The Government plans to sell minority stakes in Mighty River Power, Meridian Energy, Genesis Energy and Solid Energy. It also plans to reduce its ownership of Air New Zealand.
South Island iwi Ngai Tahu negotiated a right of first refusal on all Crown land to be sold or made surplus within its rohe (area) as part of its 1998 settlement, as did Waikato-Tainui in an earlier settlement.
State-owned Assets Minister Tony Ryall confirmed this week the Government's position on the partial float of state assets in relation to iwi and their right of first refusal.
"Ministers do not consider that the rights of first refusal will have any significant impact on the shareholders of partially floated SOEs," Mr Ryall said.
"The nature of the rights of first refusal, and their continuing operation, is public knowledge ahead of the sale so can be taken into account by purchasers."
Last month, Te Runanga o Ngai Tahu kaiwhakahaere Mark Solomon confirmed that right would apply to SOEs earmarked for partial privatisation.
"All pre-existing rights under the [right of first refusal] remain in place - this applies to most land in Crown ownership as at the date of our settlement.
"It would only come into effect if the relevant land was being disposed of."
It was too early to say whether Ngai Tahu would buy shares in any of the asset sales, as "our focus is naturally on the Christchurch rebuild, but we keep an open mind on these matters".
Released information from the SOEs earmarked for a partial float shows Mighty River Power holds land titles totalling about 3737ha.
A spokeswoman confirmed no land sales were planned.
One property was subject to a first right of refusal, while two other properties were subject to protective memorials for any future Treaty of Waitangi claims.
The Meridian land portfolio is 10,000ha, including 4054ha of core land and land held for renewable development, 5560ha.
"Meridian conducts regular reviews of its land portfolio and land management strategy. Land is held in order to support development projects, existing assets, while maximising capital gain and revenue," a spokeswoman said.
Genesis owns 1673.5ha of freehold land. A spokesman said no land was marked for sale.
Solid Energy projects and mining systems general manager Dean Fergusson said land-holding in the South Island totalled 8293ha, including West Coast and Buller, 3652ha; Southland, 4442ha; Otago, 193ha; and Canterbury, 6ha.
"As part of our business planning, we regularly look at what land-holdings are needed for current and future projects and whether any of that land is no longer needed. At present, there are no significant parcels earmarked for sale."
University of Otago political studies department Associate Prof Janine Hayward said the principle behind the first refusal was a simple one, as the Crown at the time of the settlement was limited in what it could offer.
The right of first refusal was included because "it was another way to compensate for what Ngai Tahu lost".
Right of first refusal
• The Ngai Tahu Settlement included a right of first refusal (RFR).
• This mechanism, which will last forever, in respect of a defined range of assets, ensures Ngai Tahu will have the first opportunity to acquire a large range of Crown assets, at the current market value.
• These assets will become available to Ngai Tahu as and when the Crown chooses to sell them.
• Among other things, the RFR gives Ngai Tahu an opportunity to secure assets it might not be able
to get through other means and accumulate groupings of assets over time that can be used to the tribe's advantage.
• RFR is triggered when Crown agencies decide to "dispose" of the RFR assets.
• Dispose includes the sale of assets, and the issuing of long-term leases over the assets (50 years, including rights of renewal).
• In certain circumstances, the RFR is also triggered if the relevant assets are transferred into a company and that company is later sold.
• The RFR applied to an extensive range of assets in the rohe (area) owned by the Crown as at the date the deed of settlement was signed, but not to assets subsequently purchased by the Crown.
Source: Ngai Tahu
