By Michael Morrah
Team New Zealand is to get a $36 million taxpayer handout to contest the 2013 America's Cup.
The Government says the contribution was part of an agreement signed by Labour in 2007, and it can't get out of it.
But the decision is angering many people who think that in dire economic times the money could be better spent on helping the less well-off or victims of the Christchurch quake.
Team NZ was out on the water this afternoon testing a scaled-down version of the catamaran it will sail in the 2013 America's Cup. This one's only 45 feet – the real ones will be 72 feet, and in New Zealand's case built with the $36 million payout from the Government.
"Emirates Team NZ is the arrowhead of a $1.7 billion dollar industry," says Grant Dalton. "When we do well, the industry does well. And the kicker is if we get it back, and that's a big kicker."
That kicker is of course, the America's Cup.
But as Team NZ practises out on the water, the Government is only weeks away from what it's warning will be a tough, cost-cutting budget – essential to avoid economic calamity.
"Im astonished," says art historian Hamish Keith. "I understand the commitment was made by the Labour Government, but that was at a time when we hadn't had an earthquake."
The Canterbury earthquakes left the Government with a $9.2 billion dollar deficit, and there are predictions that will rise significantly.
Mr Keith says it doesn't make sense.
"The idea that investment in one-off sporting events is what I call voodoo economics," he says. "It never works out that way and almost always ends in tears."
Those in Christchurch still recovering had mixed views on the necessity of the investment.
"It does seem like frivolous spending when we've got such heavy stuff going on here in Christchurch," says Scott Percy.
Diane Robertson from the Auckland City Mission says it's important New Zealanders get behind our top sports teams, but we "need to think about what is essential spending and what is discretionary spending".
But the Government says it can't get out of the contract signed by the Labour Government in 2007.
Mr Dalton says he feels for the plight of New Zealanders, and he delayed the announcement because of the quakes here and in Japan.
He is adamant the contribution is about business, not sport. He says it will help develop the industry and benefit the economy – especially if New Zealand wins in 2013.
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