Extra $3m Cup costs 'a test of our mettle'

Auckland Mayor Len Brown. Photo / Natalie Slade

Auckland Mayor Len Brown led a decision yesterday to spend another $3.17 million on the Rugby World Cup, saying it was the right response to gaining three more matches from quake-damaged Christchurch.

Ratepayers are being asked to pay more than 80 per cent of the $3.78 million bill for hosting two quarter-final matches at Eden Park, the high-profile pool match between Australia and Italy at North Harbour Stadium and building a new broadcasting tower at North Harbour Stadium.

Mr Brown said Auckland did not want to pick up the Christchurch games, but as host city it had a responsibility to the country to deliver a "Rugby World Cup par excellence".

"If ever there was a test of our mettle, will and determination to genuinely deliver for the people of Auckland, this is it," Mr Brown said.

The council voted 12-7 to contribute $2.243 million of the $3.035 million for the three extra matches. It also agreed Auckland Transport would contribute $300,000 and the Regional Facilities council-controlled organisation (CCO) would pay $625,000 towards the new broadcasting tower.

The other $120,000 for the project will come from the stadium's trust.

The council went behind closed doors to debate a contribution from the Government and Rugby New Zealand 2011 towards a $492,000 shortfall for the $3.035 million bill.

Ratepayers are already paying $100 million for the Cup - $65 million for infrastructure that includes $10 million towards upgrading Eden Park, and $35 million on running costs.

A plea from Mr Brown to "put on your big city hats" and not get hung up on the budget got a mixed response at yesterday's council meeting.

Manurewa-Papakura councillor Calum Penrose said people were going through tough times and he wanted the Government or Rugby New Zealand 2011 to pick up the costs.

Waitemata & Gulf councillor Mike Lee said city ratepayers had more than pulled their weight on Cup funding, while Albert-Eden-Roskill councillor Cathy Casey said savings should be made in the $100 million budget.

Council chief executive Doug McKay said the budget would be examined. He said $545,000 would come out of underspent items in this year's budget and the Auckland Tourism Events and Economic Development CCO would contribute $700,000 from its 2011-2012 budget for events.

Franklin councillor Des Morrison said the council should make the Cup a success, but the new bill would push this year's projected rates rise from 4.9 per cent to 5.13 per cent "which I find unacceptable".

Mr Brown is already struggling to find $60 million in spending cuts to bring back a projected 9.2 per cent increase to 4.9 per cent.

A business case by the tourism and events CCO put the economic benefit of the extra games at $27 million to $40 million. But it was not lost on some councillors that the Government had bagged a positive economic benefit study on a $2 billion city rail loop.

DIGGING DEEP

Auckland Council: $2.243m
Auckland Transport: $300,000
Government, Rugby New Zealand 2011: $492,000
Subtotal:$3.035m
New broadcasting tower, North Harbour Stadium
Regional Facilities Auckland (council subsidiary): $625,000
Stadium trust: $120,000
Subtotal: $745,000
All-up extra costs $3.78m