Convention centre essential
It’s clear from local body election debates that there are varying degrees of understanding of just how important the Convention Centre is to Wellington, why the Chamber of Commerce backs it, and who’s paying for it. Aside from the fact there’s nowhere in the city to hold a proper conference of more than 300 people, the convention and exhibition/event business itself is a big part of the region’s economy. It drives expenditure of more than $240 million a year and supports jobs across hospitality, retail, transport, education and services. Visitors to these events contribute to the vibrancy of the CBD.
But to remain competitive and relevant in the events sector, Wellington needs a state-of-the-art venue. If we aren’t in the picture, the impact of lost business once the Auckland and Christchurch convention centres begin attracting new overseas business will be significant.
How will it be paid for?
One of the aspects frequently misunderstood is that it will be paid fully by residential ratepayers – but that’s not the case.
The centre is expected to cost $179m, including the land. This will be funded initially by city council borrowings, with servicing and other operational costs funded over time by ratepayers. Overall, some 66.7 per cent of those costs will fall to commercial ratepayers, with the remainder on residential ratepayers.
Business is happy to pay the lion’s share because we see the benefits the centre will bring. But the issue of funding raises an interesting issue – that of central government’s contribution.
As it stands, the Government is yet to finalise what, if any, contribution it will make. The proposal was for it to contribute $25m, and though that sounds like a lot, it pales into insignificance when compared to what the Auckland and Christchurch projects are getting.
In Auckland, though no money will change hands, SkyCity gets gambling concessions worth about $527m over 35 years. That’s for an estimated build of $703m. Basically, by paying for it itself, SkyCity is allowed 230 new gaming machines, extra gaming tables, and to have its exclusive gambling licence extended from 2021 to 2048.
As for Christchurch, its centre is fully funded by central government as part of the city rebuild – price tag $475m (as at 2017).
So how does Wellington’s centre not qualify for central government backing? Since the city is excluded from the Provincial Growth Partnership Fund (arguably, our wider region is also excluded, which doesn’t quite make sense), we believe there’s a great case for the Government to take a good look at supporting the centre, because it seems to tick all the boxes.
It will add significant economic benefit, during construction ($76.3m GDP and 864 jobs) and then on an ongoing basis. When it’s operational it’s estimated to contribute $44.8m in GDP every year, including via 554 jobs.
This will be the biggest infrastructure investment in the city since Westpac Stadium two decades ago. Without the stadium, Wellington would not be able to host large-scale events, and I expect a convention centre would have the same impact.
The chamber is confident the council, after overcoming setbacks over the past few years, is on track to deliver a facility that will compete domestically and internationally for a fraction of the cost of the Crown-funded investments in Christchurch and Auckland.
Designers have done a great job maximising the site design, ensuring it can host activity and attractions all day and all year around, not just at peak convention times. The exhibition gallery on the ground floor will add a public visitor attraction dimension and ensure the building is always open, regardless of whether a convention is being held.
The centre will help create a new precinct that is a destination in its own right. To remain a visitor destination of choice, Wellington needs this venue and the Government needs to contribute its share.