Whanganui District Council agrees to underwrite next year's Master Games

Whanganui District Council members in the chambers this week. Photo / Bevan Conley Mike Tweed

The new Whanganui District Council has almost unanimously agreed to underwrite next year's Masters Games in the city.

While there was no limit, last year the council underwrote the Whanganui Masters Games Trust up to the value of $500,000 if the event had been cancelled due to Covid-19.

Council chief financial officer Mike Fermor said the games were effectively a council event, run by the trustees on its behalf.

"The last three years have demonstrated that a completely unanticipated event, however remote, can happen and can cause the cancellation of major sporting events."

Fermor's report to the council states that the New Zealand Masters Games company owns the games' brand and has franchise agreements in place with trusts in Whanganui and Dunedin to run the event on alternate years.

The Whanganui Masters Games Trust owns 51 per cent of the company, and Whanganui District Council owns the remaining 49 per cent.

Any debts not able to be met by the trust itself would be covered by the council by way of a letter of comfort.

Council chief executive David Langford said that it had made a commitment to financially support the trust if something happened outside of its control and not something the trust could be "reasonably expected to plan for".

"It doesn't strictly have to be a cancellation," Langford said.

"Council will provide the support to make sure the trust can carry on into the future and isn't burdened with that loss."

Whanganui District Council chief financial officer Mike Fermor. Photo / Bevan Conley

Councillor Peter Oskam said he was "uncomfortable with the letter of comfort", and was the only councillor to vote against the motion.

"Surely, you wouldn't need it if we are a responsible shareholder. We would cover it anyway, no matter what."

Councillor Rob Vinsen said the cancellation of this year's Dunedin Masters Games had cost Dunedin Council around $200,000 and asked whether a similar amount could be expected in Whanganui.

Fermor anticipated it would be well below the $500,000 figure from last year.

"We can put a dollar figure on this, but will it achieve anything? I don't think it will.

"There is potentially a moral and reputational risk for our games if we left some business out there hanging with losses."

Vinsen said he was sure the Masters Games would be a huge success.

"Management does a wonderful job there and they're so financially prudent that I don't blame them for asking for this letter of comfort.

"We (council) only put in $100,000 per games, yet there is $3 million returning to the local economy."

Masters Games event organiser Heather Cox said as of Tuesday, there were 1092 registrations, with 291 of those local.

"That happens every year, it's usually about two-thirds coming from outside of Whanganui," Cox said.

"We have 48 international registrations as well."

Cox said registrations were at a similar level to the same time before the last games, in November 2020.