Four down, one to go - time to try for a tax deal

By EUGENE BINGHAM

Prada had hoisted the white flag before the last race in the America's Cup series, it emerged in Parliament yesterday.

Finance Minister Michael Cullen revealed that a Prada representative had visited him this week to ask about tax arrangements for the team's 2003 challenge.

Dr Cullen said a senior executive of the management team visited Wellington on Wednesday, when the Italians were 0-4 down in the first-to-five series.

But the normally sharp-tongued minister was charitable about the timing of the visit.

"Oh, they were thinking ahead," he said. "Obviously if they are four-nil down, it's a long way to come back.

"The issue the Italians were especially interested in was whether they could find ways of easing the [tax] difficulties they have if they start training more than 183 days a year in New Zealand.

"I couldn't tell them we wouldn't tax them, but what I could say was that we would make sure we improve the administration systems."

The revelation came during a parliamentary session in which everybody seemed preoccupied by the race going on 700km away in Auckland.

After watching the start, MPs ambled into the House for the regular question time at 2 pm.

It was not long before references to the Cup began, with Labour's Trevor Mallard first to the line.

"As Sports Minister, I just want to inform the House that at halfway, we're 48 seconds ahead."

National's Roger Sowry showed what was on his mind when he rose to object to a particularly long speech from Consumer Affairs Minister Phillida Bunkle.

"The minister continues to give answers that are longer than the length of the black boat's lead over Prada."

Not even the weighty issue of changing the nation's accident insurance system could distract MPs from the race.

Within minutes of the finish, a debate on the legislation bringing about the change was interrupted so parties could congratulate the crew.

Meanwhile, from high up in the Beehive, an important phone call was going through to Team New Zealand boss Sir Peter Blake.

Prime Minister Helen Clark is in Australia, so Alliance leader and Acting Prime Minister Jim Anderton made the official call to the team.

"All New Zealanders were with you every inch, or metre, or whatever measure you use on the water," Mr Anderton told Sir Peter.

He remarked on what a show of sportsmanship it had been for Russell Coutts to give up the helm of NZL60 to his understudy for the final race.

"What a great gesture from Russell Coutts to let young Dean Barker take the tiller today," said Mr Anderton.

The irony of his observation was not lost on Mr Mallard.

"I did note to Mr Anderton that it was interesting we had two B-team leaders leading the country in different ways today."