8 February 2024
Ref: DOIA 2324-1485, DOIA 2324-1529
Stephen Prendergast
Email:
[email address]
[FYI request #25436 email]
Tēnā koe Stephen Prendergast
Thank you for your request of 17 January 2024, to the Ministry of Business, Innovation and Employment
(MBIE) requesting, under the Official Information Act 1982 (the Act), the fol owing information:
Can you please supply all the updates since 1 July 2023 provided to Cabinet covering the RAL
liquidation / receivership and sale of assets.
On 18 January 2024 you submitted a request to the Department of Conservation (DoC) for:
Al material provided as a cabinet update covering the RAL liquidation / receivership / concession
process since 1 July 2023.
On 24 January 2024, DoC wrote to you to advise you that your request was being transferred to MBIE as
the information you requested was not held by Doc but held by MBIE.
Please find enclosed the below documents that are within scope of both your requests:
Date
Type
Title
Decision
CAB-23-SUB-0456: Ruapehu Alpine Lifts Limited (In
2 October 2023 Cabinet paper Liquidation) (RAL) – options for government
Release
support
2 October 2023 Cabinet
CAB-23-MIN-0456 Ruapehu Alpine Lifts Limited (In
minute
Liquidation) (RAL): options for government support Release
Please note some information within these documents have been withheld under the fol owing sections
of the Act:
• 9(2)(a), to protect the privacy of natural persons, including that of deceased natural persons;
• 9(2)(b)(i ), to protect information where the making available of the information would be likely
unreasonably to prejudice the commercial position of the person who supplied or who is the
subject of the information;
• 9(2)(ba)(i), to protect information which is subject to an obligation of confidence or which any
person has been or could be compel ed to provide under the authority of any enactment, where
the making available of the information would be likely to prejudice the supply of similar
information, or information from the same source, and it is in the public interest that such
information should continue to be supplied;
• 9(2)(f)(iv), to maintain the constitutional conventions for the time being which protect the
confidentiality of advice tendered by Ministers of the Crown and officials;
• 9(2)(g)(i), to maintain the effective conduct of public affairs through the free and frank expression
of opinions by or between or to Ministers of the Crown or members of an organisation or officers
and employees of any public service agency or organisation in the course of their duty;
• 9(2)(h), to maintain legal professional privilege;
• 9(2)(i), enable a Minister of the Crown or any public service agency or organisation holding the
information to carry out, without prejudice or disadvantage, commercial activities; and
• 9(2)(j), to enable a Minister of the Crown or any public service agency or organisation holding the
information to carry on, without prejudice or disadvantage, negotiations (including commercial
and industrial negotiations).
I do not consider that the withholding of this information is outweighed by public interest considerations
in making the information available.
Please note al cabinet papers and briefing material before 1 July 2023 that have already been released
are available on the MBIE website. Please note some information contained within these proactively
released documents has been withheld. The material can be accessed at the fol owing
link:
www.mbie.govt.nz/document-
library/search?keywords=ruapehualpinelifts&df=&dt=&submit=Search&sort=desc&start=0
If you wish to discuss any aspect of your request or this response, or if you require any further assistance,
please contact
[email address].
You have the right to seek an investigation and review by the Ombudsman of this decision. Information
about how to make a complaint is available a
t www.ombudsman.parliament.nz or freephone 0800 802
602.
Nāku noa, nā
Tane Dewes
Manager Operations Support and Improvement
Kānoa – Regional Economic Development & Investment Unit
In Confidence
Office of the Minister for Regional Development
Cabinet
Ruapehu Alpine Lifts Limited (In Liquidation) (RAL) – options for
government support
Proposal
1
This paper seeks Cabinet’s agreement to one of the following options regarding
further government support for RAL:
EITHER
1.1
Option 1: Agree to a $7.35 million support package to allow RAL to continue
until March 2024 that includes:
1.1.1
Purchasing ANZ debt to RAL for $1 and move RAL from
liquidation to in receivership;
1.1.2
Providing RAL with a $4.3 million loan to continue operating both
the Tūroa and Whakapapa ski fields until the end of March 2024
;
1.1.3
In-principle agreement to provide $3.05 million of support to the
preferred bidder of the Tūroa ski field (Pure Tūroa Limited (PTL))
to purchase and operate RAL assets on the Tūroa ski field, subject to
being granted a concession, and final Cabinet approval; and
1.1.4
s 9(2)(f)(iv)
OR
1.2
Option 2: No additional funding for RAL; and
1.2.1
Agree to a provision for the Department of Conservation’s (DOC’s)
immediate operational costs relating to the ski fields on Ruapehu,
estimated at up to $3.0 million for 2023/24 and up to $5.0 million in
2024/25.
2
Regardless of the option selected above, this paper seeks Cabinet’s agreement to
increase to the DOC’s tagged contingency agreed by Cabinet in June associated with
Vote Conservation for the removal of redundant infrastructure left by RAL from $4.0
million s 9(2)(i)
.
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Relation to government priorities
3
Regional Economic Development (RED) is a key focus for the Government’s
economic vision of an economy that provides economic security in good times and
bad. Kānoa – Regional Economic Development & Investment Unit (Kānoa) delivers
on RED priorities by providing catalytic investment that directly contributes to the
Government’s strategic economic objectives in alignment with regions’ economic
development priorities.
Executive Summary
4
Since June 2023, a process was undertaken, which was led by RAL’s liquidators, to
seek bids to take over RAL’s assets and/or operations. Of the four bids received, only
one is recommended for Crown support. The bid is for the Tūroa ski field only.
Officials have received a proposal to operate the Whakapapa ski field from
Whakapapa Holdings Limited (WHL) but the level of Crown financial support
required is considered excessive and is not recommended. This means there is no
preferred bids for the Whakapapa ski field on the basis that the terms of the most
promising bid subjects the Crown to an unacceptable level of financial risk.
5
Given the importance of Mount Ruapehu to the local economy and our obligations to
local iwi as Treaty partners, I recommend that Cabinet agree to a $7.35 million
support package to allow RAL to continue operating.
6
The package includes moving RAL from liquidation to in receivership, providing
RAL with a $4.3 million loan to continue operating both the Tūroa and Whakapapa
ski fields until the end of March 2024, and in-principle agreement to provide to $3.05
million of support to the preferred bidder of the Tūroa ski field (PTL) to purchase and
operate RAL assets on the Tūroa ski field, subject to being granted a concession, and
final Cabinet approval.
7
The benefits of this approach is that it provides the Crown with additional control and
optionality over RAL, ensures that both of RAL’s ski fields will continue to operate at
least until March 2024, progress transitionary arrangements for the Tūroa ski field,
and s 9(2)(f)(iv)
8
If no commercial solution is found for the Whakapapa ski field and/or the concession
process for Tūroa ski fields is not completed before March 2024, Ministers will need
to make decisions on s 9(2)(f)(iv)
Background
9
RAL holds DOC concessions and has control of infrastructure that enables it to
operate the Whakapapa and Tūroa ski fields on Mt Ruapehu. RAL entered Voluntary
Administration on 11 October 2022. At the time, RAL owed creditors an estimated
$45 million.
10
On 12 June 2023, Cabinet agreed to a funding package for PTL and WHL to purchase
RAL’s assets and continue operating the ski fields on Mt Ruapehu [CAB-23-MIN-
8bk8x5hvp1 2023-12-21 09:01:15
0240 refers]. The package includes an additional $15.3 million of government
investment from Kānoa’s Regional Strategic Partnership Fund (RSPF). Cabinet also
approved a $1.5 million write off of debts owed to DOC and up to $4 million for
removal of already redundant infrastructure [CAB-23-MIN-0240 refers], subject to
final costings.
11
A watershed meeting of RAL creditors was held on 20 June 2023 to vote on the
company’s future. The meeting resulted in a stalemate. On 21 June 2023, the High
Court ordered that RAL be put into liquidation. This meant that the support deal
agreed to by Cabinet was not progressed. The $15.3 million agreed to be used for PTL
and WHL package is ringfenced in the RSPF and remains available.
