Mana Party leader Hone Harawira says legislation relating to the Treaty of Waitangi is the last barrier stopping the sale of major strategic assets.
The Government wants to partially sell four State owned energy companies, but must change the current legislation in order to do so.
Mr Harawira told Morning Report the Treaty clause in the existing law is the only thing stopping the Government from flogging assets.
He said that even if the companies are sold to iwi corporate entities, they go into the hands of private owners and can and will eventually be bought by overseas interests.
Consultation hui are being held throughout the country this month.