The Government and Auckland Council have agreed in principle to keep the Cloud on Queens Wharf, but who will manage it is up in the air.

The $9.8 million Cloud was built by the Government for last year's Rugby World Cup, when it hosted fans, international media, VIPs and showcased New Zealand food, wine and industry.

Since the Cup, the prefabricated steel, glass and semi-transparent PVC-covered structure has held 29 events totalling 40,000 people.

Yesterday, Auckland chief executive Doug McKay said the council had indicated to the Government that it would like to keep the Cloud on Queens Wharf alongside an $18.6 million refit of the century-old Shed 10 into a cruise ship terminal.


Mr McKay said after talks with the Government, officers would present a business case to councillors.

He has asked Waterfront Auckland to manage the Cloud even though another council body, Regional Facilities Auckland, is responsible for running entertainment venues.

Regional Facilities runs the $32 million Viaduct Event Centre on the waterfront, but has nothing to do with the Cloud and Shed 10.

Mr McKay said Waterfront Auckland had responsibility for Queens Wharf - including the construction of the cruise ship terminals - and he did not want to be dealing with two council bodies.

But once the cruise ship terminal was completed in 18 months, Mr McKay said, the Cloud could transfer to Regional Facilities or Auckland Tourism, Events and Economic Development, the council body responsible for attracting and funding major events.

The possibility of council bodies going head-to-head for business on the waterfront is at odds with plans to co-ordinate the city's under-used and financially shaky stadiums.

Last month, Regional Facilities announced plans to put Eden Park, North Harbour Stadium and Mt Smart Stadium on a more sustainable financial footing under a single management and governance structure.

Waterfront Auckland chairman Bob Harvey was delighted at the prospect of keeping and running the Cloud on Queens Wharf, saying forward bookings looked excellent.

Asked if the Cloud would be a better fit for Regional Facilities, he said: "I'm calling the shots here. We have the skills with Ateed. We know what needs to be done."