NZ Prime Minister John Key today justified some of the government's plans for partial asset sales in his official address during the annual Waitangi Day breakfast.

Mr. Key discussed to his audience his thoughts on mining, asset sales and the Crafar Farms sale to a Chinese company.

His audience is composed of Kiwi leaders, officials and dignitaries.

The partial sale of assets would provide much needed capital for social investment such as upgrading schools, Mr. Key said.

On the matter regarding the Treaty, Mr. Key said that despite the Treasury's no-Treaty recommendation, the government is moving in a different direction. He said the Treaty would not be a casualty in the sale of assets.

"Treasury's view on life, more often than not, is dictated by what delivers the greatest economic performance... That is not necessarily in line with the range of issues that the Government of the day has to consider... Not all roads lead to the bank. Some lead to other parts of our community. On that basis, the Government's view is that there needs to be a Treaty clause for those companies that are taken out of the State Owned Enterprises Act."

He said the options were either a specific Treaty clause, or other options including a general Treaty clause, similar to section nine.

"The reason the Government favours a specific Treaty clause is on the basis of eliminating ambiguity - not because the Government wants to walk away from its Treaty obligations."

On the issue regarding anti-oil drilling protestors who disrupted his Te Tii Marae visit yesterday, Mr. Key said it was possible to expand exploration and mining activities in a way that was "sensible, environmentally sustainable and appropriate." He said the Government could not ignore the wealth and jobs that more mining would create.

Mr. Key stressed that a country that spends like a first world country should earn like one.

"New Zealand should have the best environmental standards and operating conditions, but if we are going to abandon every opportunity available to New Zealand then what we see is more Maori leaving New Zealand to go and live in Australia."

On the matter regarding the Chinese company Shanghai Pengxin, which received approval to buy the Crafar farms, Mr. Key said China was New Zealand's second largest export market and the government is exploring its "enormous potential to maximize" opportunities with China.

Mr. Key said the sales is part of the process of building stronger ties with China.

The issues Mr. Key discussed during his address are some of the most controversial issues on the political horizon in New Zealand today.