Sailing-NZ govt settles dispute with America's Cup organisers
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[December 22, 2020]
WELLINGTON (Reuters) - The New
Zealand government department in charge of next year's America's Cup
has ended a long-running dispute with holders Team New Zealand (TNZ)
following an investigation into financial impropriety.
TNZ were cleared of financial wrongdoing in August following an
audit of the public funding from the Ministry of Business,
Innovation and Employment (MBIE) to the body organising the regatta
on behalf of TNZ -- America's Cup Events (ACE).
MBIE said a mediation hearing on Tuesday had settled the outstanding
issues over the expenditure of some NZ$3 million ($2.12 million) in
public funding around the development of the class rule -- the boat
design -- for the Cup.
TNZ had previously said the costs involved in developing the rules
and design of the superfast AC75 foiling monohulls were part of the
costs involved in running the event.
"MBIE is satisfied that event investment in relation to the Crown's
contribution has been or will be properly incurred by ACE," the
department said in a statement.
"MBIE, TNZ and ACE have now agreed that there was a reasonable and
legitimate basis for TNZ and ACE to consider that the class rule
costs were within the scope of event costs in the Host Venue
Agreement.
"MBIE accepts that expenditure incurred to date under the HVA has
been incurred in good faith."
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The New Zealand government and Auckland Council have contributed
about NZ$250 million to host the event, including infrastructure
spending.
MBIE agreed to give about NZ$40 million in funding to ACE.
The four teams, TNZ and three challengers from Italy, Britain and
the United States, had their first competitive races in the yachts
last week.
Thousands of people flocked to Auckland's waterfront and onto
Waitemata Harbour to watch the racing, with officials having to
delay the start of races on Saturday as they attempted to move
spectator boats after a late change to the course.
The challenger series runs from Jan. 15-Feb. 22 with the winner
facing TNZ for the Cup in March.
($1 = 1.4164 New Zealand dollars)
(Reporting by Greg Stutchbury; Editing by Peter Rutherford)
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