SkyCity and the New Zealand government have spent the past few months negotiating the specifics of a controversial development deal. In return for 500 new poker machines, SkyCity would build Auckland’s new convention centre. While the deal sounds fair at first, the general public criticized the idea of introducing new pokies into the community.
Now, SkyCity is threatening to take its offer from the table, as the company grows impatient with the local government’s inaction. Shortly after the deal was announced, The Greens requested that the Auditor General carry out an investigation of the deal. It would present the general public with a comprehensive, unbiased look at the benefits and drawbacks of the deal.
It would also provide an overview of the costs to the local community, including gambling spending. The Auditor General stated that most investigations take 3 months to complete. However, more complex situations are likely to take twice as long, which has been the case with the SkyCity deal. While The Greens are pleased with the fact that the Auditor General is taking its time, but not everyone has the same patience.
SkyCity CEO Nigel Morrison is not impressed with how long it has taken the Auckland government to progress with the deal. Although negotiations were smooth, the government seems to be taking its time at this point in the deal. As such, Morrison has stated that his company will back out of the SkyCity convention centre deal if the government does not make a decision by the beginning of next year.
Since the publishing of the audit has been delayed until 2013, Morrison is giving John Key little time to decide. “If we can't get a conclusion to these negotiations, we will have to look at alternative options,” Morrison says. He has not specified what ‘alternative options’ are available; however, it is likely that local residents will take on a tax increase in order to fund the construction of the new convention centre if SkyCity refuses to foot the cost.