One small consolation to this country at the last America's Cup was that the winner, Oracle Racing, had built its boat in New Zealand. It set up a subsidiary, Core Builders Composites, at Warkworth, employed skilled local people and with their help found the technological edge to come back from the brink of defeat by Team New Zealand and win every remaining race. It was one of the most remarkable comebacks in sport. Now the boat builder has been awarded public funds, possibly as much as $17.25 million over three years, under the Government's Callaghan Innovation granting scheme.
Team New Zealand is said to be unhappy, Labour MP Trevor Mallard says he is horrified. Many will agree with him but they should think again.
If taxpayers must be forced to subsidise business innovation - and that is the real issue - the granting criteria needs to be objective and consistent. It should be able to show potential economic benefit to the nation from the acquisition of technology and skills. To disqualify an applicant because it is trying to keep the America's Cup from New Zealand would be a mistake.
Winning and defending the Cup would also bring value to the economy but if rivals' access is blocked to research and development grants, winning becomes a bigger gamble. New Zealand would be putting all of its eggs in one boat, as it were. If Team NZ lost, the country would have little return of any kind from the Cup.
We can, and do, put all our hope in one boat on a sentimental level. Our emotions rise or fall with the performances of Team NZ. A competing syndicate, even if it is building its boats here, is unlikely to try to claim local support beyond the ranks of its employees, suppliers and guests, and it might be lucky to get theirs in a contest with the black boat. But when the Callaghan fund is invested in technological innovation, the nationality of applicants is not important.
