Interesting blog bits

And in local news ...

1. Eric Crampton on the Take Over
   
2. Welly gnome asks Christchurch Central Development Unit – Why?

   A good queation. Does the government really know better than the local property owners? Clearly they think they do.

3. Not PC notes that The Grey Ones in Christchurch just got greyer

   And to the “regime uncertainty” already plaguing and delaying would-be investors in Christchurch’s rebuild, he has just added another three months (plus cockups) while this new “unit,” headed up by a bloke pinched from the Canterbury Earthquake Recovery Authority, prepares yet another top-down plan to be imposed on property owners—by planners pinched from the very same council who drew up the earlier plans.

4. Homepaddock argues Chch rebuild gets welcome boost

   A positive spin on what the government is doing.

and in other local news ...

1. Eric Crampton on SkyCity

   Do not believe the "broader benefits" case for building convention centres. Nothing stops hotels near a proposed centre from getting into sponsorship arrangements where they pay for listings in standard convention centre marketing materials to help fund the centre; I find it more likely that the benefits are too small to make it worthwhile than that public goods problems, easily resolved by assurance contract, stop things.

2. At Groping towards Bethlehem they are Betting on a new convention centre

   The deal is in the same category as sports stadia. he theory is that the city gains all kinds of revenue from some big facility, but no single business can get enough of the profits to build the facility. If the city (or state) intervenes, they can fund the facility. They get the increased tax revenue, business is boosted, and everyone gets free ponies and wi-fi. Only, it doesn’t work that way according to people who’ve actually run the numbers. From the outset, it doesn’t really seem like a good use of public resources.

3. Sam Richardson on the Sky City - convention centre deal

   According to this December 2011 story from the New Zealand Herald, international visitor receipts in Auckland were $2b. This would mean that an increase of $85m would be around 4.25% of visitor receipts, which while not large, is not insignificant either. As for jobs, it is highly likely that the 1000 jobs in construction will be sustained during this period rather than created - other work will be moved to accommodate the new centre. This is an opportunity cost that should be considered. The 800 new jobs - this will be very much dependent on whether the new centre generates new business or merely reallocates existing convention business from elsewhere within Auckland. I have no doubt that a new facility would bring in some new business - whether it is enough to justify the cost, that is another matter entirely.

4. Kiwiblog on The Sky City “deal”

   A positive spin on what the government is doing.