12
On 24 July 2023, Cabinet approved a loan of up to $5.0 million to RAL’s liquidators
for the operating costs and commitments for the Whakapapa and Tūroa ski fields for
the 2023 season. $3.0 million of the $5.0 million loan has been drawn down. Cabinet
also agreed the Crown would extend support to Ngāti Tūwharetoa to also enable it to
make an offer to the liquidators to purchase RAL’s assets, if it wished to [CAB-23-
MIN-0276 refers]. To date, the Crown has provided $33.5 million ($28 million
through MBIE and $5.5 million through DOC) of support to RAL to enable the 2023
ski season to go ahead given the importance of the Mt Ruapehu ski fields for the
region.
13
To provide Cabinet with additional flexibility to consider additional options to
support RAL, if required, RED Ministers agreed to ringfence a further $s 9(2)(i)million
s 9(2)(f)(iv)
on 24 August 2023. This brings the total available ringfenced funding
for RAL to $s 9(2)(i)million.
RAL’s liquidators will cease operations if they run out of funding in late 2023
14
Cashflow projections provided to MBIE by RAL’s liquidators indicate that RAL will
run out of funding by the end of November 2023. If a new owner and/or operator is
not determined by then or no further funding is made available, the liquidator will
shut down RAL’s operations.
15
In practice, the liquidators will likely begin the process of selling RAL’s assets shortly
after any decision from Cabinet not to provide further support since RAL’s liquidators
would not have the funds to continue operating beyond November 2023. The process
is likely to start in the middle of October 2023 and could take several months given
the nature of the assets. Partial closure of the ski fields or some facilities (e.g the Sky
Waka) could occur at this point.
16
This means that Cabinet needs to decide whether to continue funding RAL prior to the
2023 New Zealand General Election. If no decision is made, the liquidator will not
have certainty of funding beyond November 2023 and likely begin the process of
liquidating RAL’s assets in the middle of October 2023 with the intention of
concluding any sale before it runs out of funding.
17
The Crown is committed to collective negotiations with the iwi with interests in TNP
(including Ngāti Tūwharetoa, Ngāti Rangi, Te Korowai o Wainuiārua, Ngāti Hāua).
The TNP negotiations are yet to formally commence. However, arising out of the
RAL processes in 2023, the Crown has committed to enter those negotiations with
8bk8x5hvp1 2023-12-21 09:01:15
“some urgency.” Most recently the Minister of Treaty of Waitangi Negotiations and
the Minister of Conservation met with iwi representatives in early September to
discuss the pathway to enter negotiations. s 9(2)(j)
Four bids for RAL’s assets had been received by RAL’s liquidators
18
On 1 September 2023, four bids for RAL’s assets had been received by RAL’s
liquidators from PTL, Tūroa Alpine Limited (TAL), WHL and the Ruapehu Skifields
Stakeholders Association (RSSA). PTL and TAL’s bids are for the Tūroa ski field
only. WHL’s bid is for the Whakapapa ski field. The RSSA’s bid covers both ski
fields.
19
All four bids request some form of Crown support.
Annex One provides an overview
of the proposed bids including a comparison between their pre-liquidation and post-
liquidation bids.
20
A concession to operate each of the ski fields on Tūroa and Whakapapa is required
under the Conservation Act 1987. Any successful bidders would still need to apply to
DOC for the necessary leases, licences and easements (collectively described as a
concession).
21
The process would be a public notified application which is open to public
submissions. Given statutory notification periods, requirement for hearings and
consultation, the process would take a minimum of four months. Ultimately the
decision to decline or grant an application and what conditions may be imposed rests
solely with the Minister of Conservation (or delegate).
MBIE officials have identified one bid that is suitable for Crown support
22
PTL’s bid has requested $3.05 million in Crown funding to operate the Tūroa ski
field. MBIE considers the bid to be commercially viable and recommends that it is
suitable for Crown support. The benefits and risks of progressing this bid are outlined
later in this paper. TAL’s bid for the Tūroa ski field had some attractive qualities, but
ultimately is not recommended due to less desirable loan and capital requirements.
23
The bid from WHL for the Whakapapa ski field has increased its request for Crown
funding from approximately $s m
(2)(b
illion pre-liquidation to $ millio
s 9(2)(ba
n. MBIE
understands that the rationale for the increase in the bid was partially based on WHL
anticipating that if the Crown was going to pay liquidators to continue to run RAL
until July 2023, WHL should receive the same amount of funding as part of their bid
to take over the Whakapapa ski field in March.
24
Additionally, on top of their request for $s 9(2)(ba)(i) million of funding, WHL has asked for
a Crown underwrite for their cash balance will be no less than $s 9(2)(ba)(i) million at
October 2025. The underwrite would move a lot of the commercial risk from WHL to
the Crown without any cap on the exposure.
25
The Crown could end up exposed to millions of dollars if it agreed to the underwrite.
MBIE considers WHL’s bid exposes the Crown to an unacceptable level of financial
8bk8x5hvp1 2023-12-21 09:01:15
risk as well as representing poor value for money. MBIE recommends that the bid
should not be progressed in its current form.
26
RSSA submitted a bid to RAL’s liquidators to purchase RAL’s assets in both fields
but did not formally submit a request for Crown support. MBIE has assessed their
proposal for government support in the interest of completeness. The RSSA bid is not
materially different from the commercial business case that was proposed in June
2023. Despite MBIE outlining its concerns with the proposals in writing in July 2023,
the RSSA has not amended its bid.
27
MBIE does not consider the RSSA’s bid to have sufficient ski-field management
experience or a commercial model that is viable over the long term. This reduces any
confidence in its ability to be sustainable over the long term. Furthermore, the RSSA
is requesting that RAL be taken out of liquidation and continue to run in its existing
concession. Based on our conversation with iwi, confirmation of the current RAL
concession would not be acceptable. On this basis, MBIE does not recommend
providing government support to the RSSA’s bid.
28
MBIE’s assessment is there is one preferred bid for the Tūroa ski field and no suitable
bids for the Whakapapa ski field.
Ngāti Tūwharetoa has advised officials that they will not bid for RAL’s assets
or support a private commercial tender for the purchase of RAL’s assets
29
A bid was anticipated from Te Ariki Tumu Te Heuheu on behalf of Ngāti
Tūwharetoa. However, on 31 August 2023, Ngāti Tūwharetoa wrote to Ministers and
officials to advise that they will not bid for RAL’s assets, do not support a private
commercial tender for the purchase of Ruapehu Alpine Lifts and prefer working with
the Crown to develop an acceptable transition plan that would operate until the
successful conclusion of the TNP settlement negotiations.
30
In their letter, Ngāti Tūwharetoa state that they do “…not support progression of the
sale of assets. While the Crown may choose to pursue the track it has to date, we
would prefer the Crown work with us to develop an acceptable transition plan that
would operate until the successful conclusion of the TNP settlement negotiations. If
our non-legal options are exhausted we will seek a comprehensive, evidence-based
discovery process to identify and quantify the impact of the Crown’s preferred
solution(s).”
31
Ngāti Tūwharetoa state in their letter that they s 9(2)(ba)(i)
A lack of support from iwi would impact any future concessions process
32
DOC could receive an application for a concession at any time irrespective of support
from iwi, the liquidator’s approval of a specific bid, or Cabinet processes.
33
No matter its provenance, processing any concession application will be complex. It
requires significant engagement with all iwi with interests in the maunga, including
Ngāti Tūwharetoa, and that public submissions are invited and considered. The
8bk8x5hvp1 2023-12-21 09:01:15
expected level of interest in the concession(s) means that it would be highly likely that
DOC would need to convene public hearings following notification.
34
When making decisions on any concession application, the Crown must give effect to
the principles of the Treaty of Waitangi, including ensuring it is informed of, and
understands, the views and interests of all iwi, hapu, whanau and Māori representative
groups with an interest in the ski field areas.
35
Several iwi have interests in Ruapehu maunga, through their whakapapa (genealogical
connections) and consider the maunga as their tupuna (ancestor). Different iwi are
likely to hold different views on continuing ski field operations on one or both sides
of the maunga, and these views would need to be carefully considered before making
a decision on any concession application to operate the ski fields. It is also important
that iwi are given sufficient time and meaningful information to form their final views
on any proposals Cabinet might consider.
