Spin, parties, gifts add to Cup bill

By BERNARD ORSMAN

A public relations consultant, parties and gifts are adding to a ballooning America's Cup bill for Auckland City ratepayers.

Councillors last night made the fourth contribution in as many months when they voted to spend $370,500 to put a positive spin on the glamour yachting event and entertain millionaires.

The vote takes the city's cup contribution to nearly $1.4 million.

The willingness of Mayor John Banks and his allies to spend ratepayers' money on the cup comes in a year when they have raised pensioner rents, moved to sell pensioner and general houses and hit the poorest households with hefty increases in rates.

Mr Banks said yesterday afternoon that he was not convinced the council needed any more "flash communication consultants".

He was referring to David Verschaffelt, the PR consultant hired by the council for the Volvo Ocean Race at a cost of $79,765 and later jailed on drug charges.

Three hours later, Mr Banks voted to hire a PR consultant.

"This is an economic opportunity that will bring benefits to every ratepayer, every Aucklander in some form," he told the Herald.

"We want to make sure this Louis Vuitton regatta and the cup defence are the very best the city can offer."

A study of the last America's Cup showed economic benefits of $473 million to Auckland.

City Vision councillor Richard Northey failed at last night's council meeting to cut $100,000 from the $370,500 budget, saying the council did not need to hire a PR consultant and, using the jargon of council officers, "hold selective functions for high-net-worth individuals".

The spending coincided with the council switching off funding for the annual Onehunga Christmas tree-lighting ceremony, he said.

Several Auckland Citizens & Ratepayers Now councillors spoke about the benefits that would flow from the last-minute financial package for the cup.

Finance committee chairman Douglas Armstrong called the spending "a drop in the bucket".

The $370,500 includes $100,000 for communications, $115,000 for council work on the cup, $85,000 for civic functions and gifts, $50,000 for economic analysis, and restoration of $20,000 cut at the time of the annual budget for the farewell event.

The communications budget provides $40,000 for a PR consultant, improving the cup website and street banners.

The council has already given $240,000 for the opening and farewell ceremonies, $120,000 to Competitive Auckland to lure foreign investment arising from the cup, and $650,000 to Team New Zealand.