20240354 Response to your OIA request.pdf

Reference: 20240354

8 July 2024

Stephen Prendergast
[FYI request #26833 email]

Dear Stephen

Thank you for your Official Information Act request, received on 16 May 2024. You
requested the following:
Please provide key advice and correspondence since 1 October 2023 between
yourself and MBIE and DOC as well as to the Ministers of Finance, Minister of
Regional Development , and the Minster of Conservation on the administration ,
receivership and future liquidation of RAL.
Your request was extended by 15 working days to allow for the necessary
consultations.

Information being released
Please find enclosed the following documents:
Item
Date
Document Description
Proposed Action
1.
25 January 2024
Treasury Report T2024/149: Tūroa and
Release in part
Whakapapa ski fields – briefing on upcoming
Ministerial meeting and decisions
2.
14 February 2024  Email: RAL Updates?
Release in part
3.
15 February 2024  Email: For consultation 14 Feb: Draft Cabinet
Release in part
paper - Decisions to continue support for RAL
post-March 2024
4.
23 February 2024  Ministerial Consultation: Decisions to continue
Release in part
support for RAL post-March 2024
5.
26 February 2024  Aide Memoire T2024/449: Ruapehu Alpine
Release in part
Lifts – Further advice on interim funding
arrangements and the concession process
6.
1 March 2024
Cabinet Paper Briefing: Tūroa and Whakapapa  Release in part
ski fields: proposed options for their future
7.
24 April 2024
Email: Approving a $7 million loan to Ruapehu
Release in part
1 The Terrace
PO Box 3724
Wellington 6140
New Zealand
tel. +64-4-472-2733

https://treasury.govt.nz

Alpine Lifts Limited (in liquidation and
receivership) from the Regional Strategic
Partnership Fund
8.
21 May 2024
Email: Next Steps of the commercial process
Release in part
to sell Ruapehu Alpine Lift Limited's (in
liquidation and Receivership) Whakapapa
business

I have decided to release the documents listed above, subject to information being
withheld under one or more of the following sections of the Official Information Act, as
applicable:
•
names and contact details of officials, under section 9(2)(g)(ii) – to maintain the
effective conduct of public affairs through protecting Ministers, members of
government organisations, officers and employees from improper pressure or
harassment,
•
advice still under consideration, section 9(2)(f)(iv) – to maintain the current
constitutional conventions protecting the confidentiality of advice tendered by
Ministers and officials,
•
free and frank advice, under section 9(2)(g)(i) – to maintain the effective conduct
of public affairs through the free and frank expression of opinions,
•
certain sensitive advice, under section 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,
•
certain sensitive advice, under section 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),
•
commercially sensitive information, under section 9(2)(b)(ii) – to protect the
commercial position of the person who supplied the information, or who is the
subject of the information, and
•
direct  dial  phone  numbers  of  officials,  under  section  9(2)(k)  –  to  prevent  the
disclosure of information for improper gain or improper advantage.
Direct dial phone numbers of officials have been redacted under section 9(2)(k) in
order to reduce the possibility of staff being exposed to phishing, social engineering
and other scams. This is because information released under the OIA may end up in
the public domain, for example, on websites including Treasury’s website.
In making my decision, I have considered the public interest considerations in section
9(1) of the Official Information Act.
Please  note  that  this  letter  (with  your  personal  details  removed)  and  enclosed
documents may be published on the Treasury website.
2

This reply addresses the information you requested. You have the right to ask the
Ombudsman to investigate and review my decision.

Yours sincerely

John Marney
Manager, Regions Enterprise and Economic Development

3

Table of Contents
1.
Treasury Report T2024/149: Tūroa and Whakapapa ski fields – briefing on
1
upcoming Ministerial meeting and decisions
2.
Email: RAL Updates
11
3.
Email: For consultation 14 Feb: Draft Cabinet paper - Decisions to continue
14
support for RAL post-March 2024
4.
Ministeral Consultation - Decisions to continue support for RAL post-March 2024
16
5.
Aide Memoire T2024/449: Ruapehu Alpine Lifts – Further advice on interim
18
funding arrangements and the concession process
6.
Cabinet Paper Briefing: Tūroa and Whakapapa ski fields: proposed options for
21
their future
7.
Email: Approving a $7 million loan to Ruapehu Alpine Lifts Limited (in liquidation
24
and receivership) from the Regional Strategic Partnership Fund
8.
Email: Next Steps of the commercial process to sell Ruapehu Alpine Lift Limited's
28
(in liquidation and Receivership) Whakapapa business

