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: Gordon Campbell On The Troubled Aftermath Of Scotland’s Independence Vote

A week can be a very long time in Scotland’s 300 year struggle for independence. The “No” vote last week that seemed to end the cause of Scottish independence for a generation, has turned out to have had an enormous fish hook attached, especially for the British Labour Party. The problem has emerged in the wake of promises made during the desperate scramble to head off the “Yes” vote in the last week of the campaign.

Before getting on to that though, have a look at just how skewed the vote for and against independence was, among different age groups. By and large it was older people who bought the scare messages, and voted “No” while young age groups, with one narrow exception, had voted “Yes”… More>>

 


Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news