Treaty of Waitangi settlements are set to hit the $1 billion mark as early as 2010, according to the latest Government briefing, with Ngai Tahu and Tainui set to negotiate for multimillion-dollar top-ups in addition to their original settlements.
Ngai Tahu, as part of its 1997 settlement, and Waikato-Tainui in 1995, negotiated a relativity clause entitling the iwi to a percentage of all future settlements if claims exceed the $1 billion fiscal envelope.
A briefing by the Office of Treaty Settlements to new minister Christopher Finlayson forecasts the $1 billion mark could be reached by 2010.
"There is a very real prospect of triggering the relativity mechanisms for Waikato-Tainui and Ngai Tahu in 2010-11 or 2011-12, depending on the progress of negotiations," the report noted.
Earlier this year, Mr Finlayson told the Otago Daily Times buying out the relativity clause was a possibility as the Government tried to settle all historic treaty claims by 2014.
"It is always an option," he said.
With a large number of settlements still to be completed, the relativity clause could cost the Government tens of millions of dollars in extra compensation.
Office of Treaty Settlements director Paul James said an annual relativity mechanism statement was provided to Ngai Tahu and Waikato-Tainui at the end of October.
"The agreed process allows Ngai Tahu and Waikato-Tainui time to formally respond and discuss the figures with us before any wider public release," he said.
A Ngai Tahu spokesman said the iwi was not in a position to comment on the statement.
The iwi continued to keep a "watching brief" on the outcome of other settlements, he said.
As of October, completed settlements were estimated in 1994 dollars at $831 million, according to figures released by then treaty negotiations minister Michael Cullen.