Page 1 of 32
IN-CONFIDENCE

Treasury Report:  Tūroa and Whakapapa ski fields – briefing on upcoming
Ministerial meeting and decisions

Date:
25 January 2024
Report No:
T2024/149
File Number:
SH-11-1-2-M101432
Action sought


Action sought
Deadline
Hon Nicola Willis
Review prior to Ministerial meeting
Prior to your meeting on 31
Minister of Finance
on 31 January 2024
January 24

Contact for telephone discussion (if required)

Name
Position
Telephone
1st Contact
Brock Stobbs
Analyst, Regions
s9(2)(k)
N/A (mob)

Enterprise and
Economic Development
John Marney
Manager, Regions
N/A (mob)

Enterprise and
Economic Development
Minister’s Office actions (if required)

Return the signed report to Treasury.

Page 4 of 32
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Treasury Report: Tūroa and Whakapapa ski fields – briefing on
upcoming Ministerial meeting and decisions

Purpose

1.
This note provides advice about the future of ski field operations at the Tūroa and
Whakapapa ski fields ahead of your meeting on 31 January with the Minister of
Conservation and the Minister for Regional Development. We expect that this meeting
will be a precursor to a Cabinet paper on the future of the ski fields. This decision will
be required before the end of March when the current funding arrangements are
expected to run out.
2.
While further advice will be provided alongside the Cabinet paper, once details are
finalised, we have outlined the key considerations and our recommendations - as we
suggest using this meeting as an opportunity to discuss with your Ministerial colleagues
the options to be presented in the final Cabinet paper. Following the meeting, we wil
then work with MBIE to reflect Ministers’ views into the final Cabinet paper.
Background

3.
Ruapehu Alpine Lifts Limited (RAL) is the owner and operator of the assets of the
Tūroa and Whakapapa ski fields and has concessions from the Department of
Conservation that enable them to operate. RAL entered into voluntary administration on
11 October 2022 with the view to sell ski field assets to new operators to raise money to
deal with all or some of the creditor’s (including the Crown’s) claims for outstanding
debts (estimated at the time to be $45 million).
4.
The Crown provided bridging finance to support continued operations (original y
through the liquidators, now through the receivers) while negotiations with prospective
*s9(2)(f)(iv), 9(2)(i),
operators are completed. Ministers also agreed to ringfence funding from the Regional
and 9(2)(j)
Strategic Partnership Fund (RSPF) to be available for supporting prospective operators,
of which  *
remains. Because RAL is in receivership and the Crown owns the
majority of debt, we have a reasonable degree of control over its future. Additional
context on the timeline of events and Crown involvement to date is provided in Annex
1.
Key decisions required

5.
The latest bridging finance provided to RAL is due to run out by the end of March 2024
requiring decisions to be made on several issues. MBIE officials are expected to put up
a Cabinet paper with final details and options for the future of RAL seeking final
agreement on those options. An overview of the key decisions as they pertain to the
two ski fields and broader fiscal issues is provided below.

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Future of Tūroa ski field
6.
There is a prospective operator in place for the Tūroa ski field, namely Pure Tūroa
Limited (PTL).  They have requested some further financial support as a condition of
their bid.  The bid is also conditional on the Department of Conservation (DOC)
granting the operator a concession to operate on the mountain. Ministers wil  need to
decide whether to confirm this support, or withdraw support and allow the liquidation
process to play out. Alternatively, Ministers could direct officials to develop an
alternative solution,  s9(2)(j)
Support bid from Pure Tūroa Limited
7.
The immediate commercial solution for the future of the Tūroa ski field is to support
PTL’s bid for the assets and operation of Tūroa ski field only  s9(2)(j)
8.
The previous Government agreed in-principle to provide $3.05 million  s9(2)(b)(ii)
to PTL to support their bid, conditional on their
concession application. The $3.05 million of Crown funding would be comprised of:
a
s9(2)(i)
b
9.
This funding is already appropriated via the  *
of remaining ringfenced
funding from the Regional Strategic Partnerships Fund (RSPF) so it would not create
any new fiscal implications (beyond forgoing the option to return the funding to the
RSPF or the centre).
*s9(2)(f)(iv), 9(2)(i),
and 9(2)(j)
No Crown support for Pure Tūroa or RAL
10.  Alternatively, you have the option to withdraw support for Pure Tūroa and not provide
any additional funding to RAL for the Tūroa ski field. This wil  result in RAL (via the
receivers) beginning to liquidate its assets and shutting down the ski field.
11.  Such an option would prevent further costs to the Crown in supporting the operation of
the Tūroa ski field.  It would, however, have other fiscal implications as RAL would likely
terminate their current concession and trigger a liability to remove infrastructure and
remediate the land (the ‘make good’ liability), currently treated by DOC as a specific
fiscal risk. As RAL cannot afford to do so, the cost of this would fal  onto the Crown. The
implications of this and options on how to treat the liability are discussed below (see:
Broader fiscal and Crown issues).
Future of Whakapapa ski field
12.   As there is no prospective commercial operator Ministers have the option of extending
the current interim solutions (maintaining the viability of the ski field for any potential
future commercial operations) or withdrawing support and allowing the liquidation
process to be concluded.

