KEY POINTS:
Rugby World Cup Minister Trevor Mallard is giving no assurances that the Government will give more than $20 million towards a $320 million upgrade of Eden Park.
The cost of upgrading Eden Park has rocketed from $100 million at the time of New Zealand's bid last November, to $320 million for a permanent "legacy" option, with no one committed to paying the extra cost.
Auckland City residents have expressed strong opposition to paying towards the upgrade after being hit with an average 13.4 per cent household rates increase this year.
Mr Mallard said the bid proposal to host the event was a combination of temporary and permanent upgrades to Eden Park. The $20 million from the Government and $10 million from the New Zealand Rugby Union included the temporary part of the upgrade to raise the capacity of Eden Park.
Funding the permanent part of the upgrade was always the responsibility of the Eden Park Trust Board, Mr Mallard said.
However, he said the Government was happy for the $20 million to be used for a permanent upgrade, subject to approval from Rugby 2011, the group charged with organising the event. Rugby Union chairman and Rugby 2011 chairman Jock Hobbs was happy for the union's $10 million to go to the temporary or permanent aspects of the upgrade.
Asked if the Government would dig deeper into the taxpayers' purse for the $320 million upgrade, Mr Mallard said any further investment would "be taken under careful consideration based on the economic benefits" gained from the event and the potential benefits of hosting other major events.
In November last year, a Treasury worst-case scenario suggested $70 million of public money may be needed over six years to underwrite the secret tournament fee paid to the International Rugby Board, an increase in seating at Eden Park to 55,000 and organisational costs.
Auckland City Mayor Dick Hubbard said he did not know how the Eden Park upgrade would be paid for, nor how much ratepayers would contribute. Council had put aside $100 million for international facilities such as Eden Park and a convention centre but no decisions had been made on spending it. The council also had to take into account other issues to get the city ready for the event, including transport, the upgrade of the central business district and completing the first stage of the Tank Farm waterfront development to host fans.
Mr Hubbard said it was his understanding that temporary stands at Eden Park would only provide seating for 55,000 people and that to meet the commitment made to the IRB to increase the ground from 47,500 to 60,000 seats would require a permanent structure.
Last night, Mr Hobbs said the original bid documents lodged with the IRB in May last year included figures of 55,000 and 60,000 seats for Eden Park, but during the later stages of the bid a commitment was made to provide 60,000 seats. That was stated in the final bid at Dublin in November.
Eden Park development committee chairman Rob Fisher said several options were looked at and discarded to expand Eden Park to 60,000 seats.
"The legacy option was chosen by the trust board because it delivers a much better result to the local community and spectators. The temporary option would still require significant cost with no benefits beyond 2011. It would be money down the drain," Mr Fisher said.
The public can make submissions between Monday and September 8.
Other upgrades
* Dunedin's Carisbrook is to be replaced at a cost of between $150 million and $180 million in time for the 2011 Rugby World Cup. The University of Otago will be a major financial partner to use the facility for its School of Physical Education. Other funding sources include naming right sponsors, ground members, Community Trust of Otago, corporate sponsors, shares, bonds, and the Dunedin City Council and Otago Regional Council.
* Jade Stadium is in for a four-year $60 million revamp that will increase permanent seating by 7000 to 43,000 for the 2011 Rugby World Cup. Much of the funding will come from the private sector and stadium partners, with the rest expected to be provided from local and central Government sources and charitable and sporting trusts.
Ratepayers' views
I can understand the need for council to spend on essentials, but Eden Park?
- John Clark, St Heliers
I don't mind paying rates for rubbish collection and the upkeep of footpaths and all that, but not Eden Park. We are not a bottomless pit.
- Chris and Miri Dessa, Sandringham
I don't recall any ratepayers' mandate to Auckland City Council to assist in paying for the expansion of Eden Park.
- John Parker, Mt Eden
How can it cost $68 million to build the 14,000-seat Vector Arena from scratch and yet $320 million to add 15,000 seats to Eden Park?
- Daniel
I am so opposed to spending on Eden Park ... this will be a great white elephant for the future sitting in the middle of a residential area.
- Michael Rice
Why should present ratepayers, particularly superannuitants, be rated to pay for improvements to Eden Park when they will probably never go there?
- Bernie