36
s 9(2)(ba)(i), s 9(2)(f)(iv), s 9(2)(g)(i)
37
Notwithstanding the importance of the views of iwi, and those of stakeholders and the
public, the decision to decline or grant an application and what conditions may be
imposed rests solely with the Minister of Conservation (or delegate). There is no right
of veto for any party.
38
Any delay in selecting preferred bidder(s) would also have implications for the
concessions process. Prior to receiving the bids at the end of August, it was expected
that concession applications would be received in early October and, if the process ran
smoothly could be completed in four months, meaning a decision made in February
2024.
39
Until a concession application or applications are received, DOC cannot provide a
timeframe or indication of the likelihood that a concession could be issued to a new
commercial operator(s) ahead of the 2024 ski season (potential operators have
suggested that a decision would need to be made by early 2024 to give them time to
prepare for the forthcoming season).
MBIE’s engagement with local iwi indicate that there may be a pathway forward for RAL
40
Regarding the potential sale and operation of the ski fields on Mount Ruapehu,
several iwi have interests in the maunga, through their whakapapa (genealogical
connections) and consider the maunga as their tupuna (ancestor). In relation to the
sale of RAL assets, Kānoa have engaged with the following iwi who have interests in
the maunga:
• Ngāti Rangi, whose Deed of Settlement was signed in 2018. Ngāti Rangi have
an existing relationship agreement with RAL over the Tūroa ski area.
• Ngāti Tūwharetoa, whose Deed of Settlement was signed in 2017. Ngāti
Tūwharetoa have an existing relationship agreement with RAL over the
8bk8x5hvp1 2023-12-21 09:01:15
Whakapapa ski field. This agreement included the establishment of Te Pae
maunga as a joint approach to management of the ski field on the maunga.
• Ngāti Uenuku, through Te Korowai o Wainuiarua. Their Deed of Settlement
was signed in July 2023. For the purposes of this issue, Te Korowai o
Wainuiārua also represents the interests of Patutokotoko, whose views were
also canvassed through the engagement process. They do not have a
relationship agreement in place with RAL
• Ngāti Hāua, who are currently negotiating their Treaty Settlement with Te
Arawhiti. They do not have a relationship agreement in place with RALNgā
Tāngata Tiaki o Whanganui, the post settlement governance entity for
Whanganui iwi for the purpose of the Whanganui River Settlement.
41
MBIE officials have engaged with iwi through phone conversations, in person
meetings, and correspondence, which is detailed in
Annex Two. MBIE acknowledges
that there has been challenges with the engagement process due to commercial
confidentiality, lack of visibility over the Liquidators’ process and compressed
timeframes with multiple stakeholders involved. However, agreed engagement
commitments were met which included sharing the commercial proposals and bids
with iwi, as well as ensuring iwi were informed about the proposed options for this
cabinet paper and had an opportunity to provide their feedback.
42
Through these engagements two common themes have emerged:
42.1 Iwi have highlighted concerns with the engagement process, short timeframes,
and risk that s 9(2)(b)(ii), s 9(2)(j)
42.2 Despite these concerns, iwi have indicated that they want the ski fields to
continue operating while longer-term matters are resolved to ensure economic
stability in the area.
43
MBIE canvassed iwi views on two key matters:
43.1 Do they support moving RAL into receivership?; and
43.2 Do they support the PTL bid for the Tūroa ski field, including if a short term
concession is secured with a 3 year right of review?
44
Table One provides a summary of the views canvassed with iwi and provided to
MBIE:
Table One: Iwi views provided to MBIE through consultation
Iwi
Views on Proposed options
Tūwharetoa
s 9(2)(ba)(i)
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s 9(2)(ba)(i)
Ngāti Rangi
s 9(2)(ba)(i)
Uenuku
s 9(2)(ba)(i)
Patutokotoko
s 9(2)(ba)(i)
Ngati Hāua
s 9(2)(ba)(i)
Ngā Tāngata Tiaki o
s 9(2)(ba)(i)
Whanganui
45
MBIE’s consultation has found that there are clearly a range of views from iwi.
45.1 s 9(2)(ba)(i)
45.2 s 9(2)(ba)(i)
8bk8x5hvp1 2023-12-21 09:01:15
45.3 s 9(2)(ba)(i)
45.4 s 9(2)(ba)(i)
45.5 s 9(2)(ba)(i)
Cabinet has a choice between continuing to provide support for RAL to
continue operations or to withdraw funding from RAL
46
While it is ultimately up to RAL’s liquidators to make final decisions relating to the
bids they have received, their decision is heavily influenced by decisions made by the
Crown. Not only does the Crown’s influence come from the liquidators’ obligation to
act in the Crown’s interest as one of the major secured creditors of RAL, any decision
for the Crown to support a bid will play a significant role in the liquidators’ final
decision to proceed with a bid.
47
Officials have developed the following options for Cabinet’s consideration:
EITHER
47.1 Option 1: Agree to a $7.35 million support package to allow RAL to continue
until March 2024 that includes:
47.1.1 Purchasing ANZ debt to RAL for $1 and move RAL from
liquidation to in receivership;
47.1.2 Providing RAL with a $4.3 million loan to continue operating both
the Tūroa and Whakapapa ski fields until the end of March 2024
;
47.1.3 In-principle agreement to provide to $3.05 million of support to the
preferred bidder of the Tūroa ski field (PTL) to purchase and
operate RAL assets on the Tūroa ski field, subject to being granted a
concession, and final Cabinet approval; and
47.1.4 Directing MBIE officials to provide advice to the Minister of
Regional Development on options to continue operating the
Whakapapa ski field after March 2023, if required.
OR
47.2 Option 2: No additional further funding for RAL; and
47.2.1 Agree to a provision for DOC’s immediate operational costs relating
to the ski fields on Ruapehu, estimated at up to $3.0 million for
2023/24 and up to $5.0 million in 2024/25.
48
Regardless of the option selected above, I recommend that Cabinet agree to increase
DOC’s tagged contingency agreed by Cabinet [CAB-23-MIN-0240 refers] in June
8bk8x5hvp1 2023-12-21 09:01:15
associated with Vote Conservation for the removal of redundant infrastructure left by
RAL from $4.0 million s 9(2)(i)
49
I recommend that Cabinet agree to option one as it meets the objectives of the
framework for decision making below by striking a balance between additional local
iwi desire to keep the ski fields operating as a transitional arrangement, costs to the
Crown, an increased probability of maintaining economic stability and jobs in the
local economy, and provides an interim solution that does not bind the government to
any further decisions.
DOC requires additional funding regardless of the options selected
50
Irrespective of the options chosen below, the Crown has already committed to writing
off bad debt to DOC and accepting the obligation to remove what may in the future
become redundant infrastructure [CAB-23-MIN-0240 refers]. That obligations rests
with RAL under its current concessions. RAL’s financial position means it cannot
meet those obligations. RAL’s end of concession liability is estimated at $47 million
to $88 million.
51
In RAL’s absence, and assuming no new operators intervene, the Crown would be
expected to take steps towards removing redundant structures. There is considerable
uncertainty as to when removal would need to occur and how much infrastructure
would need to be removed. These matters are likely to be influenced by factors such
as the outcome of Treaty settlements in respect of the TNP, the review of the current
TNP Management Plan, the views of iwi and whether new uses of existing
infrastructure can be found.
52
The liability for already redundant infrastructure was estimated at $4 million, a sum
approved by Cabinet on 12 June [CAB-23-MIN-0240 refers]. s 9(2)(i)
Framework for government decision making
53
I consider that supporting the local economy around Mt Ruapehu, and fulfilling our
commitments as an honourable Treaty Partner to be critical decision-making pillars
for the government’s approach to RAL.
54
I consider that Adventure tourism on the maunga is critical to the economic future of
the central North Island which otherwise faces substantial economic challenges.
Options decided now need to ensure the prosperity and wellbeing of people and the
environment of the Central North Island for the long-term.
