30 August 2013

NZIER report shows just 18 more jobs from SkyCity deal

A report the Government has relied on to assess the employment impact of the SkyCity convention centre shows the deal will increase the number of jobs in New Zealand by just 18, Green Party Co-leader Metiria Turei said today.

The Green Party has obtained under the Official Information Act, a New Zealand Institute of Economic Research (NZIER) report provided to Economic Development Minister Steven Joyce on the economic impact of SkyCity on Auckland and employment numbers. The NZIER report says that Auckland will gain 380 full-time equivalent (FTE) jobs during construction and 340 FTE jobs after that. However, other parts of the economy will be smaller than they otherwise would be due to reduced investment and a high dollar. The nationwide increase in employment is just 18 FTE jobs.

“John Key and Steven Joyce told us the SkyCity deal would create 800 jobs for New Zealand when they had a report saying the real number was 18 more jobs,” Mrs Turei said.

“National told New Zealand that selling our gambling laws would create 800 job at the convention centre and employ 1000 workers during the construction phase. What they didn’t mention is that the cost to the rest of the economy destroys nearly as many jobs.

“The NZIER report points out that there will be fewer jobs in the rest of New Zealand both during construction and once the convention centre is operational.

“Key and Joyce must therefore simply be relying on sheer optimism or rosy figures provided by SkyCity itself.

“This information was not available to National MPs who have been saying that the job gains from the convention centre justify the social harm that will result from hundreds more pokies and automated gaming tables at SkyCity,” Mrs Turei said.

“Parliament is being asked to give a casino operator a 35 year license with terms that are directly contrary to the Gambling Act and could not be approved by the Gambling Commission.

“Other parties interested in building the convention centre were excluded early on by the Prime Minister in negotiations heavily criticised by the Auditor-General.

"Those MPs who voted for the SkyCity deal on the basis that the economic impacts would outweigh the social harm need to read the NZIER report and rethink their support,” said Mrs Turei.

Image of relevant section of the report:

ENDS

[See also: Scoop Document: NZIER On Convention Centre Economic Impact]

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