$34 million

I’m not a huge fan of the $34 million the Government has announced for the next America’s Cup, but do recognise there are some economic arguments in its favour.

As to be expected there are critics, which The Press seem to have gone out of their way to collate. And we are told the $34 million could fund 1.5 extra teachers for every secondary school, 253 more police etc.

They are all wrong. The $34 million is a one off grant, not an annual disbursement. Therefore the annual cost is the amount of interest one would pay on extra debt. The Debt Management Office can do large bonds for 6%, so the annual cost is $2.04 million.

That will get you only around 20 teachers or police officers.

Like I say I’m not a huge fan of the decision. I just hate inaccurate criticism.