Budget threat to Auckland Games bid

A BID to bring the Commonwealth Games to Auckland in 2018 could founder as early as next month when government officials size up whether the astronomical cost of hosting the event (in the billions of dollars) can be recouped through infrastructure, tourism, jobs and intangibles such as positive self-image for the country.

A feasibility study that comes down firmly in favour of Auckland bidding for the event is the hands of Sports and Tourism Minister Murray McCully, who was unavailable for comment last week on the merits of the bid.

The closing date for bids to be lodged is March 31 and it's expected the government will decide in the next couple of weeks whether to back the bid. One source told the Sunday Star-Times the huge cost attached to hosting the Commonwealth Games, an event losing its lustre, could see the bid quashed by the government, which would have to invest heavily in the two-week festival.

However, if the bid gets the green light from government, there's a strong chance Auckland could win the right to host the event.

The only other city to have so far lodged its interest is Abuja in Nigeria. The Games have never been to Africa but counting against the Nigerian bid are the problems associated with the Delhi Games this year and the fear that it might be too soon to go to another Third World country, after Glasgow hosts in 2014.

The Gold Coast, in Australia, has indicated an interest in bidding but may be forced out if Australia wins the right to host the 2018 football World Cup. Trinidad and Tobago is also thinking of bidding.

The major costs in Auckland's bid are the building of an athletes' village, new aquatics centre, cycling velodrome and probably a new athletics facility (or at least an upgrade to either Mt Smart or North Harbour). Security and organisational costs will also be high.

Sources say those in favour of the bid point out that Auckland desperately needs a velodrome and revamped aquatics centre, while the athletes' village could be a mixture of permanent and temporary housing, with the permanent housing then becoming available for residential use in a city crying out for more homes.

The Auckland bid is understood to be heavily based around Eden Park, with the opening and closing ceremonies to be held there, along with rugby sevens and, in a critical move, Twenty20 cricket for both men and women. Twenty20 would be an ideal addition to the Games and would find favour among Caribbean and Asian nations.

Surprisingly, Auckland's much maligned public transport service was given the seal of approval by consultancy firm Events Knowledge Services, a subsidiary of the Commonwealth Games Federation.

It's understood Auckland's mayors are keen on the bid, as the Commonwealth Games would help put Auckland on the map as an events city and following the Rugby World Cup in 2011 and the Cricket World Cup in 2015 (co-hosted with Australia), a major event in 2018 would help build momentum towards that goal.

A KPMG report on the Melbourne 2006 Commonwealth Games said the total cost of hosting those games was almost $A3 billion. But it said the bulk of the money spent on infrastructure (around $A522 million) went to local industry and helped create jobs.

The report said there was a positive economic impact for Victoria, with a gross state product of around $1.6 billion over a 20-year period, with around half of the impact occurring in the year of the Games. The report estimated the Games created the equivalent of 13,600 fulltime jobs. The economic impact study also said the Games had a three-tier impact on tourism: bringing in visitors in the lead-up to the Games, during the event itself and for a prolonged period afterwards due to exposure.

The Auckland bid investigation was co-ordinated by the New Zealand Olympic Committee, Major Events, Sparc and the Auckland councils. If a bid goes ahead it would cost around $6m just to lobby for the right to host the Games.

- © Fairfax NZ News