5 Mar 2012

Ngati Kahungunu chair worried by possible Treaty loophole

8:31 pm on 5 March 2012

The Chairman of New Zealand's third largest iwi is disappointed that legislation introduced in Parliament on Monday on the partial sale of four energy companies only requires the Crown to uphold Treaty obligations.

The bill includes the Treaty clause from the State-Owned Enterprises Act, but makes it clear it does not apply to persons other than the Crown.

SOE Minister Tony Ryall says it will be up to the partially-privatised companies as to whether they adopt a statement of corporate social responsibility.

Ngati Kahungunu's Chairman Ngahiwi Tomoana says he is relieved a Treaty clause has been added to the new bill.

But he is worried that future investors will be able to sell shares overseas because they are not bound by Treaty obligations.