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Page 6 of 32
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s9(2)(f)(iv), 9(2)(i), and 9(2)(j)

T2024/149 Tūroa and Whakapapa ski fields – briefing on upcoming Ministerial meeting and decisions
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s9(2)(f)(iv), 9(2)(i), and 9(2)(j)
No Crown support for Whakapapa or RAL
15.  Alternatively, Ministers can withdraw support and not provide any additional funding to
RAL for the Whakapapa ski field. As with Tūroa, this wil  result in RAL (via the
receivers) beginning to liquidate its assets and shutting down the ski field.
16.  s9(2)(f)(iv)
Again, as with Tūroa, if RAL terminates their concession for the
Whakapapa ski field, the make good liability wil  likely be triggered (see: Broader fiscal
and Crown issues).
Broader fiscal and Crown issues

17.  Should the Government decide to no longer support RAL or a prospective future
operator in operating one or both of the ski fields following the depletion of bridging
finance at the end of March 2024, this will result in liquidation and subsequent
termination of RAL’s concession(s). When this occurs, there are a number of
substantial costs that will fall upon the Crown. This includes the cost of securing the
ski field and the obligation to ‘make good’ the mountain.
18.  The exact costs will depend on if one or both ski fields are shut down. If it is only one,
then only part of the mountain needs to be “made good”. We expect this relative
costing to be confirmed via DOC in the coming weeks.
Securing and managing the ski field
19.  In any scenario where there is no operator of either ski field, DOC would become de
facto responsible for running the essential services on the mountain, including the
sewage and water supply services for Whakapapa village, emergency eruption warning
systems, hazardous chemical storage and electricity supply to the mountain.
20.  s9(2)(f)(iv)
Make good contingent liability
21.  Under the terms of RAL’s concessions, RAL must remove all infrastructure and
remediate the land on termination of their concessions – known as the ‘make good’
provision. As RAL cannot afford to fulfil this ‘make good’ provision, this cost and
obligation would practical y fall to the Crown, via DOC. This was recognised as a
nonpublished specific fiscal risk at HYEFU, due to materiality. DOC advised there is no
T2024/149 Tūroa and Whakapapa ski fields – briefing on upcoming Ministerial meeting and decisions
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obligation on it to fulfil the “make good” provision within a particular timeframe,
however, there is a legitimate social and Treaty-based expectation (arising from DOC’s
obligations to uphold the Treaty of Waitangi and provisions in the Park Management
Page 6
Plan) that the infrastructure would be removed, and mountain remediated when
possible.   s9(2)(b)(ii)
22.  In a 2022 desktop assessment, DOC estimated the cost to remove infrastructure and
remediate the mountain at $47 to $88 mil ion, however these costs may now be greater
than this initial assessment. DOC is working to fully understand and estimate the final
costs to ‘make good’. Once recognised, the ‘make good’ provision will impact the
Governments key fiscal indicators, OBEGAL and net debt.
23.  DOC will require a specific appropriation and funding to be in place before the liability
needs to be recognised to avoid going unappropriated. As RAL funding ends in March,
it is likely that this may be needed as early as February. DOC must ascertain when this
liability would be triggered. We will provide an additional briefing on the accounting
treatment options for funding the liability separately (e.g., through reprioritisation,
or new funding), as more information is needed from DOC to finalise the options.  It is
possible that, under accounting rules, DOC wil  need to recognise and expense the
make good contingent liability even if one or both of the ski fields continue to operate.
The partly comes down to whether the liability can reasonably be quantified at this
time, and will need to be confirmed by DOC in due course.
s9(2)(f)(iv) and 9(2)(i)
Concession
25.  Any new operator (i.e., Pure Tūroa Limited) must be granted a concession from the
Department of Conservation to operate any activities on Mount Ruapehu. Only certain
types of activities are permitted, which are outlined in the Tongariro National Park
Management Plan. We understand that the Department of Conservation is currently
assessing and consulting on the Pure Tūroa concession application. You may wish to
ask for an update on the process from the Minister of Conservation.
26.  We understand the current intent is for key decisions to be made for PTL’s concession
application before the end of March. If existing timeframes stay on course, a
concession is granted, and Crown funding confirmed, it is expected settlement would
take place on 1 April 2024 to allow PTL to prepare for the winter 2024 ski season. If
the process takes longer than expect (e.g., due to a legal challenge), Ministers wil
need to make a decision as to whether to provide further bridging finance.
Recommendations

