Papers reveal Team NZ's secret bid for Government cash

Team New Zealand was secretly seeking taxpayers' money from the Government for a fresh challenge before it lost the America's Cup to Alinghi in a 5-0 whitewash.

The request is revealed in Cabinet papers released under the Official Information Act yesterday.

The Government has promised almost $34 million to the syndicate if it can mount a credible challenge.

America's Cup Minister Trevor Mallard said in a briefing paper for the Cabinet that Team New Zealand wanted increased financial support.

"Team New Zealand believes it will struggle to generate sufficient sponsorship income ... to meet the costs of mounting a successful challenge for the America's Cup, without increased support from the Government," he said.

The papers show the Cabinet approved an initial $5.6 million payment one day after the cup was lost, on March 2.

But a later Cabinet minute, on April 14, tightened the conditions for extra sponsorship money.

It rescinded the March 3 decision and imposed new conditions, requiring Team New Zealand to get the bulk of its budget established before it could claim extra Government money.

The next Cup will be sailed off Europe in 2007.

Team New Zealand have yet to say whether they will mount another challenge.

Further reading: nzherald.co.nz/americascup