Claire Trevett

Claire Trevett is the New Zealand Herald’s deputy political editor.

Cup's $67m boost for NZ: report

The Government got more back in tax than the $36m it gave Team NZ.
The Government got more back in tax than the $36m it gave Team NZ.

Team New Zealand spent $153 million in New Zealand over the last America's Cup campaign and injected a net $117 million into the Auckland economy, creating the equivalent of 1234 jobs, a report says.

An independent report by Market Economics on the economic impact of the Cup also showed the Government raked more back in tax than the $36 million it gave to Team NZ to contest last year's regatta.

And although Oracle won, Team NZ's rivals added an estimated $53 million into the New Zealand economy through its Warkworth-based boatbuilding company.

See the report here:


The report showed Team NZ paid about $24.9 million in tax including GST, paye, ACC and company tax, while overall tax revenue from Team NZ, Oracle and Luna Rossa combined totalled $70 million.

The analysis covered the period from the end of the 32nd America's Cup in 2007 to the end of last year's America's Cup.

It found that overall there was about $67 million net benefit to the economy. Between them, Team NZ, Luna Rossa and Oracle injected about $159 million into the economy between 2007 and 2013 and the equivalent of more than 2000 jobs.

About 85 per cent ($153 million) of Team NZ's campaign spending was in New Zealand, mostly in Auckland. It received a total of $180 million for the San Francisco campaign, including $118.3 million from international sponsors which was 45 per cent higher than the 2007 campaign.

Economic Development Minister Steven Joyce said while the figures were pleasing it would not necessarily help Team NZ secure more funding. He hoped to see another challenge given New Zealand now had a long tradition with the Cup, but reiterated he would expect the syndicate to bolster its governance.

"What they need to do is work out what they're doing and then we'll make an assessment as to whether we think it's something that the Government wants to be involved in and that taxpayers want to support."

The report said the Cup also had spinoffs for New Zealand's brand and tourism, and the media exposure reached an audience of 80 million people. The big benefits were for the marine sector.

A Trade and Enterprise report also looked at the spin-offs for more than 200 businesses which took part in Cup related events. Mr Joyce said there had been trade and investment deals worth $200 million.


See that report here:

- NZ Herald

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