America's Cup yachts will sail in safety says Mallard

By JULIE ASH

The Government is taking steps to ensure the America's Cup event is not disrupted by anti-nuclear protesters.

Following the alleged attack on the nuclear power-sponsored French yacht Le Defi Areva in France, America's Cup Minister Trevor Mallard said measures to prevent a similar act occurring in Auckland were being investigated.

"There is already some contingency planning work going on in regard to the protest area," he said at an America's Cup lunch in Auckland yesterday.

"The key thing from my perspective is to make sure the event goes smoothly when racing starts."

The hull of the new French yacht, FRA69, was damaged after protesters opposed to the nuclear energy sponsorship collided with it while it was docked in Lorient, a day after its official launch.

Mr Mallard said he was determined to ensure that the America's Cup event was not affected.

"A number of us are anti-nuclear. I was on the Rainbow Warrior the evening before it sank, but just as the actions of France were inappropriate at that time it would be inappropriate for protesters to disrupt this event."

It was important for New Zealand to be seen as a place where peaceful protests were allowed but illegal protests were not.

"The preventative work we are doing will ensure that doesn't happen. There is some clear planning going on and we do have some advantage in that area. We had Apec here a couple of years ago and we experienced organising high-security events."

Mr Mallard also announced that the Cabinet had agreed to a law change that would exempt crew of visiting superyachts from paying New Zealand income tax.

The marine industry had expressed concern the sector would lose millions of dollars of income as a result of superyachts not staying for refits.

"There is evidence that the way we tax the crews of the yachts ... was causing the superyachts to spend less time in New Zealand than they otherwise might have," Mr Mallard said.

"The Government had two choices: keep the tax law the same and have yachts and the refit business leave the country or change the tax laws, keep the vessels here and have it flourish. That is what drove our decision."

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