Wellington, June 15 NZPA - The Government and Auckland Regional Council have bought Queen's Wharf for $40 million, Prime Minister John Key said today.

They each paid $20m to buy the wharf outright from Ports of Auckland to make sure it would become the cornerstone of waterfront development, Mr Key said.

He announced last week the Government wanted Queen's Wharf to be "party central" for the Rugby World Cup in 2011 and a fan site people would gravitate to during the tournament.

"We consider this joint purchase excellent value for money," Mr Key said at his post-cabinet press conference.

"By purchasing this site we have secured an asset that will live long after the Rugby World Cup has finished and give pleasure to visitors and locals alike for generations to come."

Mr Key said the challenge was for Auckland city leaders to move quickly and begin the programme that would turn the wharf into a world-class waterfront attraction.

"We have bought an asset that, if developed properly, will have a major impact on Auckland and New Zealand's economic performance."

Mr Key said the next step was for Auckland city to come up with proposals and the Government would like to see a new cruise ship terminal built.

"It's a half-a-billion dollar industry and growing. If we are going to build that cruise ship terminal, building it before the World Cup makes sense to the Government," he said.

Ports of Auckland said the wharf would be vacated by April next year.

"The sale of Queens Wharf is something we have been working towards for a number of years," said managing director Jens Madsen.

"We are very pleased that agreement has been reached."

NZPA PAR pw nb