Cup costs estimate at $400m

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Hosting the 2011 Rugby World Cup could end up costing New Zealand taxpayers more than $400 million.

A Herald on Sunday investigation has revealed the total public bill for RWC2011 has already reached $507.6m. Economists have cast serious doubt on the event's much-touted economic benefits.

A report for Cup organisers claimed hosting it would boost New Zealand's economy by $506m, but Auckland University professor of economics Tim Hazledine said the report was flawed. He said the gain to tourism and the effect of visitor spending has been overstated.

"There might be a genuine economic benefit of spending by fans of around $100m to $150m - and perhaps I'm being a bit generous."

Rugby World Cup Minister Murray McCully dismissed Hazledine's analysis as pathetic.

"The idea that we should assess the costs of infrastructure that we will enjoy in perpetuity against the direct economic return from a 45-day tournament is ridiculous."

McCully said the benefits of the tournament in the years following would "run into billions of dollars".

But Rugby NZ 2011 chief operations officer Therese Walsh conceded some of the criticism by Hazledine.

"We accept they are simply estimates, and all estimates utilise assumptions and methodology that are never certain."

In Auckland, councils have allocated $95m to Cup spending. Central government's $271m contribution is mostly for stadium upgrades and construction.