Secret deal lands ratepayers most Cup traffic control costs

Queen St in Auckland. File photo / NZ Herald

Auckland ratepayers are paying the bulk of a $1.8 million bill for traffic management costs at the Rugby World Cup under a confidential agreement signed by former council bosses.

The chief executives of the former eight councils agreed for ratepayers to pay most the traffic management costs at Eden Park and North Harbour Stadium contrary to the normal practice of rugby users meeting all the costs.

The costs are part of a $35 million bill for running costs at the cup. Ratepayers are also contributing $65 million for infrastructure that includes $10 million towards upgrading Eden Park. Last week, the Auckland Council voted to spend a further $3.17 million on extra costs for three more matches from quake-damaged Christchurch.

Under a "host region agreement", signed in 2008 between council bosses and Rugby New Zealand 2011, ratepayers will pay $520,000 of the $828,000 for traffic management at the two stadiums. Rugby NZ's share is $308,000.

The agreement also commits ratepayers to a further $972,000 to cover all traffic management costs for the central business district, fan zones and public open days at training venues.

Costs include installing traffic cones, message and parking signs, temporary lighting towers and providing staff to manage traffic issues, particularly in streets around Eden Park.

Rugby World Cup event manager Rachael Dacy said the host region agreement was a "commercially sensitive document" that Rugby NZ did not want made public.

Auckland Tourism, Events and Economic Development spokesman Simon Roche said a multi-party contract with Rugby NZ was supported in principle by the Auckland Regional Sustainable Development Forum chaired by Mike Lee when he led the Auckland Regional Council.

Following this, the chief executives of the eight Auckland councils and trusts representing North Harbour Stadium, Bruce Pullman Park and Tourism Auckland signed the agreement. Projects in the agreement - but not the agreement itself - went through council budget processes.

Mr Lee, who is now a member of the Auckland Council, said he recalled a briefing by Ms Dacy to the forum, which was not a decision-making body.

He said the "important fact" of the hirers of stadiums normally paying for traffic management costs was not pointed out to the forum.

Ms Dacy said the amount contributed by Rugby NZ was the same as any event promoter would normally pay for using the stadium. Asked why Rugby NZ should not pay the full costs, Ms Dacy said the city decided the level of service that it wanted to provide to safeguard its reputation.

Rugby NZ tournament services boss Nigel Cass said its contribution was part of the agreement negotiated at the time Auckland tendered to be a host city.

Wellington City is paying about $20,000 in traffic management costs for each of its eight matches at Westpac Stadium and $40,000 to close Courtenay Place on the weekend of the two quarter-finals in the capital.

A council spokeswoman said Rugby NZ 2011 was not contributing to traffic management costs.