T2024/149 Tūroa and Whakapapa ski fields – briefing on upcoming Ministerial meeting and decisions
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Page 10 of 32
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Page 8
Annex One: Additional detail on the timeline and Crown involvement in
Ruapehu Alpine Limited (RAL)

On 20 June 2023, a watershed meeting of RAL creditors was held to vote on the company’s
future. A proposal for the Tūroa ski field by Pure Tūroa Limited (PTL) and proposal for the
Whakapapa ski field by Whakapapa Holding Limited (WHL), which collectively required  *
in Crown support, were presented. The meeting ended in a stalemate as the
proposals were not agreed to and subsequently, RAL was put into liquidation on 21 June
2023. The  *
comes from a pool of ringfenced funding from the Regional Strategic
Partnership Fund (RSPF) for RAL (of which  *
remains at present).
Cabinet agreed to an interim solution to stabilise RAL and provide the incoming Government
with a range of options to determine RAL’s future post-election. This interim solution
included:
*s9(2)(b)(ii), 9(2)(i),
and 9(2)(j)
a
placing RAL in receivership (by purchasing ANZ debt owed to RAL) to give the
Crown greater control and flexibility over RAL and determining its future.
b
providing in-principle agreement for $3.05 mil ion of Crown support for PTL’s bid
(subject to being granted a concession and final Cabinet approval) to enable PTL to
apply for a concession.
c
providing RAL (via its receivers) with bridging finance ($4.3 mil ion loan) to continue
operations until the end of March 2024 to provide enough time for concession
process to finish ahead of the winter 2024 ski season and give officials enough time
to work with iwi and stakeholders on medium term solutions for continued operations
of the Whakapapa ski field (in the absence of a preferred bid).
Since 2018, the Crown has provided considerable support to RAL, including $15 million of
early Provincial Growth Fund (PGF) loans to expand RAL’s offerings, $17.3 million in PGF
and RSPF loans that have served as bridging finance during voluntary administration,
liquidation, and receivership. The Crown has also incurred costs due to the liquidation
including $1.5 million to DOC to cover unpaid concession fees and debts owed by RAL.
T2024/149 Tūroa and Whakapapa ski fields – briefing on upcoming Ministerial meeting and decisions
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Page 12 of 32
It’s tentative really as it may not be required in the end. But the information will need to be generated as part of the
Cab paper anyway.

Cheers,
Josh

From: Brock Stobbs [TSY] <[email address]>
Sent: Wednesday, February 7, 2024 2:50 PM
To: Josh Hercus <[email address]>
Cc: Victoria Rhodes-Carlin [TSY] <[email address]>
Subject: RE: RAL Updates?

Thanks Josh
I don’t think we did see that slide deck so thanks for sending that through.

As for feedback, I’ll check with the others before getting back to you. What kind of timeline are you working towards
for this briefing, or is it still tentative?

Cheers

From: Josh Hercus <[email address]>
Sent: Wednesday, February 7, 2024 8:19 AM
To: Brock Stobbs [TSY] <[email address]>
Cc: Victoria Rhodes-Carlin [TSY] <[email address]>
Subject: RE: RAL Updates?

