Prime Minister John Key is brushing off a major Maori tribe's threat of legal action against the mixed ownership model legislation.
The Government plans to sell up to 49% of state-owned Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy.
Ngati Tuwharetoa and the Tuwharetoa Maori Trust Board appeared before Parliament's finance select committee on Wednesday which is hearing submissions on the bill.
The central North Island iwi owns the beds of Lake Taupo, the lake's tributaries and the upper Waikato River which produce power for Mighty River Power and Genesis Energy.
The iwi says it originally allowed them to be used for electricity generation for the public good - not for commercial profit.
It also says it wants compensation for the use of the lake bed by Genesis and Mighty River Power for catchments and water discharge.
The Tuwharetoa Maori Trust Board says these issues need to be resolved before the legislation progresses and it is willing to take court action, including a possible injunction, if they are not.
However, John Key says he does not believe there are grounds for legal action and points out the Government has already made commercial profits from the generation of the electricity.
Labour MP Clayton Cosgrove says protests and polls show New Zealanders don't want the assets sold and the Government should realise the whole process is a mess.
