21 Oct 2013

$5m for Team NZ to keep key people

8:23 pm on 21 October 2013

The Cabinet has agreed to give Team New Zealand $5 million to help keep key staff on until a decision is made on whether to mount a challenge for the next America's Cup.

The funding will be used to secure team members, including designers, sailors, support crew and administration staff, until May 2014.

Economic Development Minister Steven Joyce says the Government is keen to retain the knowledge and skills of the team for a further challenge, should that prove feasible.

He says the previous Labour Government made a similar investment after the 2007 regatta.

Mr Joyce says the $5 million of interim funding will form part of any final sponsorship arrangement, if the challenge goes ahead.

Any further funding will depend on a strong business case from Team New Zealand and an assessment of the benefits for New Zealand businesses, he says.