New Zealand Government Announce Loses from Last Year’s World Championships

August 11, 2011

A report published by the New Zealand Government has announced that last year’s rowing World Championships at Lake Karapiro lost $1.8 million.

The event was supposed to make a profit of $417,749.

Sport and Recreation New Zealand (Sparc), a government funded agency, claimed the reasons for the loss relate to shortcomings in governance and inadequate financial management. There was a lack of financial monitoring and no use of commercial acumen. Poor attendaces to the event also contributed.

A Rowing New Zealand (RNZ) company received $1.2 million in Government funding for the event and $500,000 from a Ministry of Economic Development fund.

Sparc chief executive Peter Miskimmin said the review was a damning reminder for those involved in hosting major events in New Zealand, including the Government agencies which invest in them.

“Running events is a complex and risky business, and those who take on the responsibility of hosting them must be careful and accountable,” he said.

“Running a major event requires specific skills and expertise around event management. 

“That must be reflected in the governance and management that’s put in place, and the investment oversight.”

The review was a condition of the Government agreeing to loan $1.1 million in February.

Miskimmin claimed operationally the event was a huge success. 

“But the review tells us they were living beyond their means,” he said.

“The key stakeholders in the event, including the board, have all proactively engaged and had input into this review, and have provided considerable feedback throughout the process.”