4 July 2007
Media Statement

Congratulations to Alinghi and to Emirates Team New Zealand

Minister for Economic Development and Sport and Recreation Trevor Mallard today congratulated Alinghi on its successful defence of the 32nd America's Cup in Valencia. He also paid tribute to the performance of Emirates Team New Zealand.

"This America's Cup regatta will go down as one of the most closely fought contests in a quarter of a century. We have seen some fantastic racing with two very evenly matched boats and two highly skilled teams. Congratulations to Alinghi for its successful defence of the Auld Mug. While they only had a slight edge, they hammered it home in a truly professional manner. I am immensely proud of the kiwi team which showed great character, strength and determination throughout the Louis Vuitton and America's Cup regattas and the finals," Trevor Mallard said from Valencia.

"While it is disappointing that Emirates Team New Zealand will not be bringing the Cup home, all New Zealanders can be incredibly proud of what our team has achieved at this regatta.

"It was an amazing contrast with the previous regatta when they lost five nil and there was a real chance of the boat sinking.

"The racing was incredibly close, with both teams fighting all the way to the line. Every race has been a real nail-biter which I’m sure has resulted in many sleepless nights throughout the country. The fact that our top New Zealand sailors have been highly visible in syndicates throughout this America's Cup event is also something New Zealand can celebrate, as it reinforces our proud reputation at the top of the sailing world.

"The government's tourism and trade investment in Emirates Team New Zealand has certainly paid off through the America's Cup economic leveraging events in Valencia – all aimed at promoting New Zealand technology, products and services to high value offshore business contacts and international audiences.

"These involved 55 Kiwi companies hosting close to 600 individuals from 160 targeted companies.

"Emirates Team New Zealand has encapsulated exactly what we want to tell the world about our country – our tenacity, our can-do attitude, our fantastic teamwork, our skills in innovation, in high tech and high value areas of manufacturing.

"Those people whom we hosted in Valencia as guests of New Zealand companies and who saw Emirates Team New Zealand in action through the leveraging programme will never forget the experience, and I'm sure our exporters will have made and developed long-term friends and business connections as a result.

"Emirates Team New Zealand had also paid more than $22 million in PAYE as of May this year. That combined with the tax paid by contractors means that the taxpayers cash investment has been repaid in full.

"It is the view of the government that the team should continue, that it should be based in New Zealand and that Auckland should host an America's Cup regatta again. Therefore Cabinet has agreed that in the interim, $10 million should be made available to contract vital team members while negotiations occur around details of commercial sponsorship," Trevor Mallard said.

Contact information and fact sheet about the America's Cup leveraging programme follows.

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America's Cup Leveraging Programme – Key Facts

• The government invested $33.75 million in Emirates Team New Zealand, in recognition of the trade and tourism opportunities that New Zealand could leverage off our participation in the regattas and also the significant opportunities should we bring the America's Cup home and host it again in Auckland.

• Government's investment which happened soon after the 2003 event helped secure key New Zealand sailors for the kiwi challenge.

• The defence of the America’s Cup in 2003 had a very significant impact on the Auckland, and national economies - generating NZ$529 million of value added.

• For this America's Cup and the build-up activity, Tax PAYE paid by the team only has covered about two thirds ($22 million) of the government's investment with PAYE paid by their New Zealand suppliers and contractors making up the balance.

• An independent economic report estimates that the challenge by Emirates Team New Zealand for the 2007 America’s Cup would have injected $85 million into the New Zealand economy over the 2003-07 period, with related employment ranging between 540-830 jobs.

• On top of this are the additional spin-offs to key New Zealand industries that will flow out of the leveraging and networking events that were held at the Emirates Team New Zealand base in Valencia – all aimed at promoting New Zealand technology, products and services to high value offshore business contacts and international audiences.

• Furthermore the international exposure for New Zealand industries through targeted media coverage has been significant.

• The New Zealand leveraging events involved around 55 New Zealand companies, 160 international companies and close to 600 people.

• There has already been feedback that these events and face-to-face networking opportunities are generating concrete returns.

• Sectors and companies that have taken part in leveraging events include marine, ICT, telecommunications, biotech, functional foods, food and beverage, aviation, film, transport and logistics technology, and NZ Investment.

• Information about New Zealand companies involved with Emirates Team New Zealand and the America’s Cup can be found at http://www.marketnewzealand.com/americascup.

ENDS

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