Smith denies Maori deal to cost $2b

The Government is set to announce a deal with the Maori Party over its emissions trading scheme in return for a package worth millions of dollars to iwi.

It is understood negotiations with a group representing Maori claimants ended at the weekend, and that the Maori Party has agreed to support National's amended scheme.

An announcement on the deal – including taxpayer costs – is expected today, after being signed off by Cabinet.

Tomorrow, the House will go into urgency to debate the legislation.

The Government wants the bill passed by Thursday, so it can be taken to the Copenhagen climate-change meeting on December 7.

It is understood the deal centres on the provision of 30,000 hectares of Crown-owned land for forestry plantation, with the carbon credits going to five iwi – mainly South Island tribe Ngai Tahu.

Iwi will get money to pay for tree planting.

However, the value of the package to Maori is hotly disputed.

In a leaked email sent to iwi leaders by the head of the negotiating group, Willie Te Aho, the deal is worth up to $2 billion to Maori, depending on carbon prices.

The email cites a news report mentioning the figure as "closest to the mark", but it says it could change.

"If the negotiations are concluded favourably on Monday by the Maori Party, then we will effectively have till February 2010 to finalise the detail of this iwi afforestation proposal," the email says.

Yesterday, Climate Change Minister Nick Smith rubbished the figure, saying the total settlement cost was less than the $70 million to $120m Ngai Tahu claimed it had lost from forest value.

A Treasury valuation of carbon credits to Ngai Tahu is understood to be $25m, at present value.

Other leaked documents show iwi leaders appear to have secured extra help for the fishing industry, with carbon units to be awarded on the basis of fish quota.

A Treaty clause has also been included, with an obligation on the Crown to consult with Maori on any emissions trading scheme review.

However, a bid by iwi leaders to make taxpayers liable for the cost to Maori if they cut down the plantations has been rejected.

There is controversy within Maoridom over the deal.

The Federation of Maori Authorities wrote to Smith at the weekend expressing "major disappointment" at the proposal, which it said was unfair to all Maori in its current form.

Smith refused to comment on negotiations last night, but confirmed a deal was imminent.

He said claims of a $2b windfall for Maori were "grossly misleading and inaccurate".

Labour said National was sending an uncosted bill to future taxpayers.

"Billions of dollars are now being added to that bill, with no obvious benefit to individual Maori," spokesman Charles Chauvel said.