Kerre Woodham: Paying the piper by turning down the America's Cup - Kerre Woodham Mornings Podcast

Here we go again – the America’s Cup. How many times have you heard the debates for and against the America’s Cup? The Government, as you will have heard, has declined the opportunity to invest in hosting the America's Cup in 2027 and the usual arguments are raging over the wisdom or otherwise of that decision. Tātaki Auckland Unlimited (TAU) chief executive Nick Hill said it was with great disappointment that they were confirming that Auckland would no longer be bidding to host the 2027 America's Cup, explaining that Auckland's bid was contingent on a three-way funding partnership between Auckland Council, central government, and the private sector.  

MBIE informed TAU that the government is unable to provide the funds required and, on that basis, he said, he bid cannot proceed. He said the situation illustrates the need for a long-term, sustainable funding model in New Zealand to support major events, and there, I would agree. Rather than having it on an ad hoc, piece meal, “hey, what about this guys?” kind of a basis, having some sort of structure to provide funding for major events as they come along would be a very good idea. Viv Beck, from Auckland's Heart of the City, also expressed her disappointment ruing a missed opportunity.  

“The reason it's so disappointing is it's ripe for the picking. I mean, we've got the infrastructure, the economic benefits would be there and if there had been quicker action on finding alternative funding. I mean we understand that there are other priorities for the government, but growth is also a big opportunity, a big priority and you know the reality is that the GST alone could pay for that money. So I think with some imagination and will and determination it could have been a different result.  

“We know we don't compete internationally now. Often, we don't, we're a small country, we get that. But I think we do have to have the energy and drive and will to try and find ways to actually grow this, because events are a great way of attracting people here. It's not just a one-time wonder that people come and have a great time. I mean the benefits from trade and jobs, international profile. You look at Barcelona. I mean, imagine if we had that in 2027, something along those lines at a time where we really do need to have something that actually excites people, that we actually are growing and not just full of problems.” 

Yes, yes, yes. But at risk of stating the obvious, we aren't bloody Barcelona, are we? We're not in the middle of Europe, surrounded by nations who are just a fair wind filling a spinnaker away. We're at the bottom, next stop, Antarctica. The last time New Zealand hosted our economy was left $293 million worse off. That was the 36th America’s Cup in 2021, and that was according to an official cost benefit report. Auckland's economy alone was left with a financial deficit of $146 million, with a financial return of 72 cents back for every dollar put in. I am a financial and economic numpty, but even I can see that that does not make sense.  

To be fair, we were severely hampered by Covid-19, and according to the Trevor Mallard and the Clarke government – they crowed about the 2003 event, they said that generated around half a billion dollars of economic activity into the New Zealand economy which made the investment of around $10 million worthwhile. They said back in 2003, an extra 9360 full-time equivalent jobs were created. And while 85% of the extra economic activity was generated in Auckland, there was still a substantial effect in other regions as international visitors travel to other parts of the country.  

That was 22 years ago. The world is a vastly, vastly different place. Right now, an America’s Cup is a nice to have. It would be lovely, it feels great. I've been in Auckland for a number of Americas Cup’s, and they we