It will be more difficult for the Government to justify financial backing for Team New Zealand if Auckland misses out on a Qualifying Regatta, Prime Minister John Key says.
There's uncertainty about whether a Regatta will be held in Auckland in early 2017, with America's Cup competitors and organizers mulling rule changes which would "dramatically" reduce costs, primarily by racing in a smaller boat.
If there's no racing in Auckland, "That would make it very challenging to put in money," Key told Radio New Zealand on Monday.
"It becomes difficult to justify putting in money if it's only raced in Bermuda, there's not a lot in it for us in Bermuda," he said.
"We really need something in New Zealand."
One of the America's Cup five confirmed challengers, Italian syndicate Luna Rossa, has opposed the proposed changes.
It says it will withdraw from the event if America's Cup holders Oracle don't follow rules which require the agreement of all challengers to any change in boat class.
Dalton said late last week that Team NZ supported Luna Rossa's position "simply because we believe it's too late to make a fundamental change to the rules unless all the teams agree".
He said the proposal to race the smaller boats would rule out Auckland as a venue for the qualifying series.
"We absolutely support cost-cutting, it makes total sense and we're all for that," Dalton said.
"But the proposal was to go down to AC45s, a much smaller boat, and lose Auckland as a qualifier. That was the chip that was played to convince other teams."
Dalton said the decision to oppose the proposal was easy.
"We agree with Luna Ross and their stance in terms of the correct way it should be handled with the teams, and we absolutely need Auckland as a qualifier."
Source:NZ Newswire
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