55
Iwi have deep and longstanding connections to the maunga, viewing it as an ancestor,
and have strong rights and interests relating to any activity on the maunga
8bk8x5hvp1 2023-12-21 09:01:15
Option 1: Agree to a $7.35 mil ion support package to al ow RAL to continue
until March 2024
56
I recommend that Cabinet agree to Option 1. Option 1 seeks to reconcile continuing
economic support through adventure tourism on the maunga with the need to ensure
the Crown understands and makes appropriate decisions in light of the iwi interests in
this complex scenario. It has different implications for each of the Tūroa and
Whakapapa ski fields. Moving RAL into receivership means that the Crown can fund
the operation of one or both ski fields as long as it has the funding to do so.
57
It also provides an opportunity to progress a transfer of the Tūroa ski field to a
commercial operator, pending robust iwi consultation and the DOC concession
process.
58
For the Whakapapa ski field, s 9(2)(f)(iv)
59
s 9(2)(f)(iv)
60
The feedback MBIE has received from consultation with local iwi suggests there are a
range of views on the future of the ski fields on Mt Ruapehu that need to be
considered. Iwi and hapu views are not homogenous and time is required for these
views to be fully explored and understood.
Understanding iwi views on possible options to continue to operate the Whakapapa ski field
61
MBIE has not recommended either bid from WHL and the RSSA be progressed for
the Whakapapa ski field. However, I consider that it is prudent to ensure that
Whakapapa continues to operate while its future is determined.
62
Providing funding to continue operating RAL in receivership will provide officials
with time to understand iwi views on the Ruapehu ski fields sand how RAL could be
operated as part of a transition plan.
63
MBIE officials will provide advice to the Minister of Finance and the Minister of
Regional Development in November 2023 on s 9(2)(f)(iv), s 9(2)(i)
There is a pathway for the Tūroa ski field to be moved out of Crown-funded operation
64
Option 1 allows PTL, with the knowledge of in-principle government support, to
apply for a concession to operate the Tūroa ski field. This means that PTL, iwi, hapu,
8bk8x5hvp1 2023-12-21 09:01:15
and DOC can work directly on solution that is mutually agreeable, which could
include short term (less than 10 year) concessions. If a concession was granted,
RAL’s Tūroa assets and operations would be transferred to PTL.
65
If PTL are unable to start the concession process shortly, it’s possible that a
concession would not be granted in time to prepare for the 2024 ski season. Starting
the concession process as soon as possible makes the bid more commercially
attractive.
66
Additionally, allowing RAL to continue operating while PTL applies for a concession
would help provide some certainty to the employees who work in the Tūroa ski field,
and businesses in Ohakune on the future of the Tūroa ski field. This is likely to assist
with maintaining staff who otherwise may consider leaving if they do not have job
security for the 2024 ski season and beyond.
67
If PTL is unable to obtain a concession, s 9(2)(f)(iv), s 9(2)(j)
Moving RAL out of liquidation and into receivership provides the Crown with greater
optionality and control
68
It was not intended that RAL continue to operate for a prolonged period under
liquidation. Entities can only trade under liquidation if there is the prospect of a sale.
On that basis, Kānoa has considered four alternative commercial structures for RAL’s
continued operations – maintaining RAL’s liquidators, moving RAL into
receivership, reconstituting RAL, and Crown ownership.
69
As an interim measure, moving RAL out of liquidation and into receivership is
preferred because it has several advantages including:
69.1
Greater control and flexibility for the Crown: Currently, RAL’s liquidators
makes the final decision in relation to RAL’s operation. Greater control over
RAL (through a Crown-appointed receiver) will enable the government to
provide greater certainty to those impacted by its potential closure.
69.2 Ability to continue to run RAL over the medium term: receivership
provides options for the Crown to continue to operate over the medium term if
Ministers expect to continue to fund RAL’s operations.
69.3
Maintains the existing concessions: avoids the need to undertake a new
concession process, which could be prolonged or subject to legal challenges.
70
The options for alternative commercial arrangements mentioned above were
considered but were deemed to be to complex, impractical, or expensive when
compared to receivership. If Cabinet does not agree to move RAL into receivership,
RAL will remain in liquidation.
71
To move RAL into receivership, Kānoa, through Crown Regional Holdings Limited
(CRHL) would purchase, for $1, ANZ’s security interest associated with $15 million
of debt, making the Crown the majority secured creditor. It would then appoint
8bk8x5hvp1 2023-12-21 09:01:15
financial and business advisory group Calibre Partners to be the receiver. This process
is expected to take less than two weeks.
72
Transfer from the liquidators to the receivers would take place in mid to late October,
which is when the ski season is expected to end, since receivership creates
employment challenges for RAL employees. New employment contracts would be
sent to staff.
73
s 9(2)(f)(iv)
Moving RAL into receivership may not alleviate possible staff retention issues
74
The most significant risk in moving RAL into receivership is staff retention. Staff are
less likely to want to continue to remain with RAL if they are unsure of their job
stability. Without confirmation that RAL will continue to the next ski season starting
around June 2024, staff may decide to seek other employment opportunities making it
extremely difficult to continue to operate the ski fields without skilled staff. However,
this risk is present in any commercial structure to run RAL’s operations over the short
term.
Providing $4.3 million of additional funding to RAL to continue operations until the end of
March 2024
75
Regardless of whether a bid for RAL’s assets is supported or not, Cabinet still needs
to decide to continue to fund RAL because even if a bid is supported, it will take some
time for the bidder to apply for a concession (and the outcome of the concession
process is currently unknown).
76
With RAL’s funding expected to be depleted by the end of November, providing a
$4.3 million loan from the RSPF to allow RAL to continue operating both ski fields
until the end of March 2024 is likely to provide some reassurance to stakeholders and
local communities who rely on the ski fields as an economic support.
77
Continued funding would also indicate our commitment to an enduring relationship
with the iwi and hapu with interests in Mount Ruapehu by providing additional time
to work with them on the future of RAL in the context of the TNP Treaty
negotiations.
78
It is unlikely that the $4.3 million loan would be recoverable in the event of an early
2024 decision to withdraw support. The remaining $s 9(2)(j) million (out of $s 9(2)(j)
million) of ringfenced funding would remain in the RSPF until Cabinet makes
decision on the future of RAL.
There are benefits of continuing to support RAL
The primary benefit of supporting RAL is it allows it to continue as an important cornerstone
in the Ruapehu regional economy
8bk8x5hvp1 2023-12-21 09:01:15
79
An analysis by economic consultancy Infometrics found that RAL accounts for 5 per
cent of the Ruapehu region’s jobs and is a key part of the wider tourism sector that
contributed $99 million per annum to the local Ruapehu economy.
80
While officials have insufficient information to determine RAL’s specific
contribution to the local economy, it is likely to be a significant portion given the
important role of the ski fields attracting visitors to the area. Providing funding to
allow RAL to continue operating is likely to prevent job losses and reduce the chances
of an economic contraction in the Ruapehu areas.
81
DOC has faced unfunded operational costs following the closure of the Chateau
Tongariro in Febr
uary 2023. s 9(2)(j)
The building condition of the Chateau is currently
under assessment , but it is otherwise available for future potential uses. s 9(2)(i)
82
Continued funding of RAL has the benefit of ensuring continued occupation of houses
within Whakapapa Village and the contribution that makes to the sense of community
for residents. Alternatively, houses vacated by RAL staff will add to impacts already
being felt from the 25 Chateau buildings being abandoned, returned to DOC
management (subject to a condition assessment), potentially unable to be occupied.
Not supporting RAL would mean that the Crown would incur the cost of securing the ski
fields and the obligation to ‘make good’ the mountain by returning it to its natural state
earlier
83
There are substantial costs that would fall on DOC in this situation. Whakapapa
sewerage, water supply and other services, are dependent on RAL for funding
contributions which along with concessions revenue amount to almost $900,000
annually. The utility costs, at least, would need to continue to be funded with the
Department already covering shortfalls from the closure of the Chateau Tongariro.
84
Operationally, the sewerage treatment plant in Whakapapa Village serves the
Whakapapa ski fields, plus ski clubs and accommodation in the Whakapapa and
Iwikau Villages. It is designed for volume from accommodation and ski fields in
operation and needs to remain operational. If the ski fields are no longer operational
the sewerage system would need to be redesigned so it is fit for the scale of demand
and functions appropriately.
