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

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

Episode Transcript

Speaker 1 (00:06):
You're listening to the Carrywood and Mornings podcast from News Talks.

Speaker 2 (00:10):
He'd be 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 twenty twenty seven, and the usual arguments raging

(00:31):
over the wisdom or otherwise of that decision. Shortsighted, hardly
open for business. If we're saying no to doing business,
that's those who are for hosting the event those against.
Quite right, we haven't got the money. How can you
possibly spend money on a sailing competition for billionaires when

(00:54):
the waiting lists are so long? Tartaki Auckland Unlimited Chief
executive Nick Hill said it was with great disappointment that
they were confirming that Auckland would no longer be bidding
to host the twenty twenty seven America's Cup, explaining that
Auckland's bid was contingent on a three way funding partnership

(01:15):
between Auckland Council, Central Government, and the private sector. MBA
informed TAU that the government is unable to provide the
funds required. On that basis, he said, the bid cannot proceed.
He said the situation illustrates the need for a long
term sustainable funding model in New Zealand to support major events,

(01:39):
and there I would agree you do need to have
rather than having on an ad hoc piecemeal. Hey, what
about this guy's 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. Vivbeck from
Auckland's heart of the city, also expressed her disappointment ruing

(02:01):
a missed opportunity.

Speaker 3 (02:02):
The reason it's so disappointing is its right 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 of government, but growth is also a big opportunity,
a big priority. And you know the reality is that

(02:23):
the gest alone could pay for that money. So I
think with some imagination and will and determination it would
have been 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

(02:43):
to try and find ways to actually grow this because
you know we do and then 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 twenty twenty seven, something along those lines at a

(03:06):
time where we really do need to have something that
actually excites people that we actually are growing and not
just full of problems.

Speaker 2 (03:15):
Yes, yes, yes, that's for Beck from Auckland's heart of
the city. 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 of
the I mean, next stop Antarctica. The last time New
Zealand hosted, our economy was left two hundred and ninety

(03:39):
three million dollars worse off. That was the thirty sixth
America's Cup in twenty twenty one, and that was according
to an official cost benefit report. Auckland's economy alone was
left with a financial deficit of one hundred and forty
six million, with a financial return of seventy two cents
back for every dollar put in. I am a financial

(03:59):
and economic numpty, but even I can see that that
does not make sense. To be fair, we were severely
hampered by COVID nineteen and according to the Trevor Mallart
and the Clerk government, they crowed about the two thousand
and three event. They said that generated around half a
billion dollars of economic activity into the New Zealand economy,

(04:24):
which made the investment of around ten million dollars worthwhile
they said back in two thousand and three and extra
nine three hundred and sixty full time equivalent jobs were created,
and while eighty five percent of the extra economic activity
was generated in Auckland, there was still a substantial effect

(04:46):
in other regions as international visitors traveled to other parts
of the country. That was twenty two years ago. The
world is a vastly, vastly different place right now. An
America's Cup is a nice to have. Be lovely, be
really nice to have an America's cup. It feels great.
I've been in Auckland for a number of America's cups

(05:08):
and they were fantastic feel good affairs. You know, they
boost a morale, and you know, the bars and restaurants
to a roaring trade and everyone with a bit of
cash has a jolly good time. It's an absolute jolly.
But then I'd like to put a pool in the
backyard too, and I think ultimately it would have economic benefits,

(05:31):
you know, ultimately it would pay off. I could make
that case that if I put in the money now,
then I could put in the pool and get the
payoff later. Well, except it's nice to have right now,
there are other priorities, and I would say the government
is absolutely damned if it does and damned if it doesn't.

(05:54):
This is the price we pay for spending up over
the last few years. I'm sure we could find the money. Admittedly,
this government doesn't have Grant Robertson's knack of finding millions
down the back of the couch. He always seemed to
pop up with sixty million just when it was needed,
or you know, twenty million here. But what do the

(06:15):
optics look like? Cutting the ribbon at appeared down to
need in hospital, while Auckland has a knees up on
board boats and drinking champagne. Sure that's gonna look fantastic,
isn't it. Labor'd be bleating away about your unnecessary expense,
and look at the waiting lists. They're absolutely damned if

(06:36):
they do, damned if they don't. We were warned, wise
Souls told us on the show during Labour's hootswah spend
up hey, plenty of taxpayers money to go around, that
ultimately we would have to pay the piper. And this
turning down the opportunity to host An America's Cup is
what it feels like.

Speaker 1 (06:56):
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