Team New Zealand scores $5m taxpayer top-up

The government has revealed it is to invest $5 million in Team New Zealand to “to ensure it can retain key staff” while planning for the next America's Cup regatta.

Economic Development Minister Simon Bridges says Team NZ displayed incredible talent and innovation during the 35^th America’s Cup campaign.

“This investment of $5 million will go some way toward protecting the valuable intellectual property, experience and skills that rest with key team members,” he says.

In his weekly post-cabinet press conference today, Prime Minister Bill English told reporters there are some conditions attached to further government funding to “ensure it’s used for the purpose on which it’s granted.”

One such condition, Mr English says, would be the yacht races being held in New Zealand.

“Certainly any government assistance, in my view, should be conditional on [the races] being [in New Zealand.”

But he says the defenders have already indicated they would like to hold the next regatta here.

That would mean New Zealand would host to both America’s Cup and Apec in 2021.

Mr English says it’s not his, or the government’s, intention to put more pressure on Auckland than “is necessary.”   

Asked if this meant bringing some infrastructure funding for the City of Sails forward, he said that was a possibility.

“This is a pretty recent addition to the exciting future in Auckland and we have been working with the council on whether the current plan meets all of Auckland’s requirements.”

The payback

In an earlier written statement, Mr Bridges said although the location for the 36^th America’s Cup has not been decided yet,  "we do know that hosting a regatta in New Zealand has the potential to generate significant economic benefits."

The 2000 and 2003 cup regattas hosted in New Zealand in 2000 and 2003 had a significant impact on the New Zealand economy generating $500 million of total value added per regatta, particularly in the marine and tourism sectors, Mr Bridges says.

New Zealand Trade & Enterprise also held a successful business leverage programme at the 34th America’s Cup in San Francisco in 2013 which generated trade and investment deals for New Zealand worth $200 million and a further $120 million of new sales opportunities and investor interest, he says.

The National-led government invested $5 million after the 2013 loss to keep Team NZ afloat but decided against funding its challenge for the cup.

ACT Party leader David Seymour is not keen on the government tipping more money into Team New Zealand, saying it’s not the government’s job to fund yacht races, calling it “corporate welfare.”

Greens’ co-leader James Shaw was on the same page, saying his party is “against corporate welfare and subsidies.”

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