85
Both fields require electricity, even in a closed state, to operate eruption warning
systems, hazardous chemical storage and other equipment essential to maintain public
safety. RAL’s 2021 power bill was $s 9(2)(ba)(million. The charge is based on a line
capacity rating so does not change substantially even where the current usage is low.
86
Safety of the sites, which have multiple hazards including chemicals, avalanche and
lahar risks and potential for collapse of structures in heavy icing or wind situations, is
a priority. Staff at site have made some early contingency plans to cover this
eventuality but are aware they have neither funding nor personnel to step in at short
notice.
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87
If there is a desire to keep open the option of having ski fields operating in the longer-
term, maintenance of the ski field structures will be required to keep them safe and to
permit them to be re-started in future (de-icing for instance). Even if the equipment is
to be permanently retired there would need to be some work to render it safe in the
interim.
88
If Cabinet decided to cease funding RAL, DOC would seek dedicated funding to
cover ongoing associated operational costs. These costs could not be met from within
baselines without reducing significantly core services. It is estimated DOC would
need up to $s ( million in the current fiscal year and a further $s 9( million for the
subsequent fiscal year or years.
89
In the longer term, assuming no new operator is prepared to take on RAL’s
obligations to rein
state the land the Crown would be left to deal with redundant
infrastructure [CAB-23-MIN-0240 refers]. It is estimated that the cost of removing all
existing infrastructure and reinstating the land is $47 million to $88 million. When
and whether these costs crystalise depends on a range of factors. For instance, any
commitments made through TNP Treaty settlements and/or amendments to the
current TNP Management Pan.
90
There may be complications relating to the Sky Waka gondola that operates on Mt
Ruapehu. Further work is required to understand the implications on the Sky Waka is
RAL ceases to exist.
s 9(2)(f)(iv), s 9(2)(j)
91
s 9(2)(f)(iv), s 9(2)(j)
However, continued support for RAL comes with a level of risk and uncertainty
92
Cabinet may prefer option 2 – not providing any further funding for RAL (as outlined
later in the paper) over options 1 due to the following risks.
Concession process may be complicated for both the Tūroa and Whakapapa ski fields
93
Based on recent correspondence, s 9(2)(ba)(i)
his could potentially put the Iwi-Crown relationship under
considerable strain.
94
We cannot prejudge the outcome of the concession process. As noted elsewhere, it
will involve public consultation and engagement with affected Treaty partners. The
increased likelihood that if the preferred bidder applied for a concession, the process
may be complicated and prolonged. s 9(2)(i), s 9(2)(j)
8bk8x5hvp1 2023-12-21 09:01:15
s 9(2)(i), s 9(2)(j)
95
s 9(2)(h)
96
s 9(2)(f)(iv)
Piecemeal funding decisions could be viewed as poor value for money and do not provide
sufficient certainty for the regions employees and businesses
97
The temporary nature of the support provided in option 1 may not be sufficient to
provide certainty to employees and businesses who rely on the ski fields. Providing
funding until March 2024 does not guarantee that the ski fields will continue to
operate during the 2024 ski season. As a result, signing contracts with staff for the
2024 ski season, which usually takes place at the beginning of the year, may be
difficult.
It is inefficient and costly for the government to continue incurring the cost of running the ski
fields
98
The total cost to continue running RAL from the end of November 2023 to the end of
May 2024 is estimated to be $ m
s 9(2)(f)(i
illion s 9(2)(f)(iv)
This forecast
assumes the committed balance of the critical maintenance payments ($s 9(2)(f)(iv) million)
and RAL’s internal costs in respect of the project are paid. It assumes the balance of
the current $5 million loan provided by the government earlier in 2023 is fully drawn.
99
Regardless of the commercial model, if the Crown continues to pay to operate the ski
fields over the medium to long term, there is a risk that it could incur both substantial
additional costs and reduced revenue if the ski fields have a drop in patronage due to a
poor ski season or a more significant event such as a natural disaster. There is also the
risk that the Crown is unable to maintain long term operators for the ski fields, which
could result in poor staff retention, and possibly leaving the Crown with a stranded
asset.
Option 2: No additional funding for RAL
100 Under option 2, RAL would not be provided with any further funding. This would
mean that the $
m
s 9(2)(f)(iv), s 9
illion of ringfenced for RAL would become available. MBIE
officials recommend that the funding remain in the RSPF to be reprioritised by
Ministers. As noted throughout this paper, DOC will incur significant costs under this
option.
8bk8x5hvp1 2023-12-21 09:01:15
101 With no further funding it is expected that RAL will likely cease operating in
December 2023. It is anticipated that RAL’s liquidators will commence selling assets,
soon after Cabinet announces its decision, to cover the liquidators’ costs and repay
secured creditors. Selling the assets may take several months.
102 Neither option in this paper is without costs to the Crown. The $s 9(2)(f)(iv), s million of
savings from ringfenced funding for RAL from the RSPS need to be considered
against the ongoing operational costs that would fall to DOC if RAL ceased to exist.
103 If option 2 is agreed to, I propose that Cabinet approve the establishment of a tagged
contingency of $3.0 million per annum for financial years 2023/24 and $5.0 million
for 2024/25, subj ect to the Minister of Conservation providing detailed costings
relating to the management and operation of infrastructure on the Mount Ruapehu ski
fields, while the l onger-term implications of the liquidation are determined.
Next steps
104 If Cabinet agrees to Option 1, MBIE will commence the process to move RAL out of
liquidation and into receivership, including the purchase of ANZ’s debt and the
appointment of a receiver. A loan of $4.3 million with be provided to RAL to
continue operations until March 2024. PTL will be notified that they have received in-
principle support for their bid. It is expected that they will apply for a concession
shortly after.
105 s 9(2)(f)(iv)
106 I intend to announce the outcome of Cabinet’s decision through a press release.
107 s 9(2)(f)(iv)
Cost-of-living Implications
108 There are no direct cost-of-living implications in this paper. However, if RAL ceases
operating and there are job losses in the area, this could exacerbate cost-of-living
pressures on those impacted.
Financial Implications
109 Regardless of the option selected, this paper seeks Cabinet’s agreement to increase to
DOC’s tagged contingency agreed by Cabinet in June associated with Vote
Conservation for the removal of redundant infrastructure left by RAL from $4.0
million s 9(2)(i)
.
8bk8x5hvp1 2023-12-21 09:01:15
110 Under both options the Crown has accepted a liability for a long term ‘make good’ at
an estimated cost of $47 million to $88 million.
111 Option 1: total cost of $7.35 million including:
111.1 Paying $1 to purchase RAL’s debt to ANZ to allow RAL to be moved out of
liquidation and into receivership;
111.2 In-principle agreement to provide to $3.05 million of support to the preferred
bidder (PTL) to purchase and operate RAL assets on the Tūroa ski field,
subject to being granted a concession, and final Cabinet approval; and
111.3 A $4.3 m illion loan to RAL to continue to operate both ski fields until March
2024.
112 Under option 1 $
m
s 9(2)(f)(iv), s 9(
illion would remain in the RSPF until further decisions were
made on the future of RAL.
113 Option 2: No additional funding for RAL that would result in:
113.1 Up to $s 9(2)(f)(iv), s million returned to Crown, but DOC to incur costs estimated at up
to $3.0 million for 2023/24 and up to $5.0 million in 2024/25.
113.2 A provision for DOC’s immediate operational costs relating to the ski fields
on Ruapehu, estimated at up to $3.0 million for 2023/24 and up to $5.0 million
in 2024/25.
114 Treasury comment:
114.1 Estimated costs to run the ski fields beyond March 2024 in the medium (in the
case of Tūroa, depending on the concession process) and long term (in the
case of Whakapapa given the absence of a viable commercial bid) are
unknown at this point, but will be significant. Though we have a relatively
high degree of confidence that the proposed loan will allow for operation until
March 2024 there is still some risk that further funding will be required to
maintain that policy intent, depending on the cashflow over the final stages of
the season.
Legislative Implications
115 There are no legislative implications associated with proposals in this paper.
Impact Analysis
Regulatory Impact Statement
116 A regulatory impact analysis is not required for the proposals in this paper.
Climate Implications of Policy Assessment
117 No climate change implications in this paper.
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Population Implications
118 The Māori workforce in Ruapehu is a considerably larger proportion of the overall
District’s workforce, compared to the national average. In 2021, the Māori workforce
equated to 32% of total employment in Ruapehu District, compared to 13% for the
entire New Zealand workforce.
