3 Jul 2017

Govt to give $5m to Team New Zealand

5:17 pm on 3 July 2017

Team New Zealand will receive a $5 million investment from the government to help keep key staff as they work towards defending the America's Cup at the next regatta.

Team NZ is bringing the Auld Mug home after 14 years away with a 7-1 win over Oracle Team USA in Bermuda.

Team New Zealand celebrates their win in Bermuda. Photo: Twitter / @EmiratesTeamNZ

Prime Minister Bill English said the money would go towards protecting the valuable intellectual property, experience and skills that rest with the team.

He said discussions about how much more money the government would put into the event would continue in the run up to 2021.

"The America's Cup is one of these large events that the government would normally work to support in any case ... that's a separate set of considerations from any further government grant to the team.

"There is likely to be quite a lot of work around the facilities and infrastructure that would be needed for a cup defence.

"As we get into the discussions... the issue of whether the government contributes financially is really just one of the issues, and probably the most straightforward in that you either do it or you don't."

Mr English said it was yet to be seen whether the government would have any say on where the regatta is held.

"With these kind of arrangement there is the issue of deciding how involved to get in it, now they'll have their own set of commercial arrangements, we all have an interest in success of the whole thing, so that will be discussed as we get further down the road."

Mr English said Auckland would also be hosting Asia-Pacfic Economic Cooperation meeting that year, which would bring a whole set of demands and complications with it as well.

Economic Development Minister Simon Bridges said there was potential to generate significant economic benefits if the next America's Cup regatta did end up being held in New Zealand.

"The America's Cup regattas hosted in New Zealand in 2000 and 2003 had a significant impact on the New Zealand economy generating around half a billion dollars of total value added per regatta, particularly in the marine and tourism sectors."

Mr Bridges said New Zealand Trade and Enterprise held a business leverage programme at the 2013 America's Cup in San Francisco, which generate trade and investment deals for New Zealand worth $200m.

Get the new RNZ app

for ad-free news and current affairs