Team New Zealand given $5m government handout to retain key members

The Economic Development Minister has said that the $5 million in government handouts paid to Team New Zealand is to retain key members of the team.

Simon Bridges told Radio Sport Breakfast the money is for the America's Cup winners to keep the team and key staff together, provided the defence of the Cup is held here.

"Basically Grant Dalton has been in communication with us and written to us, same as after San Francisco. They had a small budget to get them through to now and then it drops off a cliff," Bridges told Radio Sport Breakfast.

"We're giving them this $5m in instalments dependent on them providing us with good reporting; and allow them to retain their key staff, keep them all together and give them some breathing space while they find those corporate sponsors again.

Listen: Simon Bridges on the Radio Sport Breakfast

"This is for staff only and it's not for new staff and it is not for increases in their payments," Bridges said.

It's reasonably tight and locked in in terms of what it can go on.

"It's making sure, and I'm not suggesting this, that Peter Burling doesn't decide to go look elsewhere. That they feel like they've got the security, to get on with all the planning and detail stuff they need to do over the next few months."

Bridges says any further government money related to the America's Cup defence would be in terms of infrastructure development.

"This is something we would have done in any year - it stacks up - about tiding over Team New Zealand. The right thing to do."

*An earlier version of this story said The Economic Development Minister made it clear there woudn't be further government handouts to Team New Zealand. This was incorrect.