The Government's being warned that holding back shares in partial asset sales for Maori, could cause ructions between iwi.
Finance Minister Bill English has met with Central North Island iwi Ngati Tuwharetoa over the iwi's rights as legal owners of the lakes and rivers used by Mighty River Power and Genesis.
Maori Council solicitor Donna Hall says showing favouritism to one tribe is dangerous.
"It's also divisive because what it does is it recognises one lucky group's fortunate circumstances but it fails to look at all the other tribes in the country."
Ms Hall says while Ngati Tuwharetoa has a good case - so do other iwi around the country.
"The politicians here in New Zealand don't need to panic and make statements that could end up dividing Maori very badly because only one group is recognised and all of the others in the country, especially the north, get ignored. That's not helpful."
She says an urgent Waitangi Tribunal hearing over the partial sale will take place next month.
"The groups that are in the tribunal to start on July 9, they're very committed to proceeding to put their case, so they're not going to go and do anything else. They've made a decision and they're going to carry on with that."
The hearing will address the Maori Council and 11 other groups' belief the sale breaches the Treaty.