Sporting and tourism groups are fuming over the government's pledge of nearly $34 million to Team New Zealand for another attempt to win the America's Cup.
America's Cup Minister Trevor Mallard says there will be conditions attached to the funding which he describes as a trade and tourism investment.
But the chief executive of the Tourism Industry Association, John Moriarty, says the money would be better spent focusing on marketing the country in its key trading markets of Japan, the UK, the United States and Europe.
Moriarty says it is a waste of taxpayer money and will not necessarily yield economic rewards for tourism in this country.
He says at a time when SARS is having a profound impact on the industry, it is inappropriate to consider something which would have such minor potential for tourism.
Sporting groups have also expressed their concern over the spending but Mallard says the yacht race is different.
"Frankly, coming second in the synchronised swimming in Seoul does not have the same value," said Mallard.
National's sporting spokesman Murray McCully said the government had planned to keep the spending secret until budget day when the rest of the government's spending is announced.
"I'm not surprised that the governments original intention was to hide this away on budget night in the small print at the bottom of the page," said McCully.
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