Convention centre cash offer

NZSki chief executive Paul Anderson (centre left) explains to  Prime Minister John Key and Clutha...
NZSki chief executive Paul Anderson (centre left) explains to Prime Minister John Key and Clutha-Southland MP Todd Barclay some of the features of the new base building at The Remarkables ski area yesterday. Photo supplied.

It was to have been about aviation, but instead, the focus of yesterday's business lunch seemed to be about Queenstown's proposed convention centre.

In a wide-ranging lunch speech to a sold-out crowd at Skyline yesterday - the first event of Queenstown's Winter Festival - Prime Minister John Key said the Government ''will put in money'' for the centre.

''I didn't tell Bill [English, Minister of Finance] that, so please don't tell anybody.

''On the basis that you proceed, come talk to us.''

Speaking to the Otago Daily Times after the lunch, Mr Key said a cash contribution from the Government towards the convention centre could be one way of easing the burden on ratepayers, instead of introducing a bed tax - something Treasury was not traditionally supportive of.

''It's clear in Queenstown that this is a high growth area.

''You can see it in everything from residential housing to the commercial premises that are being erected, and that's going to only go in one direction.

''Ultimately as you have night flights and more capacity into Queenstown you are simply just going to bring more people in here ... ''... the challenge for a place like Queenstown, where you have massive swings in your population, is how to cope with all of that, and how you fund it off a relatively small rating base.''

One of Treasury's concerns with a bed tax was setting a precedent in New Zealand.

''That said, we are really conscious of the pressure on the system here, so I suppose, in a way, if no bed tax, then what else can we do to support them?

''Now, it can be as simple as saying, `We'll make a cash contribution' for instance, to the convention centre when we don't ... do that in Auckland.

''I think the council's main argument would be: 'There's only so much the ratepayers can bear' ... realistically, why should the ratepayer pay that when these are people that are coming into Queenstown?''

Mr Key also told the ODT the Government was close to making an announcement about further changes for resort employers to make it easier to hire international workers.

A temporary exemption for employers from the requirement to provide evidence of an attempt to recruit a New Zealander first expires on June 30.

Mr Key said he was briefed on further measures last week and proposed a ''sort of a halfway house''.

''We want to absolutely encourage New Zealand employers to take on New Zealanders ... but we do want to make the process a little easier for them ... to take on non-New Zealanders and we'll be announcing that soon.

''We recognise the pressures on the system here and actually the employers appreciate that we have a New Zealanders first policy, but we've got to find something which works for both sides.''

tracey.roxburgh@odt.co.nz

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