Saturday 2 April 2011

The Council's Extra Investment

Auckland Council has agreed to make up an almost $3 million shortfall in funding for its three extra Rugby World Cup games despite protestations from some councillors that the Government should foot the bill. Auckland will now hold an extra two quarterfinals at Eden Park and a pool game at North Harbour Stadium.

Councillor Mike Lee said Auckland ratepayers were "at the bottom of the food chain and they are the losers in this, really". He would have been one of the councillors who had voted against the council fundings. However I tend to prefer Lens's attitute more. Len has indicated that most of the funding will come from cuts to other areas. The mayor also said that Auckland has no other option but to fund the games.

Councillor Calum Penrose said he's opposed to the funding because he thinks the government should pick up the tab. Penrose said Auckland ratepayers have already paid $100 million towards the Rugby World Cup. Meanwhile, there has been a backtrack from the council on plans to cut $14 million in funding for the arts and rescue services.
Personally i think the Council is realistically the only organisation that has the ability to fund the extra three games. It would be unfair expect the central government to provide the funding as the extra revenues associated with the three extra games are only likely to benefit Auckland.

As i have mentioned in my earlier posts, it is most unfortunate that the Christchurch has lost the opportunity to host RWC games, but Auckland can benefit from the decision. Just think of the extra revenue that will likely to be associated with hosting the extra games. Party Central for one is likely to benefit from the extra visitors who will go their and spend after watching the games.

Source:

http://tvnz.co.nz/national-news/auckland-ratepayers-cough-up-extra-matches-4095503
http://www.stuff.co.nz/sport/rugby/rugby-world-cup/4834926/Auckland-Council-approves-extra-RWC-funding

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