America’s Cup

John Hartevelt at Stuff reports:

The Government took legal advice on breaking its contract to put $36 million towards Team New Zealand’s 2013 America’s Cup campaign.

Acting Economic Development Minister David Carter confirmed the funding on Thursday, which he said promised “the potential to generate significant economic benefits” for the country.

Mr Carter said the Government expected “maximum benefit” from the “significant investment” of taxpayer money in the event.

The Government was contractually obliged to produce the funding because of an agreement signed by the previous Labour-led Government. Legal advice sought by the ministry said the Crown had to honour the agreement.

“If the Crown terminated without cause, the Crown’s liability would be potentially for the full amount outstanding under the agreement, together with damages and costs, if those were sought under court action by Team New Zealand,” Mr Carter said.

Why the hell did Labour sign a contract that guaranteed funding for future bids?

I’m very over the America’s Cup. I loved it when we first challenged, and also when we won it and defended it. But now it is just a competition about who can hire the best Kiwis to win it for various foreigners.

Hopefully the contract Labour signs only forces us to fund the 2013 challenge, and no more after that.