Government bails out Ruapehu Alpine Lifts again to tune of $7m

The operator of the Whakapapa skifield has received another Government bailout, but Regional Development Minister Shane Jones insists it is the last one.

Cabinet has agreed to provide $7 million of financial support to Ruapehu Alpine Lifts (RAL).

It also pledged to provide $3.05m in equity and loan funding to enable the sale of the Tūroa skifield assets to Pure Tūroa Ltd (PTL), a company owned by property developer Cam Robertson and businessman Greg Hickman.

For the last 17 months the insolvent, not-for-profit operator RAL has been kept afloat with $20m of taxpayer money.

The Government is bailing out Ruapehu Alpine Lifts for one last time. Photo / NZME

Jones said the move would provide more certainty for Tūroa, adding: “The Government cannot indefinitely sustain the skifields. That is why Cabinet is signalling a clear end point. If no acceptable commercially led solution can be found within the next year, there will be no additional government funding for RAL’s Whakapapa ski operations.”

Jones said the 2024 ski season would be able to go ahead on both sides of Mount Ruapehu, which contributes significantly to the central North Island economy.

“Snow tourism is a large employer in the region, supporting an estimated 880 fulltime-equivalent jobs and a regional visitor spend of about $100m each year,” he said.

The agreement for the Government to provide PTL with $3.05m to buy Tūroa’s skifield assets relies on the company obtaining a concession from the Department of Conservation.

“The concession process for Tūroa skifield is under way. If the concession is granted, PTL will operate Tūroa skifield commercially,” Conservation Minister Tama Potaka said.

In February, receivers and liquidators for RAL faced an urgent application from a group of people owed money by the operator.

The skifields have been subject to insolvency processes since October 2022.

The lawyer for the receivers, David Friar, told the High Court at Auckland that about a million dollars was at stake and that money was needed.

But the receivers and liquidators for RAL argued that if the liquidators are paying anyone, it would be the Crown because it has a security arrangement and therefore is first in line.

One of the largest creditors is Crown Regional Holdings, which is owed about $42m.