New Zealand / Tourism

Ruapehu Alpine Lifts' future still unclear

12:33 pm on 26 April 2023

The Turoa skifield in 2018. Photo: RNZ / Walter Zweifel

The future of the troubled Ruapehu Alpine Lifts company is still up in the air - but whether it reopens this season or closes permanently, it is likely to cost taxpayers.

After a couple of poor seasons and Covid-19 disruption, the company, which ran the Whakapapa and Turoa skifields, went into voluntary administration in October owing tens of millions of dollars.

Voluntary administrator John Fisk from PWC told Nine to Noon he was "optimistic" it would open for business this season but there was a lot of work to do yet.

Kānoa, the government's Regional Economic Development and Investment Unit, is reviewing four bids finalised last week.

Fisk said cabinet would need to sign off on any deal and Kānoa had advised that could not happen before 11 May.

"The problem with that is that we are required to hold a watershed meeting with creditors by 9 May, so because of that we are working this week on an application to the High Court to delay that watershed meeting."

Realistically, the extension would be until the end of the year, although PWC hoped to have a deal for creditors to consider much earlier than that, he said.

Once a front-runner was confirmed and creditors had approved a deal in principal, negotiations could start with the Department of Conservation, iwi and other parties.

Due to the complexities it was unlikely a new operator would be in a position to take over before the winter season.

Skiiers on the Rockgarden at Whakapapa Ski Field, Mt Ruapehu in 2018. Photo: Natalia Catalina / 123RF

Meanwhile, PWC was prepared to operate the skifield as it did with the Turoa business in 2000, Fisk said.

"But we would need an underwrite from government to do that, because don't have the funds to be able to cover any losses that might happen if there are losses, and there would obviously be costs involved in that process.

"Alternatively we could just agree that the company would go into liquidation."

Liquidating the business did not rule out a future sale, "but it does become harder", he said.

Closing the business permanently and handing the land back to the Department of Conservation would also cost taxpayers.

Estimates for removing the lifts and other infrastructure were around $50 million, while ski club buildings would cost at least $30m to demolish.

Even putting the business in "hibernation" would cost significant money, with ongoing maintenance required in the harsh environment.

All in all, there were strong economic arguments for the government to invest in keeping it operating, Fisk said.

Independent analysis showed Ruapehu Alpine Lifts provided about 5 percent of jobs in the district.

"That's the same importance that Tiwai Point is to Southland. It would be an average of about 326 jobs lost if the mountain were to close."

Long-term, it was obvious the business would need to diversify to weather the impact of climate change, he conceded.

"Whether that money comes from shareholders or the government is another complication that needs to be addressed."

Furthermore, there was "divergence of opinion" among iwi over what should happen on the mountain, with arguments about economic development and prosperity pitted against the maunga's sacred status.

"Some believe it shouldn't have activities like skiing on it at all."