Mayor told to front up on bid for Beckham
A report in NZ’s Dominion Post says that Wellington Mayor Kerry Prendergast has been accused of misusing a confidentiality clause by refusing to say how much the council will pay to bring football superstar David Beckham to the capital.
The council has agreed to partially fund a match between the Beckham-led LA Galaxy and Wellington Phoenix, owned by millionaire property developer Terry Serepisos, should negotiations for the Westpac Stadium-hosted match be successful.
It would cost more than $1.1 million to bring Beckham and his team to the city.
Ms Prendergast would not reveal how much of the council’s $1.5 million Events Development Fund would be used to ensure the game went ahead, citing commercial sensitivity.
The deal – signed off by a council subcommittee made up of Positively Wellington Tourism chairwoman Glenys Coughlan, councillor John Morrison, council chief executive Garry Poole, and Ms Prendergast – has outraged councillor Jack Ruben.
“The ratepayers have every right to feel as angry … as I am by the misuse of the confidentiality clause in order to deprive ratepayers of information to which they are justly entitled.”
He was dismayed Ms Prendergast appeared to be answering to Mr Serepisos rather than to ratepayers. “I think she has been unwise … in that she has appeared to enter into an arrangement with a property developer. The public has the right to know details of the deal.”
But Ms Prendergast said if the council revealed its level of funding for any big event it ran the risk of being outbid by other cities.
The council’s confidentiality practice had been examined last year by the ombudsman, she said. “He confirmed that … what events receive support from the Events Development Fund, and the amount they receive, can remain confidential between the council and the promoter.”
Funding for the development fund comes “100 per cent from commercial rates” because it was the sector benefiting most from major events in the city.
The council banked on 40 per cent of the audience for Beckham coming from outside Wellington, spending money in restaurants, bars, and for accommodation, and giving it a return of $20 for every dollar spent.
The figure is based on an average spend per person of about $350 a day.
Councillor Rob Goulden said the development fund, which was established in 2003, had been increased by nearly $500,000 this year to attract another “iconic event” to the city.
But he was wary after Tiger Woods’ visit to the 2002 New Zealand Golf Open failed to bring the return expected, and saw the council lose $234,000.
He was also cautious after the aborted attempt for Wellington to host the V8 Supercar race cost the council $175,000.
“I’m a little bit gun shy of these things now … you’ve got to remember they’re not all successes.”
Mr Serepisos said any profit from the one-off game against the Galaxy would go to the Phoenix franchise, but any losses would also be worn by the club.
He expected a decision on whether the game goes ahead to be confirmed later this week.
Report by The Mole
John Alwyn-Jones
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