New Zealand International Convention Centre Bill: First reading speech

I move that the New Zealand International Convention Centre Bill be now read a first time. I nominate the Commerce Committee to consider the Bill. At the appropriate time, I intend to move that the Bill be reported to the House by 14 November 2013.

Mr Speaker, it gives me great pleasure to introduce this Bill.

This Bill is first and foremost about investment, jobs and growth for New Zealand and their families.

For years the tourism industry and business sector have been seeking an international-sized convention centre to be built in New Zealand to ensure we compete with Australia and Asia by tapping into the growing market of high-value business visitors.

This Bill shows that this Government is delivering on not only that but also delivering on its election promise to create jobs and growth.

The Agreement signed last week between the Government and SkyCity to build a world-class convention centre in Auckland will create jobs, boost tourism, and bring significant benefits to the Auckland and New Zealand economies. 

And all of this is for little, if any investment, by New Zealand taxpayers.

These benefits include a projected $90 million annual injection into the economy; an estimated 1000 jobs during construction; and 800 jobs once it is up and running.

It is estimated the new facility will cater for 3500 international conference delegates at any one time and attract around 33,000 more delegates each year.

It is yet another worthy initiative – one of many introduced under the leadership of this Prime Minister – to build a more competitive and productive economy for this country.

And it is similar to an arrangement signed in 2001 to build a much smaller convention centre – one signed off under the Labour Government of that time, and celebrated by the former Minister Helen Clark and her then Tourism Minister, without any of the hysterical protest we see from the Green Party and parts of the Labour Party today.

Mr Speaker, this Bill gives effect to the Convention Centre Agreement including:

• giving effect to the regulatory concessions
• ensuring the NZICC Agreement terms may be enforced as intended
• establishing the protection of the names New Zealand International Convention Centre and NZICC
• And ensuring the land upon which the international convention centre is to be built cannot be used for any other purpose.

The concessions granted in the Agreement are applicable to only the holder of the Auckland casino operating licence and not all casino licence holders.

The Bill provides that the regulatory concessions may not be varied except by an Act of Parliament.

Once implemented, the regulatory concessions provided under the Agreement will be subject to the existing gambling regime. The Gambling Act will apply to the concessions, and all gambling conducted under the concessions, as if they were permitted under that Act.

The concessions will therefore be administered, monitored, and enforced in accordance with the Gambling Act and any rules and regulations made under that Act. This is very important for the House to note.

Under the Bill, a person is prohibited from incorporating or registering any entity under the name New Zealand International Convention centre or NZICC. And a person is also prohibited from using either of these names as the name of an organisation or building and from trading or carrying on business under either of these names unless the person has authorisation from the Minister.

Mr Speaker, the House should note it’s the Crown’s intention to grant to SkyCity an exclusive licence to the NZICC brand as part of the agreement.

The Bill provides for the following regulatory concessions for SkyCity and these take effect on signing of the Building Works contract and apply until 30 June 2048 unless the Agreement is terminated prior to that date.

These include:

• An extension of SkyCity’s Auckland casino licence, due to expire in 2021, out to 30 June 2048, and an amendment to cover all of SkyCity’s properties in Federal Street
• An additional 230 “pokie machines” on the casino floor
• An additional 40 gaming tables
• A further 12 gaming tables that can be substituted for automated table game player stations (but not “pokie” machines)
• Up to 17 per cent of pokie machines and automatic table games (in restricted areas only) being able to accept banknotes of denominations greater than $20
• And introducing TITO and card-based cashless gaming technology on all pokie machines and automatic table games at Auckland casino.

Mr Speaker, the Government has insisted on a number of significant harm minimisation measures to deter problem gambling and money laundering as part of this agreement.

The Agreement requires SkyCity to implement these by the time the regulatory concessions come into effect. They are:

• A predictive modelling tool that analyses data to identify players at risk of problem gambling
• A voluntary pre-commitment system where players can elect to restrict the amount of time they play or the amount they spend
• Doubling the number of Host Responsibility specialists to deliver 24-hour, seven-day-a-week coverage.
• Introduction of player identification requirements when amounts over $500 are being put onto, or cashed from, TITO tickets in non-restricted areas.

The adoption of these measures does not affect SkyCity’s on-going obligation to comply with harm minimisation and anti-money laundering obligations. Again, this is a very important point for the House to note.

An independent assessment by financial advisory firm KordaMentha has described the value of the concessions made to SkyCity in exchange for the construction and operation of the Convention Centre as reasonable for both parties.

And again, the 230 new ‘pokie’ machines is the same number granted to SkyCity under the previous Government in 2001 for the development of the existing, and much smaller, Auckland Convention Centre.

Overall the number of pokie machines in New Zealand is falling by around 500 a year. This deal slows that reduction by less than six months.

It is by no means clear at all that a marginal increase in machines in one casino will increase harm overall; especially when the total number of machines across Auckland and New Zealand continues to decline.

Mr Speaker, we on this side welcome the Bill being regarded as a conscience vote.

It will allow any remaining MPs in the Opposition who actually see themselves as being in favour of jobs and growth to demonstrate that by voting in favour of this Bill they can really support jobs and growth and we look forward to their support.

This measure is just one measure in a number the Government has been proud to support as we focus on jobs and growth for New Zealand families.

Our changes to the RMA and Crown Minerals Act;  and legislation on Ultra-Fast Broadband, Employment Relations and others; have all been about creating jobs and growth in this country while minimising social impacts.

This Government lines up against the social harm of unemployment.

New Zealand needs an international-sized convention centre in our biggest city to be internationally competitive.

A $402 million International Convention Centre in Auckland will do that and be a major asset for New Zealand for years to come.

Mr Speaker, I commend this legislation to the House.