Labour government props up North Island ski season

PHOTO: Skiers on a chairlift at Turoa ski field, on Ruapehu Photo: RNZ

The government has committed to providing up to $5 million to the liquidators of Ruapehu Alpine Lifts in order to ensure that the ski season for 2023 can proceed. After a deadlock in the vote to determine the new owners of the ski-fields, the company was officially put into liquidation last week.

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Regional Development Minister Kiri Allan stated that this funding would grant the liquidators sufficient time to determine the buyers for the business and its assets. Additionally, the government was contemplating another expression of interest from Te Ariki Tā Tumu Te Heuheu, acting on behalf of Tūwharetoa, to take over ski operations on the mountain, alongside the existing bids from Whakapapa Holdings and Pure Tūroa.

Previously, the government had declared that it would not offer further financial assistance. However, Acting Prime Minister Carmel Sepluoni, addressing the media after the weekly Cabinet meeting with Chris Hipkins in China, explained that the government was intervening because no one else was willing to do so. She emphasized the importance of enabling access for New Zealanders and expressed the intention to find a long-term solution.

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The government’s intervention aimed to sustain operations until a more permanent resolution could be found, with the funds not being directly allocated to life pass holders, clarified Sepuloni. Given the potential impact of climate change on the mountain’s viability as a ski field in the future, she suggested that operators in the region would contemplate alternative approaches. Sepuloni acknowledged the need to prioritize mitigating climate change risks but also considered the potential utilization of the remaining valuable resources in the area.

Ruapehu holds significant economic importance in the central North Island, contributing around $100 million annually to the region’s GDP, which accounts for approximately one-tenth of its productivity, according to Allan. She emphasized that the final decision regarding the sale rests with the liquidator. The government is currently evaluating the three bids for government support and has requested the Ministry of Business, Innovation and Employment (MBIE) to engage with the bidders to determine the optimal outcome for RAL’s creditors, the Crown, the local economy, and the community.

SOURCE: RNZ