America's Cup funding gets $3 million boost

11.45 am

Government funding for yachting's America's Cup has risen to $8.6 million including extra spending announced this morning by Prime Minister Helen Clark and America's Cup Minister Trevor Mallard.

The Government invested $5.6 million in the cup in May 2000, with some of the money helping Team New Zealand pay crew after the shock departure of former skipper Russell Coutts and other sailors to highly paid foreign syndicates.

Miss Clark, due to go sailing on one of Team New Zealand's 2000 cup winning boats today, said in a statement the syndicate had been a wonderful ambassador for New Zealand.

Their success had a positive economic impact on the country.

"The Government is determined that the enormous opportunities offered by New Zealand's second defence of the America's Cup are not lost."

She said cabinet ministers had approved a number of trade, tourism, industry development and cultural initiatives to take place in conjunction with the Cup.

Miss Clark said a report about the 2000 Cup's impact estimated it generated $640 million of economic activity in New Zealand, most of it in Auckland.

She said similar funding announcements for promotions had been made following the making of The Lord of the Rings movie trilogy.

Mr Mallard said this week also saw the start of official government welcomes for challenging syndicates.

Some of the $3 million funding announced today would be spent on dedicated business facilitators, promotion of the marine industry and "Kiwiana/Pacifica" welcome packs for super yacht owners.

The tourism and trade departments are also flying 40 international journalists to New Zealand next month to see the country and to watch a buildup regatta to the cup.

The Louis Vuitton challenger series for the cup begins on October 1, while Team New Zealand defends the America's Cup from February next year.

- NZPA

America's Cup