Public money to prop up Ruapehu ski season, Regional Development Minister Kiri Allan says

Public Policy / news

26th Jun 23, 8:06pm by Eric Frykberg

The Government has offered up to $5 million to the liquidators of Ruapehu Alpine Lifts (RAL) to make sure this winter's Mt Ruapehu ski season can go ahead.

This was announced Monday afternoon by the Regional Development Minister Kiri Allan.

The company went into administration earlier and a rescue package failed when it was voted down by creditors.

Allan says the scheme will allow time for liquidators to make a decision on the company's future.

“Ruapehu is a very significant part of the economy in the central North Island, accounting for around a tenth of regional GDP, or $100 million per year," Allan says.

"The season going ahead will save hundreds of jobs and support local tourism, the regional economy and the community, while a long-term solution is found."

She adds the money will provide workers and ski field-dependent businesses with some security.

Allan adds the Crown has also received a further expression of interest to take over the ski operations on the mountain from the central plateau iwi Tūwharetoa in addition to two other expressions of interest.

A final decision will be made by the liquidator, but Allan says Government is now considering the three bids for Government support, and the Ministry of Business, Innovation & Employment has been asked to research this matter further.

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21 Comments

by Beanie | 26th Jun 23, 8:17pm 1687767443

Let's see how Ministers manage conflicts of interest one more time before they are booted to touch in the election.

by Nzdan | 26th Jun 23, 11:47pm 1687780038

Kiri Allan is the Justice Minister. One of the majority shareholders is a District Court Judge. *shrug* Probably a long bow to draw.

by Grattaway | 26th Jun 23, 9:14pm 1687770840

MBIE and probably ministers are already donkey deep in this one

especially given that MBIE as a creditor appears to be dictating how the whole process will be handled and who will get what

The MBIE Kanoa business development team appear to have a very inflated view of their own expertise and skill set but dont really seem to appreciate how best to manage conflicts of interest or to proceed with a sale process for what are very risky business operations

and I do need to declare my own COI as I am a long time Ruapehu skier, was a local and am a life pass holder

by sossie07 | 26th Jun 23, 9:27pm 1687771671

Snow cams are looking fantastic! Can't wait for a ripper of a power packed season.

by Hamish | 27th Jun 23, 9:23am 1687814595

You made me go and check. LOL

by realterms | 27th Jun 23, 11:42am 1687822975

Upper mountain not so bad for June. But yeah not great. SI pretty ugly at this stage too.

by Hamish | 27th Jun 23, 12:11pm 1687824708

Possibly the only people that will be skiing there this year will be the fit ones who get up high under their own steam. If they know how to read and manage avalanche risks of course.

by Warwick D | 27th Jun 23, 11:38am 1687822715

Yes, flew over Ruapehu yesterday and I've never seen so little snow cover on it for this time of year. Even if the business had been viable there would never have been a Kings Birthday weekend season start this year. Global warming will make this enterprise an ongoing challenge but, hey, let's just keep our heads in the sand like we do for lots of things these days.

by Roger the lodger | 27th Jun 23, 1:06am 1687784795

Only possible decision by the Minister. Good to see the businesses and jobs are safe for a while at least.

by kiwikidsnz | 27th Jun 23, 11:28am 1687822120

Corporate & Iwi welfare sucking on other peoples money...another zombie awaiting execution

by Northlander09 | 27th Jun 23, 8:32am 1687811565

So is the money going to be used to open the parks and fund actual operations, or "allow time for liquidators to make a decision on the company's future"? I am all for spending the money on operations, but not for it to be directed to the bank accounts of accountants and consultants.

by solardb | 27th Jun 23, 9:02am 1687813376

Haven't you realised, its only a problem if its going to Iwi . The existing gravy train is fine.

by colonel_macloed | 27th Jun 23, 9:14am 1687814063

This is certainly interesting to watch play out. I get the feeling it's throwing more good money at a bad investment. All things being equal it appears to be a political rescue mission rather than a true effort at finding a sustainable structure. It seems a little too convenient to blame covid and our horrific recent weather for the insolvency. I'm not convinced that the proposed mishmash of stakeholders is going to result in a workable and sustainable long term enterprise. That's not a knock on Iwi governance because it appeared to me the government is intent on flexing through their preferred solution no matter what.

Good luck to everyone though I certainly want to see a good result. Personally I do my skiing in British Columbia but I'm from there so the bias is strong.

by Hamish | 27th Jun 23, 9:24am 1687814697

Didn't the PGF already put money in?

by The Person | 27th Jun 23, 10:11am 1687817518

The govt can throw all the money they want at it, but without snow, there ain't gonna be no ski season.

by solardb | 27th Jun 23, 7:34pm 1687851243

There are alot of other activities as well. I think they run a sight seeing trip up to the top too.

by Cheetahlegs66 | 27th Jun 23, 10:35am 1687818938

Is the P/L statement for the business over the last 5-years easily accessible? Was COVID-19 the real killer or was it a marginal business at best?

Does $5m liken to giving a gambler some extra cash so they can spin the wheels for another week?

by Nzdan | 27th Jun 23, 11:08am 1687820918

Quite a lot of share allocation movements 12 months ago according to the companies register. Probably normal?

by sit23 | 27th Jun 23, 12:54pm 1687827248

The outfit has been run by a bunch of incompetents for years. The money will go to the receivers, consultants, existing creditors and of course, the IRD. Then what? Another 5 mill?

by Northlander09 | 27th Jun 23, 1:32pm 1687829571

My concern also. They need checks and balances to ensure this money pays for working staff on the ground, fuel, power and machinery. It should not touch the pockets of any of their wanna be execs/managers who probably pay themselves $500K a year for running the place into the ground.

by sit23 | 27th Jun 23, 1:07pm 1687828055

The outfit has been run by a bunch of incompetents for years. The money will go to the receivers, consultants, existing creditors and of course, the IRD. Then what? Another 5 mill?