Size of Team NZ's request for Government cash kept secret

Economic Development Minister Steven Joyce. Photo / Mark Mitchell

The Government will not say how much taxpayer cash Team New Zealand have requested to help bankroll their next tilt at the America's Cup.

Documents about public funding of the yachting syndicate sought by the Herald through the Official Information Act were either heavily redacted or withheld by officials acting for Economic Development Minister Steven Joyce.

Citing the public's right to know how its money is spent by public officials, the Herald has lodged an urgent appeal with the Ombudsman.

Information kept secret includes the amount of money requested for the current campaign, and details of how the $5 million provided so far has been spent.

In an email to the Herald a spokeswoman for Mr Joyce said the America's Cup represented "a highly competitive and commercially sensitive environment, and release of budget and funding information of this nature would be likely to unreasonably prejudice the commercial position of Team NZ, providing advantageous information to competitors".

There was no explanation as to why knowing how much taxpayer funding Team NZ had requested would help the syndicate's competitors, which are all privately owned.

The spokeswoman did say the public purse would not be drained by any more than the $40.05 million handed out during the yachting syndicate's last, unsuccessful campaign.

Documents released to the Herald indicate the yet-to-be confirmed venue could affect how much money Team NZ get, - San Diego seemingly the Government's preferred option ahead of Bermuda of the two possibilities being considered by holders Oracle Team USA.

An America's Cup update prepared by officials for Mr Joyce in July says Bermuda is considered a "showstopper" by two syndicates, which may not enter the event if the Caribbean island is chosen. The syndicates' names are redacted.

Bermuda's offer to host the event tax-free is seen as favourable to privately funded teams, while San Diego's access to larger American markets may offer greater opportunities for sponsors - a key criteria in the allocation of Government funding.

On May 19 Mr Joyce's officials received a Team NZ business case, which will be updated once the venue is confirmed. The Cup's protocol dictates that must be by December 31.