McCully, Minister for Sport and Recreation and for the Rugby World Cup, visited Dunedin yesterday, firstly having a look at the stadium then visiting the Academy of Sport (South Island) facilities at Logan Park.
From what he could see, the stadium was looking "terrific".
With the Government contributing $15 million to the venue, it wanted to keep a close eye on progress.
"The impression I get is the city has moved past the controversial issue and decided it is an important piece of infrastructure for the city.
"It is going to give the city a whole lot of potential and ideas on how you can leverage off it to support sport in the region."
McCully said the World Cup preparations were going well, with the first match between New Zealand and Tonga set to start exactly 18 months from yesterday.
"Every other stadium is well placed in terms of being ready.
"Here is a little bit tight and we always knew that.
"But everyone is working hard down here and have been lucky with the weather, but you make your own luck."
He said despite the squabbling of Auckland mayors, the Government and the Auckland Regional Council were committed to having a party central complex on the Auckland waterfront.
Plans would be released in the next few weeks.
If anything, decisions made by Auckland mayors showed how most people could not wait to see the overhaul of the Auckland governance system, he said.
A temporary facility would be built and would look terrific.
McCully said the academy in Dunedin was in a good location to take advantage of the Government's commitment to go to the next level in elite sport.
Though the details had yet to be announced, he said there had to be decisions about key infrastructure and identifying talent from a regional base, which would then move on to the national stage.
When asked to comment on the performances of the New Zealand Winter Olympians, he said New Zealand was in a "building stage" for winter sport.
He said part of the picture was looking at ways the country could help winter sport develop.