119 If RAL were to cease operating and no new operator replaced RAL, Māori in the
Ruapehu District may be disproportionately impacted by job losses resulting in the
closure of the ski fields.
Treaty of Waitangi Im
plications
120 Iwi have the longe
st association and connection with the land comprising the national
park, and the associated ski fields, and consider the maunga tupuna (ancestors). Iwi
therefore have strong interests and responsibilities in the ongoing care and protection
of the maunga different to the general public.
121 Iwi also acknowledge the current ski field operations provide training and
employment for their people, and revenue for the local business communities that is
vital to the economy and to the communities of the central plateau. Entities associated
with Ngāti Tūwharetoa and Ngāti Rangi are, for example, key investors in the Sky
Waka on the Whakapapa side of the maunga.
122 Decisions are also taking place in a context where the Crown is committed to
collective negotiations with the iwi with interests in TNP (including Ngāti
Tūwharetoa, Ngāti Rangi, Te Korowai o Wainuiārua, Ngāti Hāua). Those negotiations
have not yet started. Te Arawhiti has advised that the Crown should engage broadly
with all iwi who have interests in the maunga and the TNP as it seeks a solution in
respect of the ski fields.
123 As described above the options described in this paper seek to balance a range of
interests and priorities in a complex scenario with implications for wider economic
stability in the region, and s 9(2)(f)(iv)
124 While there are varying views about the appropriateness of infrastructure remaining
on their ancestors, Kānoa has engaged in good faith with the relevant iwi to ensure
that:
124.1 iwi are informed about the potential outcomes, and the Crown’s preparedness
to remain involved in the ski-fields; and
124.2 the Crown is as well informed as possible by iwi views as it moves to make its
decisions.
Human Rights
125 There are no human rights implications associated with these proposals.
Use of external Resources
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126 External legal and commercial consultants were engaged as part of the development
of this paper, primarily in relation to the assessment of bids and working through the
complexities involved in a potential commercial transaction. Specialised advice was
sought that was not available within MBIE. The policy development and drafting of
this paper was undertaken by salaried MBIE employees.
Consultation
127 The Treasury, Te Arawhiti, Crown Law Office, DOC, and the Department of the
Prime Minister and Cabinet (Policy Advisory Group) have been consulted.
Communications 128 I intend to releas e a statement on the option agreed to by Cabinet.
Proactive Release
129 I intend to proactively release this paper, subject to any redactions necessary to
protect commercial sensitivity or legal privilege of relevant parties, in due course.
Recommendations
The Minister for Regional Development recommends that the Committee:
1
Note that in mid-August 2023, RAL’s liquidators wrote to prospective bidders,
including Ngāti Tūwharetoa, to request that they submit their bid to take over RAL’s
assets and operations by 31 August 2023.
2
Note that four bids were received and requested some form of Crown support.
3
Note that a bid was anticipated from Te Ariki Tā Tumu Te Heuheu on behalf of Ngāti
Tūwharetoa.
4
Note that on 31 August 2023, Ngāti Tūwharetoa wrote to Ministers and officials to
advise that they will not bid for RAL’s assets, do not support a private commercial
tender for the purchase of Ruapehu Alpine Lifts and prefer working with the Crown to
develop an acceptable transition plan that would operate until the successful
conclusion of the TNP settlement negotiations.
5
s 9(2)(f)(iv)
6
Note that RAL will cease operations if it runs out of funding in late 2023.
7
Note that there is $s 9(2)(f)(iv), s million ringfenced in the Regional Strategic Partnership Fund
(RSPF), which is managed by Kānoa, to provide Cabinet with additional flexibility to
consider additional options to support RAL, if required.
8bk8x5hvp1 2023-12-21 09:01:15
8
Agree to increase to the tagged contingency agreed by Cabinet in June associated with
Vote Conservation for the removal of redundant infrastructure left by RAL from $4.0
million to s 9(2)(i)
.
$m – increase/(decrease)
Tagged Contingency
2023/24
2024/25
2025/26
2026/27
2027/28 &
outyears
Removal of redundant
infrastructure on Mt Ruapehu
s 9(2)(b)(i ), s
tagged contingency
-
-
-
-
9
Agree that the ta gged contingency in recommendation 8 above be charged against the
between-Budget contingency established as part of Budget 2023.
10
Agree to establish the following new multi-year appropriation, to run from 1 October
2023 to 30 June 2028
Vote
Appropriation
Appropriation
Title
Type
Scope
Minister
Administrator
Conservation
Minister of
Department of
Mount Ruapehu: Non-
This
Conservation
Conservation
Management
Departmental
appropriation is
and Removal of Output
limited to the
Ski Fields
Expenses Multi- management
Infrastructure
Year
and operation of
Appropriation
infrastructure on
the Mount
Ruapehu ski
fields, and
restoration of
the environment
to its original
state.
11
Note that DOC is currently unfunded for ongoing operational costs for maintaining
the Chateau s 9(2)(i), s 9(2)(j)
12
Note an indicative initial estimate of the liability the cost to the Crown has accepted to
remove redundant infrastructure (‘make good’ contingent liability) is currently $47
million to $88 million;
EITHER
Option 1: Provide a $7.35 million support package to allow RAL to continue until March
2024:
13
Agree in-principle to provide to $3.05 million of support to the preferred bidder (PTL)
to purchase and operate RAL assets on the Tūroa ski field, subject to being granted a
concession, and final Cabinet approval;
14
Agree to move RAL out of liquidation and into receivership.
8bk8x5hvp1 2023-12-21 09:01:15
15
Agree that Kānoa, through Crown Regional Holdings Limited (CRHL) would
purchase for $1 ANZ’s security interest associated with $15 million of debt, making
the Crown the majority secured creditor in RAL.
16
Agree to provide RAL with a $4.3 million loan to continue operating until the end of
March 2024
.
17
Agree that the remaining $
m
s 9(2)(f)(iv), s 9(
illion of ringfenced funding for RAL will remain in
the RSPF until Cabinet makes decisions on the future of RAL.
18
s 9(2)(f)(iv)
19
s 9(2)(f)(iv)
20
Note that there are also risks with option 1, including but not limited to a prolonged
concession process, legal challenges, s 9(2)(f)(iv)
, and the cost to the
Crown to keep running the ski field prior to the completion of any transaction.
21
Note that if no commercial solution is found for the Whakapapa ski field and/or the
concession process for Tūroa ski fields is not completed before March 2024,
Ministers will need to make decisions on whether it continues to fund RAL to allow it
to continue operating past March 2024 once funding runs out.
22
Note that further work is required to understand the long-term implications for the
Whakapapa ski field.
23
Note that as an interim measure, moving RAL out of liquidation and into receivership
is the seen as the preferred option because it provides the Crown with additional
control, certainty, and flexibility.
24
Note that the receivership process is expected to be completed in October and will
have an impact on the current staff working at RAL.
25
Note that the options for alternative commercial arrangements were considered but
were deemed to be to complex, impractical, or expensive when compared to
receivership.
26
Note that if Cabinet does not agree to move RAL into receivership, RAL will remain
in liquidation.
OR
Option 2: No additional further funding for RAL;
27
Agree to not provide RAL with any additional funding.
8bk8x5hvp1 2023-12-21 09:01:15
28
Agree that the $s 9(2)(f)(iv), s million of ringfenced funding for RAL to support a bid and
continued operations be redistributed through the RSPF.
29
Note that it is anticipated that RAL’s liquidators will commence selling assets, soon
after Cabinet announces its decision, to cover the costs and repay secured creditors.
Selling the assets may take several months.
30
Note that significant immediate operational costs would be incurred by DOC,
estimated at up to $3.0 million for 2023/24 and up to $5.0 million in 2024/25, with
further details to be provided in March 2024.
