Prebble Richard: Questions for Oral Answer — Questions to Ministers 
Prebble Richard: Questions for Oral Answer — Questions to Ministers 
[Volume:608;Page:5595] 
2.  
Hon RICHARD PREBBLE (Leader—ACT NZ) 
 to the  
Minister for the America's Cup 
: What justification can he give New Zealand taxpayers for the decision to subsidise Team New Zealand’s next America’s Cup challenge? 
Hon TREVOR MALLARD (Minister for the America's Cup) 
: 
 I remind the House that the support is subject to a range of conditions being met and is in the order of the amount suggested by the National Party. The support is likely to be approximately fiscally neutral to provide trade tourism and employment benefits and to provide a chance of returning an event worth over $600 million to New Zealand. 
Hon Richard Prebble 
: How does the Minister justify spending up to $33 million on the America’s Cup which is a rich man’s sport by increasing the tax on sherry which is the pensioner’s pleasure; what sort of Labour Government is this? 
Hon TREVOR MALLARD 
: I remind the member that the budget for a challenge is likely to be in the range of $120 to $150 million. With tax from resident sailors in New Zealand GST and boats being built here it is very likely we will get all the money back in tax. 
David Cunliffe 
: What conditions would have to be met in order for Team New Zealand to receive any Government funding? 
Hon TREVOR MALLARD 
: Team New Zealand would have to decide to mount a challenge and raise substantial funding from the private sector. Those two things are obviously linked. The assessment would have to show trade tourism and economic benefits to this country in relation to the net cost to the taxpayer. 
John Key 
: Why does the Minister think that the Government should spend seven times more on a challenge based in the Northern Hemisphere than it did on the defence when that was in our own backyard here in New Zealand? 
Hon TREVOR MALLARD 
: If the briefing notes left for me by the former Minister were more adequate it could well have been logical at the time to have spent more and to have retained those sailors. 
Hon Peter Dunne 
: Aside from support for previous America’s Cup campaigns what precedent exists for this type of support being advanced for an America’s Cup challenge and how does the Minister answer accusations from other sports that they are being discriminated against by this particular form of support? 
Hon TREVOR MALLARD 
: If there are other sports that are likely to or can bring forward something that is fiscally neutral and likely to lead to more than $600 million worth of economic activity the Government will contemplate their suggestions. 
Mike Ward 
: Does the Minister not think that investing the $34 million proposed for the next America’s Cup campaign towards changing young people’s eating and exercise habits and thus prevent the $1 billion blowout in type 2 diabetes might not make a better investment; if not why not? 
Hon TREVOR MALLARD 
: I think the member should wait until Thursday. 
Hon Richard Prebble 
: In clarification of the last two questions from the Green Party and United Future can the Government as it is a minority Government give us an assurance that it has a parliamentary majority to spend $33 million on an America’s Cup campaign? 
Hon TREVOR MALLARD 
: It is important to note that the Government is not suggesting appropriating that at this time because no decision has been made to spend it.