Today, the NZ Herald reported:
So John Key has been caught out blatantly lying again to promote gambling.
This in fact makes the entire deal for a convention centre in exchange for up to 500 additional pockie machines uneconomic.
The Ministry of Economic Development’s Feasibility study (PDF), into the convention centre (presumably based on the incorrect job figures), originally showed that the convention centre would provide around $397 million in economic benefit to New Zealand over 20 years.
However the economic benefits are greatly reduced with a reduction in real jobs.
The socio-economic costs associated with the deal between SkyCity and National are estimated to be in excess of $277 million. A reduction by 85% in construction jobs and around 50% less economy wide jobs means that the benefits do not outweigh the costs.
The convention centre should be put up for tender again. A better deal that does not include increased social harm and selling our laws to promote gambling should be negotiated.
Mr Key has championed SkyCity's involvement in the convention centre deal since discussing it at a dinner with the firm's directors in 2009.
He has cited new jobs as one benefit of the centre, telling Parliament last month: "The SkyCity convention centre would create about 900 jobs in construction and 800 jobs working your way through it."
A press release from the Beehive set the number of construction jobs at 1000 and staff employed at the centre at 800.
[...]
The original Horwath report said 150 jobs could be created over a five-year construction period for a total of 750.
So John Key has been caught out blatantly lying again to promote gambling.
This in fact makes the entire deal for a convention centre in exchange for up to 500 additional pockie machines uneconomic.
The Ministry of Economic Development’s Feasibility study (PDF), into the convention centre (presumably based on the incorrect job figures), originally showed that the convention centre would provide around $397 million in economic benefit to New Zealand over 20 years.
However the economic benefits are greatly reduced with a reduction in real jobs.
The socio-economic costs associated with the deal between SkyCity and National are estimated to be in excess of $277 million. A reduction by 85% in construction jobs and around 50% less economy wide jobs means that the benefits do not outweigh the costs.
The convention centre should be put up for tender again. A better deal that does not include increased social harm and selling our laws to promote gambling should be negotiated.
