Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Reports show benefits of America’s Cup to NZ

Hon Steven Joyce

Minister for Economic Development

27 March 2014 Media Statement
Reports show benefits of America’s Cup to NZ

The 34th America’s Cup Regatta in San Francisco delivered a range of direct and indirect benefits for the New Zealand economy, according to two evaluation reports released today.

Economic Development Minister Steven Joyce today released both an independent evaluation of the Government’s investment in Emirates Team New Zealand and an evaluation of New Zealand Trade and Enterprise’s (NZTE) leveraging programme in San Francisco.

“The economic benefit from our investment in Team New Zealand is considerable. From a $36 million taxpayer investment, the evaluation shows an estimated positive impact of $87 million to the New Zealand economy,” Mr Joyce says.

Team New Zealand obtained 66 per cent ($118.3 million) of their total revenue of $179.8 million from international sources. Team New Zealand needed to source at least $2 for every $1 of Government support and exceeded that with $3.68 secured for every $1.

In total $153 million or 85 per cent of the total campaign budget was spent in

New Zealand.

“One of the key benefits of the America’s cup challenge was the lift it provided to New Zealand’s profile, particularly in North America over the period of the regatta,” Mr Joyce says.

“With New Zealand continually in the international media over the 55 days of racing, figures show that the tourism, education and construction sectors, as well as the marine sector also felt the positive impact of government investment.

“The reports show that New Zealand agencies successfully leveraged participation in the races to improve international awareness of New Zealand as an innovative place to do business. The recreational marine industry also enhanced its ability to attract and retain highly skilled and professional workers, wanting to be involved New Zealand’s campaign.”

The 212 companies that participated in the NZTE’s America’s Cup business leveraging programme also reported a range of benefits.

“New Zealand design, manufacturing, and technology were on display both on and off the water, and told a compelling story about who we are and what we can deliver. The audience reach of media coverage about New Zealand business was measured up to 86 million,” Mr Joyce says.

“Activity during the Cup has contributed to trade and investment deals so far worth $200 million for New Zealand and a further $120 million of new sales opportunities and investor interest.”

Following the regatta, the Government committed to an interim investment of $5 million to retain key team members for the next challenge. A decision on any further government investment will be made following the delivery of a business case by Team New Zealand to the Government.

“One of the things I have made clear to team representatives is that the Government must have confidence that a strengthened governance structure has been put in place before it will consider a further investment of taxpayers’ money in another challenge,” Mr Joyce says.

“I look forward to having the opportunity to evaluate progress in that regard.”


For more information on the America’s Cup evaluation report and NZTE’s leveraging programme evaluation visit:

http://www.med.govt.nz/majorevents/news/americas-cup-evaluation-reports

ENDS

Questions and Answers

1. How much Government funding was invested in Team New Zealand for the 2013 America’s Cup?

In May 2008, Emirates Team New Zealand (TNZ) and the New Zealand Government formed a Strategic Partnership Agreement, which required TNZ to raise at least $2 for every $1 of Government funding (capped at $36m), provided TNZ lodged a competitive challenge for the 34th America’s Cup.

2. What proportion of Team New Zealand income came from Government investment?

In total, TNZ raised $179.8 million. Government’s investment accounted for approximately 20 per cent of this.

The largest total source of funding came from overseas. This equated to $118 million or 66 per cent of the total income.

3. What was the total value added to the New Zealand economy by Team New Zealand?

Total value added to the New Zealand economy by Team New Zealand (EIA): $87 million.

Total value added by Team New Zealand and Luna Rossa combined (EIA): $106 million.

4. What was the additional employment generated by Team New Zealand?

Additional employment contributed by TNZ: 1,220.

Additional employment contributed by TNZ and Luna Rossa combined: 1,480.

5. What was the tax revenue generated by Team New Zealand?

Total tax revenue from TNZ: $38 – 40 million.

Total tax revenue from TNZ and Luna Rossa combined: $56 – 58 million.

6. Would these benefits have been achieved without Government’s investment?

The evaluation concludes that the positive economic benefits would not have occurred in New Zealand without the strategic partnership agreement between the Government and TNZ.

7. What was the purpose of NZTE’s business leveraging programme?

The programme was designed to successfully leverage New Zealand’s business, technology, food, wine, marine, aviation and tourism ties to the United States, and has helped forge meaningful business relationships for New Zealand companies.

During the programme, New Zealand companies and sectors hosted current and prospective clients, including a number of VIPs and High Net Worth Individuals, as part of deepening existing relationships and laying the foundation for future partnerships.

8. How much did NZTE invest in its leveraging programme around the America’s Cup?

The Government approved NZTE investing $3.9 million to support the America’s Cup Leveraging programme.

9. What were the results of the business leveraging programme?

Activity during the Cup has contributed to trade and investment deals worth $200 million for New Zealand and a further $120 million of new sales opportunities and investor interest.

10. What steps have been taken to ensure the independent nature of the evaluation of the strategic partnership agreement between Team New Zealand the Government?

Following a robust procurement process, Market Economics was appointed as the independent evaluator. They are a New Zealand research firm based in Auckland. Their work was peer reviewed by NZIER.

11. What investment has Government committed to Team New Zealand for the next America’s Cup?

Government has agreed to an interim investment of $5 million.

12. What is the purpose of this investment?

The interim investment will be used to retain key team members until a decision has been confirmed regarding TNZ involvement in the 35th America’s Cup.

13. Will Government invest further if Team New Zealand decides to enter the 35th America’s Cup?

A decision will be made following the receipt of a business case from Team New Zealand, along with the details of the 35th America’s Cup protocol.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Team Behind Trump's Throne

Forget the Putin factor. Daily, the team of charlatans, bigots and stunningly ignorant crackpots that Trump is appointing to head key federal agencies is just as alarming. These are positions with vast power and budgetary discretion over policies that stand to affect tens of millions of vulnerable Americans. Sad! More>>

 

Gordon Campbell: On Bill English, Abroad

If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common. Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues... More>>

ALSO:

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news