The $75 million that would have been needed to host the America's Cup in Auckland would be better spent elsewhere, the government says.
Team New Zealand on Tuesday announced Auckland had been rejected as a host after the event failed to get government backing.
Prime Minister Christopher Luxon told reporters at Parliament the government would have needed to stump up "a lot of money" as well as backstop the council - and more funding would have been needed to be raised from private businesses.
"It would be nice to do, genuinely it would be nice to do, but we've inherited a very messy set of economic books and I think most New Zealanders would sit there and go, 'What's the choice, actually upgrading regional provincial hospitals across New Zealand or actually investing in America's Cup?' and it's pretty clear to me that actually New Zealanders want us to invest in proper infrastructure.
"We have a responsibility to be very grown-up and responsible with taxpayers' money."
Finance Minister Nicola Willis said New Zealanders understood there was "no magic money tree" and the government could not pay "huge costs for everything".
"We just judged that at this time those resources are better in our hospitals, our schools and the other pressing needs of New Zealanders."
She pushed back against claims the event would have brought about $2 billion to the Auckland economy.
Emirates Team New Zealand v Luna Rossa Prada Pirelli in Auckland, March 2021. Photo: Photosport / Chris Cameron
"I think that those numbers are questionable... there would have to be a lot of analysis to ascertain whether that was the case, and I'm not sure that I accept that would have been the case."
Minister for Auckland Simeon Brown said it was a decision taken by Tātaki Auckland Unlimited - the city's economic and cultural agency - and the deal would have required a bed tax.
"Obviously we as a government have said we're not supporting it, but we're focused on the key issues that matter to New Zealand which is growing the economy, focusing on law and order, and supporting the key infrastructure that New Zealanders need - which is health, education and roads.
"It would rely on having a bed tax. We're not into just putting new taxes in place, but we're very much focused on the issues that matter to New Zealanders - which is investing in hospitals, roads, infrastructure.
"The whole premise of that case relies on another tax... I'm not the minister responsible for that, all I'm saying is that the premise of the proposal relied on a new tax."
Sports Minister Mark Mitchell similarly said the country would have loved to have hosted the America's Cup at home, but the $75 million asking price was too much.
"I think we're all extremely proud of the cup, its history and what it means to the country, but just the harsh reality of it was it was just too much money, and at the moment we've got other areas that we need to invest $75 million in.
"I'm not arguing any economic case, all I'm saying is that at the moment for us as a country we're doing it tough fiscally and we've got to be disciplined and we've got to be responsible where we invest and where we use taxpayers' money."
But Labour leader Chris Hipkins said he was disappointed the government had not pushed harder for the hosting rights.
"I'm actually disappointed. I think the America's Cup is a great event for New Zealand and it would be a good boost for Auckland right at a time when the major events pipeline's looking a little empty for Auckland.
"The whole country benefits from the America's Cup. The flow-on benefits from that aren't actually just around the event itself but actually having all these teams based in New Zealand, the technology that comes with that, the innovation that comes with that, the opportunities that flow from that... I guess I have some regret that our government didn't just push a little bit harder."
That did not mean it would have led to a different outcome, and he would not have gone into negotiations with a blank cheque either. He acknowledged he did not know where the government's negotiations had got to, but said he wished "we'd had at least one more go at it".
Labour sport spokesperson Cushla Tangaere-Manuel would not say whether Labour would have gone ahead with the deal.
Cushla Tangaere-Manuel. Photo: RNZ / Samuel Rillstone
"That's a question for the government, I mean I don't know what the rationale is for why they've not done that. What we know today is that the tax cuts for landlords are going to kick in, and we're still seeing cuts in every other sector in Aotearoa, including sport.
"It's easy for us to assume what's a nice-to-have, but for people who are involved in that and not only for sportspeople but sponsors, etcetera, and people that are impacted economically, it's not a nice to have.
"We know the popularity of the America's Cup. I mean, it's been referred to as 'New Zealand's Cup' and anything that boosts economy is a good thing."
Labour's Kieran McAnulty took a slightly different tack, sharing a personal anecdote.
"I was a massive fan way back in the day. I went to Valencia when I was on OE to go and support them, and then they moved away from New Zealand - I thought 'nah, bugger them'.
"Look, I think it should be held here - whether there's government investment or not. It's Team New Zealand, not 'Team whoever the sponsor is'.
He said he did not have a view on whether the government should have sponsored it or not, but it should have been held in New Zealand.
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