Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 11 February 2015. Volume:703;Page:1451. Text is incorporated into the Bound Volume.]1.ANDREW LITTLE (Leader of the Opposition)to the Prime Minister: Does he stand by his promise to New Zealanders that “the construction of the new convention centre will not cost taxpayers or ratepayers a cent”; if not why not?Rt Hon JOHN KEY (Prime Minister):I stand by my statement in relation to a $402 million convention centre as agreed on 5 July 2013. Following the completion of preliminary design work by Skycity which includes enhancements to previous designs Skycity notified us that the cost of the centre would be higher than the agreed $402 million. The Government is now negotiating with Skycity on a range of options which include holding them to the original agreement of a $402 million convention centre.Andrew Little: Why did he promise New Zealanders a free convention centre when he knew that clause 11.47 of the Skycity deal says “either party may pay the other cash” if construction costs change?Rt Hon JOHN KEY: The contract has been in the public domain for a very long period of time and anyone can read that. The Government’s preferred position is that Skycity completes a convention centre for $402 million. The contract has always been there and the parties are free to walk away from it if they want to.Andrew Little: Why is he talking about giving Skycity more money when his own finance Minister told a select committee today that he would rather walk away from the deal?Rt Hon JOHN KEY: What we have confirmed is what we know which is that there is an agreement to build a convention centre for $402 million and that is the Government’s preferred position. What we also know is that on 19 December 2014 Skycity lodged its resource consent application and it indicated at the time that the construction costs were larger than what it had thought—$470 million to $530 million. Skycity clearly indicated there is a hole. The Government’s preferred position is that Skycity builds it for $402 million.Andrew Little: Whose advice will he take on this issue: Bill English who is trying to save the Budget or Steven Joyce who is trying to save his backside?Rt Hon JOHN KEY: I do not like to choose between the children so I will probably take both their advice.Andrew Little: In light of the huge benefits to Skycity from this deal including a 28-year exclusive licence extension and 230 more pokies why has he failed to keep his promise to New Zealanders for a free convention centre that is not an eyesore?Rt Hon JOHN KEY: We have not failed to keep our promise. In fact actually the member seems to be making the point that we have been making for a very long period of time which is that the preference of the Government is to build a convention centre that actually has no cost from the Crown. Interestingly enough even though Labour members publicly come and say that in this House that does not stop them going off to their box for entertainment or quietly behind the bike sheds telling them they support it.Andrew Little: Why will he not be straight with New Zealanders for once and just admit that the deal has blown up in his face?Rt Hon JOHN KEY: The member is getting a little tiring with those sorts of things. The reality is that the Government’s preferred option is that a $402 million convention centre is built. The Government’s preference is that there is no Crown money to be put in. Skycity has indicated that it would prefer to build a convention centre that is a bit bigger with slightly different designs and it is claiming that there are escalating costs that are slightly higher during the time it has taken place. The Government therefore is having those discussions but at the core of the whole argument the question that has to be asked is whether New Zealand is better if it has an international convention centre in Auckland. In my view the answer to that is yes.Andrew Little: In light of that answer will he rule out giving more money to Skycity for its convention centre?Rt Hon JOHN KEY: I am not going to conduct negotiations for the convention centre here in the House but what I can say is that the Government’s preferred position is that Skycity pay for the convention centre at $402 million. But we will see how that goes and assuming that we get there at $402 million I will look forward to the Labour Party supporting the deal.