Hi Brock,
We don’t think anything was specifically commissioned but there were some themes from the Ministers’ meeting
that we’re following up on. We understand these to be:

-
s9(2)(f)(iv)
-
-

Will put a briefing together covering these topicss9(2)(f)(iv)

Also will have some economic estimates but these have been challenging to pin down.
That final point around s9(2)(f)(iv)
is mainly to provide some background on what happened with the
WHL side of things. Their withdrawal from the process is now public: Agreement to sell Turoa signed - Newsroom
What I’m trying to work through is whether we include any recs. s9(2)(f)(iv)

Let me know if you have any feedback but we’re not going to be raising any matters relating to DOC as we
understand they are generating advice around the make good costs.

Cheers,
Josh
2

Page 13 of 32

From: Brock Stobbs [TSY] <[email address]>
Sent: Monday, February 5, 2024 12:28 PM
To: Josh Hercus <[email address]>
Cc: Victoria Rhodes-Carlin [TSY] <[email address]>
Subject: RAL Updates?

Kia ora Josh

Just thought we’d check in to see how MBIE is progressing with RAL – our understanding is some ‘distilled advice’
was commissioned on the implications of the medium-term solution for Whakapapa. Keen to know how far MBIE is
in developing that and seeing a draft of the advice at the earliest opportunity, as well as any other developments • ....,

Cheers

Brock Stobbs (he/him) | Analyst | Regions, Enterprise, and Economic Development | Te Tai Ōhanga – The
Treasury
Tel: s9(2)(k)
| Email/IM: [email address]

CONFIDENTIALITY NOTICE

The information in this email is confidential to the Treasury, intended only for the addressee(s), and may also be legally privileged. If you
are not an intended addressee:
a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.
3

Page 14 of 32

Brock Stobbs [TSY]

From:
Brock Stobbs [TSY]
Sent:
Thursday, 15 February 2024 3:06 pm
To:
Josh Hercus
Cc:
Tim Baxter [TSY]; Victoria Rhodes-Carlin [TSY]; Katie Neate [TSY]; Michel e Paki;
Philippa Harray; Adam Wood; Murray Beatson
Subject:
RE: For consultation 14 Feb: Draft Cabinet paper - Decisions to continue support for
RAL post-March 2024

Attachments:
Treasury comment - Decisions to continue support for RAL post-March 2024
Cabinet paper.docx

Kia ora Josh
Thanks for sending this through. Please see attached a copy of the draft Cabinet paper with our comments attached.
Some of the key points that we have raised are:
•  The Cabinet paper needs to build in provision for other agencies views – we will discuss internally but expect
s9(2)(f)(iv)

•  s9(2)(f)(iv)

•  The wording around the make good costs and obligation needs to be carefully managed. s9(2)(f)(iv)


•  The section on the regional economy needs to account for the fact that the economy is dynamic and job
losses are temporary not structural.

Let us know if you want to follow up and/or discuss any of the comments/points raised.
Cheers

From: Josh Hercus <[email address]>
Sent: Wednesday, February 14, 2024 7:26 PM
To: [email address]; [email address]; [email address]; [email address]; Tim Baxter
[TSY] <[email address]>; [email address]; rhiannon.bertaud-
[email address]; Brock Stobbs [TSY] <[email address]>; Victoria Rhodes-Carlin [TSY]
<[email address]>
Cc: Michelle Paki <[email address]>; Philippa Harray <[email address]>; Adam Wood
<[email address]>; Murray Beatson <[email address]>
Subject: For consultation 14 Feb: Draft Cabinet paper - Decisions to continue support for RAL post-March 2024

Importance: High
Kia ora koutou,
Thanks for your feedback on previous versions of the Cab paper. Please find attached the latest version.
Comfortable with it being shared more widely with the appropriate people in your organisations. The proposed
timeframe for Cabinet is:

15/16 Feb
Draft Cabinet paper provided to office
19-27 Feb
Consultation
28 Feb
Officials incorporate feedback for Final paper
29 Feb
Lodgement
1

Page 15 of 32

6 March
Considered by ECO
11 March
Considered by Cabinet

If you could please provide any feedback to me by 3pm Thursday that would be greatly appreciated. Given the short
timeframes, we’re looking for any main concerns you might have. The plan is for it to go over for Ministerial
consultation next week. So there is an opportunity to make changes before final lodgement.

Happy to discuss further as needed.

