(MENAFN) New Zealand Prime Minister John Key reaffirmed the government's plans to sell a state power company early next year after rejecting the idea of special concessions for indigenous people, Reuters reported.
Maori groups have threatened legal action over the decision, which could hinder the government's three to five-year program worth up to USD5.6 billion to sell minority stakes in three power companies, a coal miner, and the national airline, to help cut debt and bring back the budget to surplus by 2015.
Key said his center-right government would push through the sale of a minority stake in Mighty River Power between March and June next year, regardless of the threat of legal action.
The government has delayed a planned Mighty River stake sale in September to consult with indigenous Maori tribes on options to recognize their interests in water resources.
The government had rejected a suggestion from an advisory tribunal that Maori should get special rights over the management of water resources and should be given rights ahead of other shareholders in state power companies using water for generation, Key said.
The government sees that no group owns water, and that Maori rights in particular regions could be satisfied through other measures.
The government also said it will ensure New Zealanders get a preference in share sales, limit the size of individual holdings, and offer bonus shares to locals who hold shares for at least three years.
The government plans to sell a stake in a second power company, either Genesis Energy or Meridian Energy, by the end of next year. The two sales could be worth more than USD2.5 billion.
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