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Speaker 1: Hospitality in z and Chris Hipkins of the Labour Party

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Speaker 1: seem to be the only people in the country tonight

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Speaker 1: who have said that the America's Cup it's a bad

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Speaker 1: thing that we're not funding this to the tune of

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Speaker 1: seventy five million dollars hospitalities. Steve Armatage spoke to me earlier.

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Speaker 2: I don't think it's reasonable to say that this is

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Speaker 2: money that just goes into a black hole. Actually the

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Speaker 2: event can help to bolster government coffers through GST revenue

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Speaker 2: from the teams being here and established over a period

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Speaker 2: of time, investment and technology, both building componentry, even before

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Speaker 2: you get to the visitation. So in my view, this

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Speaker 2: is one of those instances where you're actually making an

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Speaker 2: investment to unlock the greater return over time.

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Speaker 1: If you believe it. Barcelona earned two billion dollars. Apparently

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Speaker 1: that was the net benefit to Barcelona. But then why

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Speaker 1: aren't there other countries lining up, other port cities lining

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Speaker 1: up to take the America's Cup. Brad Olsen is the

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Speaker 1: Informtric chief economist. He's with us tonight. Hey Brad, good evening,

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Speaker 1: what's your take.

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Speaker 3: I completely back the government's decision not to commit seventy

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Speaker 3: five million dollars to this. I understand that some people,

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Speaker 3: you know, think that it will bring in an economic

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Speaker 3: benefit in similar but let's be real. When the fiscals

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Speaker 3: are in the position they are, when New Zealand is

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Speaker 3: running deficits out until potentially twenty thirty, all those small

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Speaker 3: bits matter, and I think you know, we would have

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Speaker 3: had to be quite upfront that government spending on something

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Speaker 3: like this would be reckless. I mean, you look at

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Speaker 3: the last time New Zealand hosted the America's Cup. The

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Speaker 3: analysis then showed that we made one hundred and fifty

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Speaker 3: six million dollar loss. Why would we do that again

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Speaker 3: knowing that we made a.

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Speaker 1: Loss last time? But that was they argue COVID, so

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Speaker 1: no one could come.

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Speaker 3: I'm sure. But at the same time, I mean, if

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Speaker 3: the one bit of analysis that you have that shows

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Speaker 3: that it's a challenging time that you can't get it through,

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Speaker 3: that's one part. You couple that with the fact that

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Speaker 3: again we just don't have extra money to be spending

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Speaker 3: on what is a private event. By all means, try

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Speaker 3: and bring it to New Zealand. But if people think

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Speaker 3: it's that good of an investment, it's going to bring

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Speaker 3: that much money. They should stump up their own cash.

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Speaker 3: The private sector should be putting it forward themselves, but

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Speaker 3: the government cannot should not be funding everything. We just

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Speaker 3: don't have the resource.

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Speaker 1: Yeah, and there are benefits, I mean I was saying earlier,

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Speaker 1: look at the surgeries they've been able to fund with

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Speaker 1: the potentially saved money from the America's Cup. There are benefits.

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Speaker 1: Presumably cost benefit analyses analyzes. You could show up the

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Speaker 1: wazoo that would show that's actually good for the economy too.

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Speaker 3: Indeed, and this is all what comes down to what

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Speaker 3: economists refer to as an opportunity cost Like it's not

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Speaker 3: like that seventy five million dollars is not going to

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Speaker 3: be spent at all, It's going to be spent on

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Speaker 3: something different. And so part of that is weighing up

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Speaker 3: where do you get most bang for buck? And I

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Speaker 3: think that rightfully the government has gone through their finances,

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Speaker 3: gone through all of the different asks because everyone's always

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Speaker 3: going to the beehive and asking for more money, and said,

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Speaker 3: look at the moment, we've got to prioritize and a

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Speaker 3: yacht race is not currently near the top of the

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Speaker 3: request list.

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Speaker 1: Brad Olson Informetric Chief Economists. Great to have your views.

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