Gamble on Skycity imperative for growth– Joyce

Minister says Treasury’s stance is ‘too conservative’, reports Tracy Watkins. SkyCity is promising an extra 1800 jobs from its $402 million convention centre after an 11th-hour deal signed off with the Government.

The Government and the casino operator are touting spin-offs from the centre, which they say has already attracted more than 50 inquiries from major convention bookers and exhibitions attracting 90,000 potential delegates.

With those inquiries dependent on an opening by September 2017, the Government is not ruling out a fast-track consent process for the centre, as a project of national significance.

Economic Development Minister Steven Joyce confirmed that had been ‘‘floated’’ as one option to keep to the 2017 deadline.

‘‘It’s been floated that might be a path it goes down because it is national infrastructure. At this point . . . that’s something to get discussed between the parties before that’s lodged.’’

As part of the deal, the Government is spending $34 million over four years attracting international business events, including conferences, conventions and exhibitions.

But just-released Treasury papers ‘‘We need it to be able to compete against the Melbournes and Sydneys of the world for this sort of business activity.’’ showed officials were not convinced about the merits of that spending.

Treasury warned that it was difficult to determine the value of such spending.

But Mr Joyce said the Government’s view was that Treasury was ‘‘too conservative’’ on such issues.

‘‘They seem to discount the fact that as a small open country we need to leverage ourselves into a range of things that link us well internationally and this . . . convention centre is only one example of how we effectively have to punch almost above our weight.

‘‘We need it to be able to compete against the Melbournes and Sydneys of the world for this sort of business activity.’’

The deal was signed late Friday night, just hours before an 11pm deadline.

SkyCity entertainment group chief executive Nigel Morrison said the threeyear construction project would create 1000 construction jobs and the convention centre would employ an extra 800 workers once it was up and running.

The complex will host up to 3500 delegates. SkyCity has bought up Television New Zealand land to expand.

But the project is controversial after the Government granted SkyCity a 35-year extension of its casino licence, an additional 230 pokie machines, an extra 40 gaming tables and cashless card-based gaming.

Under the deal up to 359 gaming machines will also be allowed to accept bank notes up to $100, and SkyCity’s casino licence has been extended to encompass all its properties on Federal St.

The Government has also agreed to compensate SkyCity for any increase in casino duty or any other tax applying only to casinos until seven years after it enters into a binding construction agreement.

It has also agreed to compensation of up to $402 million if any future government changes or removes the gambling concessions agreed to under the deal.

The deal still needs Overseas Investment Act approval and it is also subject to legislation passing through Parliament.

SkyCity can pull out before building starts, meanwhile, if events that might have a material adverse effect on SkyCity lead it to the conclusion that venture would not be financially prudent.