Taxpayers score America's Cup funding win

Last updated 16:54 27/03/2014

Relevant offers


AJ Hackett to open new "world's highest bungy" - in China New York enacts restrictions on Airbnb, with fines of up to $10,000 Court action on 'shonky' steel mesh creates pressure for government inquiry Female lawyers charge-out rates lag behind their male colleagues Weight Watchers campaign joins list of PR blunders Opportunist builders, dodgy steel and shonky standards create new building crisis 'worse than leaky homes' Troubled property developer Augustine Lau taken to court for toilets emptying into stream Skills shortage results in firms looking internally to fill roles, recruitment firm says Pumpkin Patch in trading halt - too much debt, not enough capital British American Tobacco offers to buy Reynolds in US$47 billion deal

The Government says the $36 million of taxpayer money used to send Team New Zealand to the America's Cup has been recovered more than twice over.

This afternoon Economic Development Minister Steven Joyce released an independent report into the "direct and indirect benefits" of entering the iconic yachting regatta.

"From a $36m taxpayer investment, the evaluation shows an estimated positive impact of $87m to the New Zealand economy," Joyce said.

Team New Zealand blew a comfortable lead to lose the series 8-9 to cup defender Oracle in San Francisco last year.

Sixty-six per cent of the campaign's funding came from international sources including sponsors, meeting the Government's requirement to find $2 for every $1 of State support.

The report said $153m, representing 85 per cent of the total campaign budget, was spent in New Zealand.

Joyce said one of the key benefits was the boost to New Zealand's profile in international media over the 55 days of racing.

However, opponents of the funding have pointed out that yacht racing is a niche sport with a relatively small global audience.

The Government has already made an interim investment of $5m to keep key team syndicate members for the next challenge.

A decision on further funding will depend on the business case Team New Zealand delivers.

Joyce said he had made it clear to the team that the Government needed to have confidence a stronger governance structure had been put in place.

He also released an evaluation into New Zealand Trade and Enterprise's business leveraging programme running alongside the America's Cup, that involved $3.9m of funding.

More than 200 companies from sectors including technology, food, wine, marine, aviation and tourism hosted former and potential clients during the event.

The report said cup activity had contributed to trade and investment deals worth $200m, as well as a further $120m of new sales opportunities and investor interest.

The reports were prepared by research firm Market Economics, and peer-reviewed by the New Zealand Institute of Economic Research.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content