Key Points:

Team New Zealand's comeback win in the second race of yachting's America's Cup was "simply phenomenal", Prime Minister Helen Clark says.

Miss Clark said she had text messaged her congratulations to Team New Zealand boss Grant Dalton this morning.

"I think last night was an incredibly important psychological boost to the team," she said on TVNZ's Breakfast programme.

"To go one down, with Alinghi's formidable reputation, in the first race, that's tough. To come back like that is simply phenomenal."

Miss Clark said the Government had already received a good return on the $35 million it had paid to support the cup bid.

"We think we've already got our money back. The PAYE -- the tax paid by the team in New Zealand -- the GST plus the branding and advertising New Zealand has had.

"I would think we're doing pretty well out of it."

Miss Clark said Team New Zealand faced a huge challenge to win the cup, but last night's win would have given them belief it was possible.

"It' so fantastic to see them do well last night. It's a long way to go -- they have to win another four races -- but we know we can do it."