Ann: GENERAL: SKC: SKYCITY signs full agreement f

• Release Date: 08/07/13 10:30
• Summary: GENERAL: SKC: SKYCITY signs full agreement for NZICC
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SKC
08/07/2013 08:30
GENERAL

REL: 0830 HRS SKYCITY Entertainment Group Limited (NS)

GENERAL: SKC: SKYCITY signs full agreement for NZICC

SKYCITY Entertainment Group Limited (SKYCITY) announced today that it has
signed the full Project and Licensing Agreement with the New Zealand
Government to design, build, own and operate the New Zealand International
Convention Centre (NZICC).
This detailed agreement formalises the terms set out in the Heads of
Agreement signed on 12 May 2013 for SKYCITY to design, build and fit-out the
NZICC, on the central Auckland site bounded by Nelson, Hobson and Wellesley
streets. In return for this NZ$402 million investment, the Government will
extend SKYCITY's Auckland Casino Licence and has agreed to a package of
regulatory concessions(refer Appendix 1). The agreement also includes
significant additional host responsibility measures
to be introduced at SKYCITY Auckland.  "Today is an exciting day for
Auckland, New Zealand and SKYCITY. The full NZICC agreement is a significant
milestone in the development of this long-awaited and vital piece of national
tourism
infrastructure," SKYCITY Entertainment Group chief executive Nigel Morrison
says.  "The NZICC will deliver significant economic growth, jobs, high value
international tourism and
become a catalyst for further tourism and entertainment development in the
'Victoria' precinct and the Auckland CBD. SKYCITY is fully funding the
project, meaning that the NZICC will be delivered without requiring funding
from taxpayers or Auckland ratepayers. "The estimated three-year construction
period will require 1,000 construction jobs and will result in
SKYCITY employing an additional 800 New Zealanders when the NZICC is fully
operational, over and above the more than 3,500 people we currently employ in
Auckland," Mr Morrison says.
"The Agreement to proceed with the NZICC comes at an exciting time for
Auckland with the Government also committing to the development of the
Central Rail Link and a series of other major
transport infrastructure projects which will further reinforce Auckland as a
leading international city. "Since the announcement of the NZICC, there have
been more than 50 enquiries from around the world for major conventions and
exhibitions from 2017 onwards with over 90,000 potential
delegates, excluding accompanying partners. Such a level of immediate
interest clearly demonstrates the significant potential demand for such a
facility in New Zealand and is proof that the NZICC will attract high-value
events," Mr Morrison says. Based on current anticipated timelines and subject
to the passing of enabling legislation and an
approximate three-year construction period, the target date for completion of
the NZICC is 30 September 2017.
The full agreement includes the Design Brief for the NZICC, which details the
functional requirements and specifications of the NZICC and also the
Operating Standards detailing SKYCITY's
operational obligations. The agreement is subject to a number of conditions
more fully detailed in Appendix 1.

As stated in the Design Brief:
"...the NZICC is an investment in New Zealand's future. The convention centre
industry is one of the most connected and innovative businesses in the world.
There is no better opportunity to stimulate business opportunities and
connections than being a significant part of this global industry. Success in
this case means significant new business opportunities and
employment in New Zealand as well as the growth of the existing strong
tourism industry and a reinforcement of the New Zealand brand." The NZICC is
intended to deliver the full suite of convention facilities for hosting a
full programme for
3,500 convention delegates as well as hosting multiple concurrent events,
which are the backbone of the convention industry. The facility will include
at least 8,600m2 of exhibition space, a dedicated plenary facility to host up
to 3,500 delegates and 3,500m2 of dedicated meeting/breakout spaces. To
ensure that SKYCITY can proceed to develop the NZICC to the design brief,
SKCITY has purchased 93 Hobson Street from Television New Zealand. "In
addition, we will endeavour to acquire 91 and 85 Hobson Street from TVNZ for
a fair price, to
further enhance the operational flexibility of the NZICC," Mr Morrison said.
"We understand that the legislation giving effect to the regulatory
concessions in the full agreement
will now go before Parliament and will be subject to a full select committee
process, including public
consultation. "We welcome this process and strongly believe that this
agreement, the benefits of the NZICC and
our world-leading host responsibility programme will stand up to the
inevitable scrutiny. I want to reassure New Zealanders that the SKYCITY Board
and management take our host responsibilities very seriously," Mr Morrison
says.
The agreement includes significant additions to SKYCITY's leading Host
Responsibility Programme, which is already considered the most comprehensive
in New Zealand and was recently described as world-leading by international
expert Associate Professor Dr Paul Delfabbro at the University of
Adelaide:

"Collectively the responsible gambling measures provided in both Australia
and New Zealand
are more rigorous than anything offered in the United States, The United
Kingdom and Asia".

And:

"SKYCITY's programme would be considered of a higher standard than what is
offered in other casinos in Australia". The new host responsibility
initiatives being introduced by SKYCITY, under the agreement include:

- Doubling the number of full-time Host Responsibility staff in Auckland,
providing dedicated
Host Responsibility staff onsite at all times, 24/7;
- Introducing predictive modelling technology which analyses player data to
help identify
customers most at risk from gambling harm;
- Continuing to roll out SKYCITY's Voluntary Pre-commitment Programme
allowing customers
to set both the time and the amount they wish to spend over a given period.

"In addition, as part of SKYCITY's commitment to continuous improvement,
SKYCITY recently announced that it had agreed with Auckland Mayor Len Brown
that it will trial the use of further measures, including facial recognition
technology, to identify and prevent barred problem gamblers from gaining
entry to the Auckland casino," Mr Morrison says. Len Brown recently stated
that the NZICC would bring "extraordinary economic benefits".
In response to this initiative, Professor Max Abbott, director of AUT
University's Gambling and Addictions Research Centre said in a recent
statement: "No other casino in the world has introduced facial recognition
technology, electronic monitoring and 'pre-commitment' to time and/or
expenditure limits together. It is groundbreaking and could raise the bar
across all gambling settings and forms".

In closing, Mr Morrison says: "This is a landmark announcement for Auckland,
New Zealand and SKYCITY. The NZICC will establish New Zealand as a leading
destination for conference, convention
and exhibition business, which currently isn't served by any existing
facilities in New Zealand. We look forward to working with the Government and
Auckland to realise this vision and deliver this significant project for New
Zealand."
End CA:00238303 For:SKC    Type:GENERAL    Time:2013-07-08 08:30:36