not extinguish any Maori customary property in the seabed or foreshore."
Crown lawyers argued that the seabed and foreshore could not be considered customary land because it was inconsistent with previous legislation.
- STAFF REPORTER, NZPA
Seabed owned by Crown says PM
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