The Government took legal advice on breaking its contract to put $36 million towards Team New Zealand's 2013 America's Cup campaign.

Acting Economic Development Minister David Carter confirmed the funding on Thursday, which he said promised "the potential to generate significant economic benefits" for the country.

Mr Carter said the Government expected "maximum benefit" from the "significant investment" of taxpayer money in the event.

The Government was contractually obliged to produce the funding because of an agreement signed by the previous Labour-led Government. Legal advice sought by the ministry said the Crown had to honour the agreement.

"If the Crown terminated without cause, the Crown's liability would be potentially for the full amount outstanding under the agreement, together with damages and costs, if those were sought under court action by Team New Zealand," Mr Carter said.

But Green Party co-leader Metiria Turei said the funding should be reassessed, considering the tough economic times.

"The allegedly watertight contract that commits the New Zealand Government to funding this challenge needs to be released immediately for public scrutiny," Mrs Turei said.

"Funding the America's Cup is surely a `nice to have', rather than essential spending, in the current economic climate."

Mr Carter said the "eyes of the world" would be on San Francisco for the 2013 regatta.

"Every time we compete internationally, we are showcasing the expertise of our marine industry," he said.

However, the television audience may be only about half of the number that is expected to watch the Rugby World Cup when it kicks off at Auckland's Eden Park in September.

Organisers of the 2007 America's Cup regatta in Valencia claimed a potential global audience of 2.1 billion people from 216 countries. RWC 2011 organisers claim television audiences for the rugby tournament will go beyond four billion.

Emirates Team New Zealand chief executive Grant Dalton said the funding would help return the America's Cup to New Zealand.

"The Government's contribution allows us to be competitive on the world stage."