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Source: ONE News -
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SkyCity is set to build a $350 million convention centre that will boost Auckland's economy, but in return wants the Government to make changes to gambling laws.
The Government is in negotiations with SkyCity to build the large international centre in the heart of Auckland's CBD.
Development Minister David Carter joined Prime Minister John Key, Auckland Mayor Len Brown and SkyCity chief executive Nigel Morrison to announce plans today.
Key said the project would boost tourism, create jobs and put New Zealand on the map as a business events destination.
However, in agreeing to pay the full construction cost of the centre - estimated at $350 million - SkyCity has asked the Government to consider some alterations to gambling regulations and legislation.
The casino wants the Government to increase its capped number of gaming tables and machines, and extend its licence beyond 2021.
"To ensure SkyCity shareholders, 95% of whom reside in New Zealand, achieve an overall acceptable return on this substantial investment," said Morrison.
Key said an international-sized convention centre is essential for New Zealand to tap into the growing market of high-value business visitors that we are currently missing out on.
He said the tourism industry and business sector have been calling for an international-sized centre for years.
It is estimated that the new centre will provide a $90 million boost to the economy through new spending by additional international visitors.
Around 1000 people are expected to be employed in the centre's construction, and 800 will be directly employed by SkyCity to work in it once it's completed in January 2015.
"You've got to see beyond what will be potentially be a few more gaming machines. This will be an international facility," said Key.
But those fighting problem gambling don't agree.
"We have more than enough machines, we have more than enough pokie games. If we do that, actually we're standing backward, not going forward," said John Wong from the Problem Gambling Foundation.
The Maori Party has also spoken out against the proposal, saying that while it supported new employment opportunities associated with the centre, the party is opposed to gambling as a social hazard.
"Every day we see major downstream effects from problem gambling embedded in our communities - family break-ups, workplace problems, increased pressure on health services and the criminal justice system, and for far too many," said MP Te Ururoa Flavell.
The party will draft a Gambling Amendment Bill towards harm reduction.
New Zealand hosts about 30 major international conventions a year, and the Government said the right facility could get us many more.
Both Carter and Brown welcome the opportunity to boost the Auckland economy.
"Convention delegates are high spenders. On average, they spend more than $650 per night in Auckland, around double the amount spent by visitors on average," said Brown.
The 3500-seat proposed centre between Hobson and Nelson Streets is seen as the best option.
Carter said SkyCity's proposal is favoured because it offers the best benefit to taxpayers, and the company has a good track record in the convention business.
The Government said it has ruled out some areas out of the discussion, such as reducing the age of entry to casinos, allowing SkyCity an internet gambling licence or additional casino licences.
"We've been quite up-front today, making sure that people understand there's a trade-off here, but it's a trade-off we're quite comfortable with," said Key.
Key adds that any changes to gambling regulations will be subject to a full public submission process.
