Iwi leaders took a strong stand against law changes to facilitate the sale of state assets in talks with Prime Minister John Key at Waitangi on Sunday.
Iwi leaders met with Mr Key, Finance Minister Bill English and other National MPs to discuss a number of issues, including Treaty of Waitangi obligations in plans to partially sell state-owned companies.
The issue has potential to split the Maori Party from the government coalition but Mr Key has expressed confidence that a solution can be found.
Maori Party co-leader Pita Sharples told NZ Newswire any decision to split from the government "remains with our electorates and these iwi leaders and they will advise us".
"The government needs to realise how vital this is to Maori," Dr Sharples said.
A unanimous decision was made by the iwi leaders that they would not budge and the law should be strengthened.
"It will be interesting to see what happens on the negotiation table and my job," Dr Sharples said.
Mr Key remains optimistic a practical solution that still maintains the Crown's responsibility when it comes to the Treaty can be found.
"I'm confident we're going to do that."
The government says private companies can not be bound by Treaty obligations.
Mr English and State Owned Enterprises Minister Tony Ryall are leading a consultation process with iwi around the country on the issue.
The State-owned Enterprises Act contains a clause committing the government to acting "in a manner consistent with the Treaty of Waitangi".
One alternative is to cover the companies with a Treaty clause that sets out the government's obligation as a 51 per cent shareholder.
The Maori Council is also expected to lodge claims with the Waitangi Tribunal to challenge the asset sales, arguing they affect Maori claims to water.
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