A ratepayer-funded events company is denying claims it's undermining local businesses and charging below-market rates.

The Auckland Chamber of Commerce says dozens of businesses could be forced out of town by Regional Facilities Auckland's deals with preferred caterers and contractors.

It says it's using its monopoly position to secure cut-throat deals and drive prices down.

But RFA spokesman Paul Brewer says the company always charges fair market rates.

He says it has a competitive tendering process for convention catering, but uses a wide range of local contractors across its business.

"The small profit that business makes goes into a whole raft of events that we provide without additional funding from Auckland ratepayers."

Paul Brewer says the use of major contracts is critical to keeping the convention arm profitable and competitive.

He says profits from that arm fund contracts with other suppliers in other parts of the business, and reduces the company's reliance on ratepayer money.

"To attract profitable activity, we have to be able to provide the kind of packages that clients would look for."

More initiatives on the cards

Chamber of Commerce chief executive Michael Barnett wants the council to urgently investigate RFA.

He says up to 40 businesses could be under threat from its practices.

"Their turnover is down by a million dollars. These are guys that are going to have to shut up shop or get out of Auckland."

In its 2014 annual report, RFA says the Auckland Conventions arm plans to continue to 'leverage market advantages'.

That includes 'applying the benefits of economies of scale to reduce costs'.

The report says the preferred catering contract with Epicurious Catering is one of several new initiatives it plans to roll out this year.

Ratepayer funding

Auckland Conventions is profitable, but other "public good" arms of RFA run at a loss.

The company draws more than half its income from ratepayers, receiving about $45 million in Auckland Council grants every year.

The rest of its income comes from private sources, including about $40 million in revenue every year.

The organisation has asked the council for $30 million to fund stadium upgrades.

However, the council has shelved those plans while it talks with the Warriors over their potential relocation from Mt Smart.