14 May 2013

Joyce dismisses claim SkyCity deal unconstitutional

10:01 am on 14 May 2013

Economic Development Minister Steven Joyce is dismissing claims that a compensation clause in the Government's deal with SkyCity is unconstitutional.

On Monday it was announced SkyCity will fund and build a $402 million dollar convention centre in Auckland and, in return, will be able to expand its gaming operations in the city.

If the concessions granted under the deal are changed, the compensation clause provides for $11.5 million to be paid for every remaining year of the 35-year contract.

The Green Party says if it is part of a future government it would repeal the deal as it is unconstitutional.

Mr Joyce says if future governments were to chop and change such deals, the whole country would grind to a halt because no company would want to set up any sort of contract with the Government.