31
Agree, subject to agreement of recommendation 27, to establish a tagged contingency,
associated with V
ote Conservation for the management and operation of infrastructure
on the Mount Rua
pehu ski fields by DOC while the longer-term implications of RAL
are determined:
$m – increase/(decrease)
2023/ 24
2024/ 25
2025/ 26
2026/ 27
2027/28 &
Out-years
Management and operation
3.000
5.000
0.000
0.000
0.000
of infrastructure on the
Mount Ruapehu ski fields
32
Authorise the Minister of Finance and the Minister of Conservation to jointly draw
down on the tagged operating contingency in recommendation 31 above, subject to
the Minister of Conservation providing detailed costings relating to the management
and operation of infrastructure on the Mount Ruapehu ski fields.
33
Agree that the tagged contingency in recommendation 31 above be charged against
the between-Budget contingency established as part of Budget 2023.
34
Agree that the expiry date for the tagged contingency in recommendation 31 will be
30 June 2024.
Authorised for lodgement
Hon Kieran McAnulty
Minister for Regional Development
8bk8x5hvp1 2023-12-21 09:01:15
Annex One: Summary of bids received for Crown support for RAL
Whakapapa
Holdings Ltd
Revised offer post-liquidation
Negotiated position pre-liquidation
Crown
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
funding
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
Pure Tūroa
Ltd
Revised offer post-liquidation
Negotiated position pre-liquidation
Crown
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
funding
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
‒ s 9(2)(ba)(i), s 9(2)(j)
‒ s 9(2)(ba)(i), s 9(2)(j)
‒ s 9(2)(ba)(i), s 9(2)(j)
‒ s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
Tūroa Alpine
Ltd
Revised offer post-liquidation
Negotiated position pre-liquidation
Crown
• s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i), s 9(2)(j)
funding
• s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
RSSA
Revised offer post-liquidation
Negotiated position pre-liquidation
Crown
• s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i), s 9(2)(j)
funding
• s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
• s 9(2)(ba)(i), s 9(2)(j)
8bk8x5hvp1 2023-12-21 09:01:15
RSSA
Revised offer post-liquidation
Negotiated position pre-liquidation
• s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i), s 9(2)(j)
8bk8x5hvp1 2023-12-21 09:01:15
Annex Two: Ministry of Business, Innovation and Employment
(MBIE) engagement with
iwi on Ruapehu Alpine Lifts Limited (In Liquidation) (RAL)
ENGAGEMENTS WITH NGATI TŪWHARETOA
Date
Purpose/Notes
November 2022 MBIE met wit s 9(2)(a)
in their office in Taupo to discuss the current status of
RAL and next steps.
December 2022 On 15 December, MBIE meet with the s 9(2)(a)
to provide an update on the RAL position. A further
upda
te was provided on 20 December. MBIE provided an update to s 9(2)
and s 9(2)(a)
of Te Kotahitanga o Ngāti (a)
Tūw
haretoa (Ngāti Tūwharetoa) and provided a discussion document
regarding the NewCo proposal for their consideration.
January/February On 11 January, MBIE had a call with the s 9(2)(a)
2023
regarding RAL and to provide them with an update. A further
update was provided on 22 February regarding RAL.
March 2023
On 9 March, MBIE chaired a call between s 9(2)(a)
and the former Minister for Regional Development, who provided
reassurance that MBIE will work together with iwi to ensure we work
together to come to a solution for both ski fields on Mt Ruapehu.
April 2023
Phone calls on the 3rd and 17th of April to provide updates to the s 9(2)(a)
May 2023
On 3 May, MBIE provided an update to the s 9(2)(a)
on the RAL proposals.
On 9 May, MBIE attended the Tūwharetoa Ministerial Forum and provided
updates on RAL. In addition, MBIE had a phone call with the s 9(2)
advising they w
(a)ere entering
into negotiations with two parties for the purchase of the Mount Ruapehu
Ski fields. The following day on the 10th, MBIE had a phone call with the
s 9(2)(a)
and followed up with an update on developments
relating to RAL and the Crown’s progress to identify alternative operators of
the ski fields on Mt Ruapehu.
On 11 May, MBIE emailed s 9(2)(a)
, about Ruapehu Alternative Ski Field Operators and
Te Pae Maunga, the licence oversight board.
On 16 May, MBIE had a call with the s 9(2)(a)
to discuss
RAL and to provide them an update.
On 24 May, MBIE had a call with all iwi Chairs to discuss RAL and next
steps with engaging with iwi to find a solution for both ski fields. On 25
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May 2023, MBIE had a call with the s 9(2)(a)
to discuss
RAL and to provide them an update.
June 2023
On 12 June, MBIE, Te Arawhiti and DOC had a hui with all iwi reps to
provide updates on the consultation process to date regarding the transfer of
the DOC concessions to operate the ski fields on Mt Ruapehu. On 13 June
2023, MBIE provided an email to all the iwi chairs with further information
regarding RAL and to provide them all with an update.
From 16 to 19 June, MBIE meet with iwi representatives in the region with
the former Minister for Regional Development, DOC, and Te Arawhiti to
dis cuss best outcomes for iwi and working together with iwi to find a
solution for the mountain.
On 20 June, MBIE had a call with s 9(2)(a)and s 9(2)(a)
from the
s 9(2)(a)
to discuss their interest, on behalf of
Ngāti Tūwharetoa, in acquiring the assets of RAL.
On 22 June, Te Arawhiti, with support from MBIE and DOC, had calls with
all iwi regarding RAL and to provide them all with an update.
On 23 June, MBIE passed on the process letter to Ngāti Tūwharetoa for
their potential bid.
July 2023
On 3 July, MBIE passed on the confidentiality undertaking. On 7 July, Ngāti
Tūwharetoa returned their signed NDA to MBIE.
On 31 July, MBIE had a call with Ngāti Tūwharetoa regarding RAL and to
discuss next steps and options.
August 2023
On 1 August, MBIE contributed to the joint letter update to iwi CEO &
Chairs provided by Te Arawhiti. The following day, 2nd August, MBIE had
a call with s 9(2)(a)
regarding
RAL.
On 14 August, MBIE, Te Arawhiti and DOC provided all iwi CEOs an
update on the current progress of RAL.
On 31 August, s 9(2)(a)
sent a letter to Ministers and
officials to advise that they will not bid for RAL’s assets, do not support a
private commercial tender for the purchase of RAL and prefer working with
the Crown to develop an acceptable transition plan that would operate until
the successful conclusion of the TNP settlement negotiations. A similar
letter was also sent from the Chief Executive of Ngāti Tūwharetoa to MBIE
on 31 August 2023.
September 2023 s 9(2)(ba)(i)
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s 9(2)(ba)(i)
s 9(2)(ba)(i)
On 7 September , MBIE responded to the letter from thes 9(2)(a)
and provided input into the letter from Ministers back to
s 9(2)(a)
, which was sent from the Minister for Regional
Development on 8 September .
ENGAGEMENTS WITH NGATI RANGI
Date
Purpose/Notes
November 2022 On 28 November, s 9(2)(a)
wrote to MBIE setting out expectations as to
ensure Ngāti Rangi remain informed as to progress on RAL. On 29
November, MBIE wrote back to Ngāti Rangi and updated them about
developments in relation to RAL following the meeting of Cabinet the day
prior.
December 2022 On 14 December, MBIE wrote to the s 9(2)(a)
to
update them about the state of progress. Ngāti Rangi gave guidance as to
how Ngāti Rangi would like to move forward and engage with MBIE and
MBIE advised they would be happy to do so.
February 2023
There were several calls to the s 9(2)(a)
in February.
MBIE discussed the areas of interest for Ngāti Rangi on Mt Ruapehu. On 16
February, MBIE had a further phone call with the s 9(2)(a)
about advice in relation to a bidder getting involved in purchasing of
the ski fields. Further calls held on the 17th and 27th of February to provide
further updates.
April 2023
Further phone calls held on the 3rd and 17th of April with the s 9(2)(a)
to provide an update regarding the RAL bids.
May 2023
On 2 May, MBIE had a phone call with the s 9(2)(a)
regarding the Tūroa Alpine Proposal and MBIE asked for their advice on it.
