America’s Cup: great theatre, poor deal

“The America’s Cup is a fantastic event, but David Parker and Phil Goff have negotiated an incompetent deal on behalf of New Zealanders”, says ACT Leader David Seymour.

“Clearly feeling the pressure, Parker and Goff will stump up at least $212.5 million of taxpayer and ratepayer money, including a $40 million ‘hosting fee’.

"Economists have put the cost-benefit ratio of the event at between 0.997 and 1.14. That means the most optimistic scenario has the country only just breaking even.

"But, with a high likelihood of cost blowouts, New Zealanders could end up losing money on the event.

“No private investor in the world would accept a maximum $1.14 return on the dollar. Why should the taxpayer?

“David Parker and Phil Goff should have pushed Team New Zealand much harder for a better deal for New Zealanders”, says Mr Seymour.

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