Economic Development minister Steven Joyce made the announcement today alongside SkyCity chief executive Nigel Morrison and Auckland Mayor Len Brown at SkyCity.
"An international convention centre in Auckland will be a major asset for New Zealand and will generate significant spin-off benefits including a projected $90 million annual injection into the economy; an estimated 1000 jobs during construction; and 800 jobs once it is up and running," Joyce said.
Asked if it was acceptable for dozens of people to be playing pokies downstairs as Joyce gave the announcement shortly after 8am, he said: "I think you're applying a certain social judgement of your own, which is fine, but the reality is people can responsibly participate in gaming.
"This is a legal activity that people enjoy and, yes, there are some risks for some people but the harm minimisation aspects of this agreement will actually help manage those risks more than we've had to this point, and I'm proud of that."
The minister was confident the economic benefits would outweigh the social risks.
"I think it is important to point out the changes we have made and the changes that SkyCity have agreed to in terms of harm minimisation, pointing out in particular this $500 limit ... which will be the first time there is a requirement for ID above $500.".
Under the agreement, SkyCity would meet the full project costs of the convention centre - estimated at $402 million - in return for the following:
* An extension of SkyCity's Auckland casino licence, due to expire in 2021, to June 30, 2048 and an amendment to cover all SkyCity's properties in Federal Street
* An additional 230 pokie machines on the casino floor
* An additional 40 gaming tables
* A further 12 gaming tables that can be substituted for automated table game player stations (but not pokie machines)
* Up to 17 per cent of pokie machines and automatic table games (in restricted areas only) being able to accept banknotes of denominations greater than $20
* Introducing TITO (ticket-in, ticket-out) and card-based cashless gaming technology on all pokie machines and automatic table games at Auckland casino.
SkyCity will operate the convention centre for at least 35 years. The company made its own announcement to shareholders on the New Zealand Stock Exchange this morning.
SkyCity is contributing the 14,000 square metres Auckland CBD site for the convention centre, which is bounded by Nelson, Hobson and Wellesley streets.
The company said as well as the convention and exhibition space, there will be at least 780 carpark and a new linkway bridge over Hobson St.
As part of the deal, SkyCity has agreed to increased measures to deter problem gambling and money laundering including:
* A predictive modelling tool that analyses data to identify players at risk of problem gambling
* A voluntary pre-commitment system where players can elect to restrict the amount of time they play or the amount they spend
* Doubling the number of "Host Responsibility" specialists to deliver 24-hour, seven-days-a-week coverage.
* Introduction of player identification requirements when amounts over $500 are being put onto, or cashed from, TITO tickets in non-restricted areas.
An independent assessment by financial advisory firm KordaMentha described the value of the concessions made to SkyCity in exchange for the construction and operation of the International Convention Centre as reasonable for both parties.
The 230 new pokie machines is the same number granted to SkyCity under the previous Government in 2001 for the development of the existing, and much smaller, Auckland Convention Centre.
The Government has the final say on the design of the Convention Centre, which will be designed and built to contemporary international standards.
"This agreement to build a world-class convention centre is a good deal for New Zealand that will create jobs, boost tourism, and bring significant benefits both to Auckland and to the New Zealand economy," Joyce said.
"For years the tourism industry and business sector have been asking for an international-sized convention centre to be built in New Zealand to ensure we compete with Australia and Asia by tapping into the growing marke
