SkyCity convention centre plans reviewed as public funding ruled out

The redevelopment of the new convention centre at Auckland’s SkyCity may be scaled back after public funding for the project was ruled out by the New Government.

SkyCity has now agreed to withdraw its bid for public funds after a cost blow out pushed the cost of the planned  New Zealand International Convention Centre (NZICC) from $300 million to as high as $395 million.

Skycity Entertainment Group had previously agreed to build the 3,500 seat convention centre for free in return for a 28 year extension to its casino license, more tables and pokie machines and other concessions.

However, with costs rising the New Zealand Government had been under public and political pressure not to put in any taxpayer funds.

Now the company has agreed to redesign the centre and to keep cost within the original budget.

Commenting on the change, New Zealand Economic Development Minister Steven Joyce said the redesigned convention centre might end up 10%, "but no more than that."

However, local media reported that critics are questioning whether the plan for an “iconic world class centre” will now be achieved, and also whether a smaller center will be able to compete with larger facilities in Australian cities.

Opposition parties said ministers had been fooled into allowing SkyCity to build a smaller centre while still retaining its valuable gambling concessions.

SkyCity's Chief Executive Nigel Morrison, said the company was still committed to a "landmark" building, and had accepted the Government’s decision.

24th December 2014 - SKYCITY GIVES PROGRESS UPDATE ON NZICC PROJECT

7th July 2014 - SKYCITY SECURES AUCKLAND CBD LAND FOR INTERNATIONAL CONVENTION CENTRE