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Mallard: Govt Backing Of America's Cup Team Pays Dividends

Contributor:
Fuseworks Media
Fuseworks Media
trevor-mallard.jpg
trevor-mallard.jpg

21 August 2008 - The government's $33.75 million investment in Emirates Team New Zealand boosted the New Zealand economy by around $2 for every dollar of public funding, Associate Finance Minister Trevor Mallard said today.

An independent report on the government's 2003 investment in the team's challenge for the 2007 America's Cup shows a significant impact on the New Zealand economy.

Just as importantly, the Market Economics report shows there were less tangible but significant benefits from the event in terms of New Zealand's marine industry.

"The report shows the America's Cup continued to provide an ideal opportunity to showcase New Zealand's boat-building, sailing and design talent and it's also good to know the projected return on the government's investment was better than we expected," Trevor Mallard said.

The report shows the kiwi team's cup preparation, which began in April 2003, and the subsequent race to be the challenger in August 2007, added an extra $62.2m-$74.4m to New Zealand's gross domestic product (GDP).

The challenge for the America's Cup meant 750-900 more full-time-equivalent jobs over the America's Cup campaign nationwide.

The direct and total return to government in the form of additional tax revenue from the campaign was between $32.4 million and $39.4 million.

The return on the government's investment in Emirates Team NZ was greater than a 2003 estimation of $35-$53m, partly because a greater share of the team's funding ended up coming from overseas.

The report found the team's 2007 campaign helped sustain the momentum of America's Cup activity in the marine sector and meant expertise stayed in New Zealand instead of transferring to overseas syndicates.

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