Government's America's Cup support:

**denill** · 9th July 2007, 10:52

Originally Posted by ManDownUnder

Problem is you can't opt out of the benefits too.... they're too hard to quantify.

Eg - a boatbuilder gets more wore from the cup coming to NZ (as it previously has).. they get more money, they take on more staff, and those staff now have more money too. They come to you and buy your goods 9or use your services) and now you have more money too... the trickle down is working, but you have no way of knowing exactly how much better off you are.

So as I have written before and of course been ignored: Do you reckon we subsidise Farmers, Winemakers, et al exporters. Nah, it is about politics (votes).

**ManDownUnder** · 9th July 2007, 10:55

Originally Posted by denill

So as I have written before and of course been ignored: Do you reckon we subsidise Farmers, Winemakers, et al exporters. Nah, it is about politics (votes).

If the expected return is greater than the investment, yes.

Problem is we also have a number of international trade agreements that prevent tarrifs being put on competitive products or subsidies being aplpies to local products, and opting out of those trade agreements would cost NZ more than being in them (all things considered).

So that answer is yes - but we can't because of the greater good of the country's economy (again - I refer back to the trickledown, but swap in famers, vintners etc instead of boatbuilders)

**Kickaha** · 9th July 2007, 18:41

Originally Posted by ManDownUnder

Previously answered in this thread.

Also - let's look at it like this.... $10m spent on the America's cup... that's $2.50/New Zealander.

Let's assume it's a total nett loss... you're bitching and moaning about $2.50?

$10m was the starting figure with perhaps another $24m to be tossed in

I'd be willing to bet that you wouldn't get every NZer to put in $2.50 if you asked them to fund a boat race

Wonder how many operations that would fund in the public health sector
and how much shorter it'd get the waiting lists?, never mind I'm sure the benefits we'll get from loosing the Americas cup will more than compensate

**ManDownUnder** · 10th July 2007, 10:18

Originally Posted by Kickaha

never mind I'm sure the benefits we'll get from loosing the Americas cup will more than compensate

Not sure if you meant to do this but... I agree... I'm willing to bet coming 2nd had a spinoff also -albeit considerably less profitable than winning the thing..

Whether it breaks even is debatable but the loss will be minimised by the boost to the associated industries.

Out of curiousity... how much of the $10m (or $24m... whatever that overall total is) will be injected directly back into the NZ economy anyway? Training... some is done here, boat building - done here... etc.

I bet 1/3 of it is effectively the Govt "releasing cash" straight back into NZ anyway