Bets are off Sky City’s stupid gamble

Sky City did a deal with the Government. They got gambling concessions in return for the promise of a convention centre in Auckland.

Now Sky say their cost estimates have gone up and they need financial assistance.

But Len Brown says the Auckland City Council won’t fork out – Ratepayer cash won’t go into convention centre, mayor promises.

Auckland mayor Len Brown says the council will not put any ratepayer cash into building or running an international convention centre.

He told the Weekend Herald yesterday that there would be no money for the SkyCity convention centre in a new 10-year budget.

The council and Mr Brown were blindsided by suggestions from the Government and SkyCity before Christmas that ratepayers’ money be used to fund the shortfall in costs for the controversial project.

SkyCity said the original $402 million cost had been “revised” to $470 million and to $530 million.

That doesn’t rule out non-cash assistance such as rates relief, and…

Economic Development Minister Steven Joyce floated the idea of ratepayers helping cover operating costs, but has since talked down the idea and suggested the council look at its regulatory fees for the consent and construction process.

But ruling out cash is sensible, and essential.

Who would want to finance a company who makes a deal based on costings that under-esitmated (or under-claimed) the cost by 20-30%?

Sky either cocked up or cooked up a massive con.

And the Government should discount any financial assistance too. They negotiated a deal based on no cost to taxpayers.

If National now bow to Sky’s coercion/attempted blackmail and fork out they will rightfully be blasted for it. It would look  that bad it would be likely to play a major part in the demise of Key’s government.

It would be a stupid business gamble and a very stupid political gamble.

And Sky have made a stupid gamble thinking they can fool us on their cost claims and suck us in to finance their folly.

Call their bluff. If they renege on their deal and ditch the convention centre Sky will be the biggest losers.

In gambling you need to know when to walk away.

Leave a comment

4 Comments

  1. Kittycatkin

     /  25th January 2015

    It’s a hideous building (from the look of the plan), anyway-even uglier than the Sky Tower, which does have one virtue; it makes a wonderful landmark for those of us with no sense of direction.But the new one looks like a big building that’s been put down on a smaller one.

    I can’t think why the designers of the Tower thought that it would look nice in grey concrete.

    Reply
    • old lag

       /  25th January 2015

      Pare Max does.

      Reply
    • kiwi_guy

       /  25th January 2015

      Agree, when you see all the amazing stuff internationally and all Auckland gets is a giant concrete stick to complement the giant coat hanger over the harbour.

      Reply
  2. kiwi_guy

     /  25th January 2015

    Len Brown is a joke and needs to step down so Penny or Goff can have a go without splitting the Lefty vote and handing the mayoralty to some right wing nut job.

    Reply

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