No SkyCity assurance on deal – Cunliffe

Crown lawyers say a future government could overturn the Government’s $400 million convention centre deal with SkyCity and legislate away compensation clauses.

A war of words erupted yesterday between National and Labour after Prime Minister John Key claimed Labour had privately offered assurances to SkyCity that it would not overturn the deal.

Labour leader David Cunliffe accused Key of making it up – but would not commit Labour to overturning the deal.

Key made the claim after Parliament’s commerce committee recommended the International Convention Centre bill be passed.

Under the deal, SkyCity will build a $400m convention centre in return for gambling concessions.

The committee reported that it had sought advice on the ability of a future Parliament to repeal the legislation after the deal included provision for compensation should the agreement be overturned by a future government.

In its minority report, Labour MPs said Crown Law had confirmed it would be within the power of a future parliament to legislate to overturn the deal and nullify the compensation provisions.

SkyCity said in a statement it recognised that Parliament was sovereign and could pass any laws it chose, and Crown Law’s advice was not news.

‘‘However, the sanctity of contract law is also vitally important in any first world country such as New Zealand.

‘‘The [convention centre] agreement includes provisions that recognise that SkyCity is prepared to invest over $400m to deliver an international-scale convention centre in Auckland in return for a number of regulatory concessions.

‘‘This investment delivers a vital piece of national tourism infrastructure for New Zealand that will drive tourism and economic growth and create jobs – at no cost to taxpayers or Auckland ratepayers.’’

Key agreed Parliament could not bind a future parliament and ‘‘that’s true of any laws’’.

That was the risk any commercial operator took with its investments.

But he said he did not believe Labour would overturn the deal, despite its its opposition to the gambling concessions granted.

‘‘They won’t go there. Because Labour is already telling SkyCity they won’t.’’

Asked what he based his claim on, Key said that was what he had heard ‘‘around the traps in Auckland’’. ‘‘I won’t divulge my sources.’’ But Cunliffe said there had been no discussions with SkyCity.

‘‘I believe he’s making it up again . . . I have made no such commitment.’’

He refused to elaborate on what Labour would do about the deal should it form the next government, but said it was within the scope of future parliaments to reduce the number of pokie machines.

‘‘When we become the government, we will look carefully at issues of gambling harm, we will take a principled and rational approach.

‘‘To the extent that that contract is inappropriate, it could be subject to a future Parliament.’’