Gavin de Malmanche: Ratepayers baulk at Eden Park demand

Dick Hubbard, the Auckland City Mayor, has "refused to rule out making a local contribution [ratepayer] of $100 million or more" towards the upgrade of Eden Park for the Rugby World Cup in 2011.

Other contribution commitments include the Government promising $20 million, and the NZ Rugby Union $10 million. The Eden Park Trust Board is down for $24 million. The report said $266 million would be raised locally.

The chairman of the Eden Park Trust Board Development Committee, Rob Fisher, has been lumbered with the unpopular job of raising $320 million. It appears he is looking to Auckland ratepayers to pay "the lion's share" of the contributions because he believes Auckland and New Zealand will be getting a "world class stadium" and we will all benefit "year-in, year-out."

There is no doubt that Eden Park's South Stand has passed its use-by date. Bearing in mind the park's out-dated trust deed and dichotomy of ownership between cricket and rugby, two different and overlapping sporting codes, the proposal as presented by Fisher seems to fulfil the brief.

The issue is now one of relative cost contribution. It is worth commenting on what benefits Auckland City ratepayers and the country will receive.

Auckland ratepayers may do their maths and find it difficult to quantify the benefits "year-in, year-out." They may find it hard to understand how Fisher relates his claim to some kind of research which said "last year the Lions rugby tour poured $53 million into the regional economy".

Ratepayers will know that 12 years had elapsed before the previous Lions tour to New Zealand in 1993. And they may now ask where is last year's $53 million worth of benefits? The more cynical may suggest the benefits are large rate increases "year-in, year-out".

After the one-off development and construction work leading up to the World Cup - and revenue from an estimated 70,000 international rugby fans - it's back to normal.

It is possible that on the few occasions when Eden Park is full, hotels, motels, bars, restaurants, taxis and shops will gain extra income. If it is an international game, some airlines will sell extra seats. However, for 160,000 Auckland City ratepayers it may be difficult for them to identify additional benefits "year-in, year-out" when 200 or so week-day cricket test fans arrive to fill the extra 12,500 seats costing $320 million which will be available at Eden Park.

As one-day international cricket matches have been regionalised, what benefit increases will they enjoy from two or three of those matches a year?

Based on this year's figures the new facility could be full for only four Super 14 rugby games, two or three tests, and some Air New Zealand Cup/NPC games. (Which, incidentally, are often less than half full.) There will be the cricket matches mentioned above and some meetings, weddings, cocktail parties and miscellaneous events.

But for about 90 per cent of the time there will be $320 million worth of empty seats and $320 million worth of empty field.

Taxpayers could also do their maths. As the Government has committed the country for $20 million, they may justify this investment because it is a national event and the country will benefit. They may also say without Government support New Zealand would never have won the rights and therefore the advantages of free worldwide publicity.

The Government might think that the estimated 3.5 billion or so global television audience for the World Rugby Cup in 2011 will send New Zealand's tourism income through the roof "year-in, year-out".

But some taxpayers may rationalise that the publicity would increase feel good factors for millions of prospective inbound tourists but, as far as delivering bums in seats "year-in, year-out", it could be a different story.

What influences tourism income is more likely to be one of a trilogy of factors. First, world events such as bird flu, SARS, terrorist activities, and wars. Secondly, the state of the economy of a country supplying our tourists. And thirdly, the exchange rate.

Furthermore, during the World Cup they may see any major visitor increases negated by those who would have cancelled their plans to visit New Zealand because of the perceived numbers of rowdy rugby fans jamming hotels, restaurants, bars, tourist sights and activity venues.

There may not be "year-in, year-out" benefits as Fisher, the Rugby Union and the Government suggest. But dwelling on this aspect does not solve the situation.

Auckland needs a better World Cup facility and the powers that be in Wellington have, rightly or wrongly, committed Auckland's long-suffering ratepayers to an expected substantial cash contribution which they can ill afford.

This bizarre situation calls for a solution based on an understanding of the history and an equitable division of contribution commitment.

The Government via the Prime Minister, together with the NZ Rugby Union, signed a conditional contract in London committing the country to upgrade Eden Park. Since both run significant cash surpluses it may make sense those parties should accept the responsibility and double up their promised contributions.

Rather than palming the largest share of the contribution cost onto Auckland ratepayers, the Government should increase its $20 million to $40 million plus and the NZ Rugby Union its miserly contribution of $10 million to $20 million plus.

Eden Park could also up the ante. Ratepayers who were not present at the IRB London meeting could contribute up to $25 million - a saving of $75 million

This will make more sense to ratepayers as it would leave that amount in the council's slush fund for more regularly used facilities such as footpaths, roads, parks, drainage, sewage, swimming pools and libraries, dog microchipping etc.

Ratepayers across all-socio economic groups have had a guts full of cost-plus rate increases. The feeling out there is rebellious. If Auckland City Councillors ignore common sense and vote for an over-the-top contribution for privately owned Eden Park it will be at their peril.

* Gavin de Malmanche is an Auckland ratepayer, an Eden Park ground member and played representative rugby for Auckland in the late 1950s and early 1960s.