Auckland Council is considering another $20m for the America's Cup. Photo / Michael Craig
Auckland Council is considering another $20m for the America's Cup. Photo / Michael Craig
The Government's decision to freeze funding to America's Cup organisers is unlikely to sway plans by Auckland Council to pour more money into the regatta.
The council has a proposal in its "emergency budget" to spend another $20 million for managing traffic, organising fan zones and other services such as security.
The council and the Government have poured $250 million into hosting the 36th America's Cup. The council's share of the $250m is $113m. The Government is spending $136.5m, including a host fee of $40m.
On top of this, the council has been spending about $100m to spruce up the waterfront in time for the cup in 2021.
Yesterday, the Ministry of Business, Innovation and Employment said it had suspended public funding as it investigates claims over the spending of public money.
MBIE said of the $40m set aside for the hosting fee, $29m had been paid to America's Cup Events (ACE) in line with contractual funding milestones.
Auckland Mayor Phil Goff said the extra $20m was still to be approved in the budget process.
"This will only be spent when the event itself is held; it is not being spent now. This amount is half of what was initially proposed earlier in the year," he said.
Auckland Mayor Phil Goff. Photo / Dean Purcell
Goff said, if approved, the money would be spent by Auckland Transport and Auckland Tourism, Events and Economic Development (Ateed), "not ACE".
"Expenditure of this nature is required whenever large-scale events, such as the Rugby World Cup, previous America's Cup events and the Masters' Games are held in the city," Goff said.
Ateed chief executive Nick Hill. Photo / Brett Phibbs
Ateed chief executive Nick Hill, who chairs the AC36 Joint Chief Executive Group (JCEG), said Ateed, Auckland Transport and Panuku Development Auckland had always indicated additional funding would be required to support the city's operational requirements for hosting the event.
He said the funding was required to support the delivery of aspects for a mega event which fell outside the jurisdiction of ACE and were part of Auckland's host city contractual obligations outlined in the Host Venue Agreement.
"Unlike other large-scale international events, the America's Cup takes places on the water, rather than in a contained stadium, which means the city obligations for hosting a safe and secure event are far greater.
"We need to ensure a live sports event can take place in a working, commuting harbour and functioning city for an extended period," Hill said.
He was unable to provide a detailed breakdown of the $20m budget until after the emergency budget is adopted later this month.
Councillor John Watson agreed with Hill the council was obliged under the Host Venue Agreement between the council, Government, Team NZ and ACE to deliver things like traffic management and safety for the event.
He said $20m was a lot of money in the current environment and could require some examination from the effects of Covid or a loss of public interest in the cup.
