Cabinet backs two bidders for Ruapehu Alpine Lifts

Monday, 12 June 2023

A decision is set to be made on the future of the Ruapehu ski fields.

Cabinet has agreed to support Whakapapa Holdings and Pure Tūroa to take over the ski operations at Mount Ruapehu.

It is understood the mountain would be split into two skifields with one business running each.

Four bidders had been vying for the contracts to take over and Mayor Weston Kirton said in May government officials had picked the two they favoured to run each ski field separately.

Minister of Regional Development Kiri Allan said the Government support would mean previous debt owed to Kānoa and the Department of Conservation would be written off, including contingency for the removal of redundant infrastructure.

There would also be assurance that historical “make good” obligations would be fulfilled.

“Work has been ongoing to find a solution to allow activities on Ruapehu to continue, following Ruapehu Alpine Lifts Limited (RAL) being placed in voluntary administration last year at the request of its directors,” Allan said.

“Today, Cabinet has agreed to provide support for these companies to purchase the former RAL assets and business, so they can take on the assets and begin operations. Cabinet has also agreed that Kānoa, the Department of Conservation and Te Arawhiti will work closely with iwi and hapū to ensure their interests and relationships with Ruapehu are addressed and they are comfortable with the process and outcome.”

It’s worrying local communities whose businesses are largely dependent on winter tourists. Video first published October 13 2022.

She said the Government focus had been on ensuring jobs in the region would be secured to allow the ski season to go ahead this year.

“Both Whakapapa Holdings and Pure Tūroa will offer future benefits for life pass holders. Details of these benefits and arrangements will be disclosed in the administrators report due for release [on Tuesday],” Allan said. “The ideal outcome is that the ski fields can open this winter. The Government has been working hard to ensure this can happen.”

A watershed meeting of creditors is due to be held, probably on June 20. That would involve a vote on whether to liquidate RAL and sell the assets to the two companies.

If the vote did not pass, Allan said, the voluntary administrator would hand the company back to the RAL directors who would probably liquidate it.

”Alternatively, other creditors may propose a deed of company arrangement. This is an agreement between the business and its creditors to restructure the business, usually by repaying outstanding debt at a lower amount and/or over a period of time.”

She said, if the transaction with Whakapapa Holdings and Pure Tūroa did not proceed, the Crown would write off debts to Kānoa and the Department of Conservation and the department would undertake remediation work on the mountain that would cost between $47 million and $88m.

It was earlier reported that 14,000 life pass holders (LPH) are against the idea and could veto the proposal.

LPH representative Sam Clarkson said there had been insufficient consultation with the collective Tongariro National Park iwi and passholders had been left in the dark.

Ruapehu Alpine Lifts (RAL) went into voluntary administration last October owing $45 million. In the months before it a la ck of both snow and visitors led to more than 130 job losses.

Jason Platt, chairman of Ruapehu Skifields Stakeholders Association, wrote a letter to Prime Minister Chris Hipkins requesting he intervene in the proposal, so no decision were made “without proper engagement with all interested parties and stakeholders”.

“Despite MBIE’s recent claims to have conducted adequate consultation, there appears to have been very minimal genuine attempt by MBIE to engage with all interested parties to find a solution for continued operation of the Mt Ruapehu ski fields.

“Reports from the local community indicate that there has been alarmingly limited consultation by MBIE to date with key stakeholders, and most importantly with local Iwi,” the letter read.

Clarkson said he expected creditors ANZ and MBIE would vote as a $24m block at the watershed meeting.

The decision comes as ski fields across the country open for the season.

Mt Hutt opened on the weekend while further south, Coronet Peak was due to open June 16. Cardrona and the Remarkables were scheduled for June 17. Porters and Round Hill were scheduled to open June 23 and Treble Cone and Ōhau Snow Fields on June 24.