Auckland's mayor is defending his support of SkyCity's convention centre, despite backing a sinking lid policy when it come to pokie machines.
The casino operator says it will build a $350 million centre in return for the government easing regulations to allow it to have more pokies in its casino.
Prior to becoming Auckland's mayor, Len Brown had promised to slash the number of gaming machines.
He says at this point in time the project's in the government's hands
“The Government is going into negotiations with SkyCity, to determine the final terms of reference. I don’t know what they are, once they have done that we will have a response ready.”
SkyCity says the centre would bring in about $90 million in additional visitor spending each year.
However, the Greens claim that gambling addicts and their families will effectively pay for the convention centre.
Green MP Kevin Hague is outraged.
“John Key is proposing that people with gambling addictions and their families will foot the bill for this new convention centre. The profits that SkyCity believes it can extract from gamblers are obviously immense.”
Labour and the Maori Party are also opposed to any law changes.
However, the Prime Minister says the deal with Skycity casino makes good economic sense.
He is rejecting criticism of the Government's proposed deal with the casino company.
“People who are addicted to gambling in this country are about 0.04 percent. So if you look these are very low numbers, I am not saying it is not a risk, there is a big levy and money spent on that. But if you compare it to the numbers for damage from alcohol, alcohol is much higher,” says the Prime Minister.
Business commentator Bernard Hickey says the decision to build the complex should stand on its own merits.
“This is giving in to corporate blackmail by a listed company. Surely if this convention centre was profitable in its own right it should stand on its own two feet and not require special favours for the casino.”
The new convention centre will be built on a site close to SkyCity's existing Auckland casino.
RadioLIVE
Is the new Sky City Convention Centre deal against Mayor Len Brown's election pledge? Marcus Lush speaks with Mayor Len Brown about the compromises on gambling that will ensure Sky City build the new convention centre.