On 9 May, MBIE had a phone call with the s 9(2)(a)
advising they were entering into negotiations with two parties for the
purchase of the Mount Ruapehu Ski fields. The s 9(2)(a)
asked to see the proposals for both the Tūroa and Whakapapa ski
fields. On 11 May 2023, MBIE provided Ngāti Rangi the two proposals and
main sections of the briefing to the former Minister for Regional
Development which summaries MBIE’s evaluation and assessment of the
proposals and provides their recommendation.
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On 23 May, MBIE meet with the s 9(2)(a)
in
Ohakune to discuss RAL and to provide them an update. On 24 May 2023,
MBIE had a call with all iwi Chairs to discuss RAL and next steps with
engaging with iwi to find a solution for both ski fields.
June 2023
On 12 June, MBIE, Te Arawhiti and DOC had a hui with all iwi reps to
provide updates on the consultation process to date regarding the transfer of
the DOC concessions to operate the ski fields on Mt Ruapehu.
On 13 June, MBIE provided an email to all the iwi chairs with further
information regarding RAL and to provide them all with an update.
From 16 to 19 June, MBIE meet with iwi representatives in the region with
the f ormer Minister for Regional Development, DOC, and Te Arawhiti to
discuss best outcomes for iwi and working together with iwi to find a
solution for the mountain.
On 20 June, MBIE provided the s 9(2)(a)
the most
recent redacted Cabinet Paper minutes and RAL Redundant Structure
Database GPS details. On 22 June 2023, Te Arawhiti, with support from
MBIE and DOC, had calls with all iwi regarding RAL and to provide them
all with an update.
July 2023
On 27 July, MBIE provided Ngāti Rangi the Expression of
Interest/proposal’s received from the Whakapapa ski field bidder after its
initial due diligence, summarises of the revised terms negotiated with its
principals, and MBIE also advised they have received a letter from s 9(2)(a)
and s 9(2)(a)
confirming their interest, on behalf of
Ngāti Tūwharetoa, in acquiring the assets of RAL.
August 2023
On 1 August, MBIE contributed to the joint letter update to iwi CEO &
Chairs provided by Te Arawhiti. Also on the 1st August, MBIE had
discussions with the s 9(2)(a)
around the proposed
concession, Tūroa trademark, and GIS map. Te Arawhiti and DOC were also
in attendance.
Updates were provided on the 8th and 23rd of August to Ngāti Rangi. On 14
August MBIE, Te Arawhiti and DOC provided all iwi CEOs an update on
the current progress of RAL.
On 25 August MBIE provided s 9(2)(a)
the
proposed timeframe for the RAL Cabinet paper.
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September 2023 On 7 September MBIE received written correspondence from the Chief
Executive of Ngāti Rangi stating that s 9(2)(ba)(i), s 9(2)(j)
adding that s 9(2)(ba)(i), s 9(2)(j)
Regarding a potential pathway for the sale of assets, the correspondence
stated that s 9(2)(ba)(i), s 9(2)(j)
s 9(2)(ba)(i)
On 7 September, MBIE provided the s 9(2)(a)
the
funding requests and bid proposals from three of the four parties that have
submitted bids (Whakapapa Holdings Limited declined MBIE’s request to
submit their proposal to iwi).
s 9(2)(ba)(i), s 9(2)(j)
ENGAGEMENTS WITH UENUKU, PATUTOKOTOKO
Date
Purpose/Notes
December 2022 On 21 December, MBIE had a call with s 9(2)(a)
and had a discussion around the current situation of RAL.
May 2023
On 16 May, MBIE had a call with the s 9(2)(a)
to discuss RAL and
to provide them an update. A further update was also provided to s 9(2)(a)
to discuss RAL and to provide them an update.
On 20 May, MBIE virtually met the s 9(2)(a)
to
discuss RAL and to provide them an update.
On 24 May, MBIE had a call with all iwi Chairs to discuss RAL and next
steps with engaging with iwi to find a solution for both ski fields.
On 30 May, MBIE had conversations with s 9(2)(a)
about the Tūroa ski field and to provide them an update.
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June 2023
On 12 June, MBIE, Te Arawhiti and DOC had a hui with all iwi reps to
provide updates on the consultation process to date regarding the transfer of
the DOC concessions to operate the ski fields on Mt Ruapehu.
On 13 June, MBIE provided an email to all the iwi chairs with further
information regarding RAL and to provide them all with an update.
From 16 to 19 June, MBIE meet with iwi representatives in the region with
the former Minister for Regional Development, DOC, and Te Arawhiti to
discuss best outcomes for iwi and working together with iwi to find a
solution for the mountain.
On 22 J
une, Te Arawhiti, with support from MBIE and DOC, had calls with
all iw
i regarding RAL and to provide them all with an update.
s 9(2)(b)(ii)
August 2023
On 1 August, MBIE contributed to the joint letter update to iwi CEO &
Chairs provided by Te Arawhiti, and on the 7th of August MBIE attended the
meeting held in Raetihi with Uenuku regarding RAL and to provide them
with an update.
On 14 August, MBIE, Te Arawhiti and DOC provided all iwi CEOs an
update on the current progress of RAL.
September 2023 On 7 September, MBIE contacted the s 9(2)(a)
to provide redacted details of the bids received by RAL’s liquidators. MBIE
discussed the bids and the next steps with Uenuku on 8 September 2023..
MBIE has agreed to give Uenuku the same involvement rights it has given
Ngāti Rangi.
On 13 September, MBIE had a phone call with the s 9(2)(a)
A follow up summary email was sent by MBIE and
this was tabled at their board meeting on 16th of September.
On 14 September, MBIE provided s 9(2)(a)
the
same update given to Ngāti Hauā.
On 21 September, an email was received by MBIE from the s 9(2)(a)
, acknowledging what was tabled at the board meeting
on 16 September 2023 and that he would have their response in writing to
MBIE thereafter.
On 25 September MBIE received a letter from Uenuku with their views on
the options proposed.
On 26 September, a further email was sent to Uenuku offering a further
phone call to seek any clarification or respond to any questions they may
have.
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ENGAGEMENTS WITH NGATI HĀUA
Date
Purpose/Notes
May 2023
On 24 May, MBIE had a call with all iwi Chairs to discuss RAL and next
steps with engaging with iwi to find a solution for both ski fields.
On 25 May, MBIE had a call with s 9(2)(a)
, to discuss RAL and to provide them an update
June 2023
On 12 June, MBIE, Te Arawhiti and DOC had a hui with all iwi reps to
provide updates on the consultation process to date regarding the transfer of
the DOC concessions to operate the ski fields on Mt Ruapehu.
On 13 June, MBIE provided an email to all the iwi chairs with further
infor mation regarding RAL and to provide them all with an update.
On 22 June, Te Arawhiti, with support from MBIE and DOC, had calls with
all iwi regarding RAL and to provide them all with an update.
August 2023
On 1 August, MBIE contributed to the joint letter update to iwi CEO &
Chairs provided by Te Arawhiti. Also, on the 1st of August, MBIE had
discussions with the s 9(2)(a)
on RAL and to provide them an
update. Te Arawhiti and DOC were also in attendance.
On 14 August 2023, MBIE, Te Arawhiti and DOC provided all iwi CEOs an
update on the current progress of RAL.
September 2023 s 9(2)(ba)(i)
On 14 September 2023, MBIE had a call with s 9(2)(a)
to discuss the proposed options. On the 21 September 2023,
Ngāti Hauā came back with additional questions, MBIE provided a response
to those questions on 21 September 2023.
On 26 September, a further email was sent to Ngāti Hāua offering a further
phone call to seek any clarification or respond to any questions they may
have.
On 26 September, MBIE received a letter from the s 9(2)(a)
outlining their views on the proposals.
ENGAGEMENTS WITH NGĀ TĀNGATA TIAKI
Date
Purpose/Notes
September 2023 On 21 September 2023, MBIE had a call with s 9(2)(a)
and gave a verbal update on process. A follow up email
was sent to s 9(2)(a) and her team giving a brief timeline of events until now,
an update on the proposed options for the cabinet paper, as well as an update
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on which iwi have been engaged with to date. An opportunity for further
discussion was provided and we are awaiting a formal response.
On 26 September, a further email was sent to Ngā Tāngata Tiaki offering a
further phone call to seek any clarification or respond to any questions they
may have.
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Document Outline
