Mallard defends taxpayer contribution to Team NZ

1.00pm

America's Cup Minister Trevor Mallard today defended the Government contributing $33.75 million toward Team New Zealand's challenge to recapture the America's Cup.

He said the Government's contribution was an investment to get trade and tourism spin-offs.

The team confirmed yesterday they would challenge for yachting's top prize in Spain in 2007, with Emirates Airline as their major sponsor.

Toyota New Zealand returns as one of two second-tier "elite" sponsors. The second has yet to be found.

Mr Mallard said on National Radio today that Emirate Airlines was keen to develop their links with New Zealand.

He saw the Government's contribution as an important investment.

"The Middle East market is one that is enormously rich...one into which we've been looking to have trade links and this is an enormous opportunity."

Yesterday Team New Zealand managing director Grant Dalton said he was confident he had the right people to win back the America's Cup.

Dalton would not say what the budget was, although it was generally accepted that teams need at least US$80 million ($128 million) to run a serious campaign.

"We have set a number and we are at 85 per cent of that number," he said.

"Over the next year we will try to mop that up."

Yesterday Prime Minister Helen Clark said the Dubai-based airline's sponsorship for Team New Zealand would open trade and tourism opportunities in the Middle East.

"We're obviously now looking at the enormous opportunities for trade and tourism, and brand benefit for New Zealand," Helen Clark said at her post cabinet press conference.

"Having the Emirates involved is a window for New Zealand in the Middle East."

The Prime Minister said there had already been significant diplomatic and trade developments in the Gulf region, and a New Zealand embassy would open in Cairo in 2006.

"We're seeing it as a vehicle for promoting New Zealand in the Gulf as well as in Europe."

She said a lot of the money would be spent in New Zealand.

"Salaries are paid here, taxes are paid here, work on the boats is done here, most of the training is done here.

"All round we can put it to very, very good benefit."

The sponsorship was announced in Auckland yesterday morning when Team NZ confirmed it would challenge for the cup it lost to Swiss rivals Alinghi in March last year.

The syndicate is to be known as Emirates Team NZ.

Green MP Sue Bradford questioned the Government's priorities, saying it had "gifted" millions to an elitist sport while a third of all New Zealand children lived in poverty.

"The Government has indulged in voodoo economics by thinking that rich yachties can provide economic stimulus for New Zealand -- yet keeping our children out of poverty, out of hospital and away from a life of desperate measures won't," she said.

"Thirty-four million dollars ... might only average out to a daily latte for a well-heeled yachtie but the reality is that many families are forced to feed their children on less money each day."

- NZPA