Cheers,
Josh
Josh Hercus
PRINCIPAL ADVISOR TO ROBERT PIGOU, DEPUTY CHIEF EXECUTIVE and
HEAD OF KĀNOA - REGIONAL ECONOMIC DEVELOPMENT & INVESTMENT UNIT

[email address] | Mobile: s9(2)(g)(ii)
15 Stout Street, Wellington 6011, PO Box 1473, Wellington 6140

2

Page 18 of 32

Reference:
T2024/449

Date:
26 February 2024

To:
Minister of Finance (Hon Nicola Willis)

Deadline:
Your office requested this advice by close today

Ruapehu Alpine Lifts – Further advice on interim funding
arrangements and the concession process
Purpose

You requested further advice on the options to provide interim support for Ruapehu
Alpine Lifts (RAL) to operate the Whakapapa ski field for the upcoming ski season only,
deferring a final decision on its future.

Context

The Ministry of Business, Innovation and Employment (MBIE) has circulated a draft
Cabinet paper for Ministerial consultation regarding the future of the Tūroa and
Whakapapa ski fields, which are currently run by RAL’s receivers fol owing its
liquidation.

The paper seeks agreement to support a commercial operator (Pure Tūroa Limited) to
take over operating the Tūroa ski field, subject to successful conclusion of the ongoing
application for a concession from the Department of Conservation (DOC).

It also seeks a decision on the future of the Whakapapa ski field and provides two
primary options:
1.
Provide further support to RAL (via its receivers) s9(2)(f)(iv), s9(2)(i), s9(2)(j)

2.
Withdraw support and allow the receivers to progress with the liquidation of the
Whakapapa ski field

The Treasury has previously provided fuller advice on the issue (T2024/149 refers),
which included our recommendation that support is withdrawn from the Whakapapa ski
field.

Interim commercial arrangements

1

Page 19 of 32

Practically, since RAL is already in receivership and liquidation, if sufficient funding is
provided then it can continue to operate. This would be necessary to some degree
even if Ministers agreed to transfer the assets and operation to a new entity, because
RAL would need to operate until the transition was completed. Ideally, any transition
would be completed before the start of, or at the end of, the ski season. This is
because tasks such as the requirement to move ~300 employees to new contracts
would be operationally disruptive.

If Ministers wanted to RAL to continue to operate under receivership for the 2024/25 ski
season, RAL’s receivers have advised MBIE that it would cost approximately $7
million. s9(2)(f)(iv)

Experience suggests that cost increases are possible.  Funding could be
sourced from the ring-fenced amount in the Regional Strategic Partnership Fund,
although if costs increased significantly a new source of funding might be required.
The figures assume that the deal with Pure Tūroa Limited is completed and only the
Whakapapa ski field assets and Sky Waka remain in RAL. The receivers’ fees are
included in those costings and are around s9(2)(f)(iv)

s9(2)(f)(iv), s9(2)(i), s9(2)(j)

Concession process

The consultation process for the Tūroa ski field is ongoing. DOC received nearly 500
public submissions on Pure Tūroa’s concession application and is now holding public
hearings. DOC advises that they are aiming to make a decision on the concession
application by 30 March 2024. If the concession is approved, this will enable Pure
Tūroa to take over operations prior to the upcoming ski season.

s9(2)(f)(iv), s9(2)(i), s9(2)(j)

The DOC concession processes typically take
6-12 months for significant applications, and the absolute minimum DOC can reduce
the assessment period down to is four months. For a new concession to be granted, a
new entity has to be established first and they must make the submission. The
submission will need to include a range of evidence such as environmental reports
(meaning some preparation time is required following establishment). Public
consultation and engagement with Treaty partners must occur throughout this process.

Interaction with wider decision

There are some risks to pursuing an interim solution. Most notably it is likely to create a
strong public expectation that ongoing medium/long term support wil  be provided. By
November 2024 the Whakapapa ski field wil  have been operated in effect by the
Government for over a year and two ski seasons without a clear signal over its future.
s9(2)(g)(i)

2

Page 20 of 32

s9(2)(f)(iv), s9(2)(i), s9(2)(j)

Tim Baxter, Senior Analyst, Regions Enterprise and Economic Development, s9(2)(k)

John Marney, Manager, Regions Enterprise and Economic Development, s9(2)(k)

3

Page 21 of 32

Tūroa and Whakapapa ski fields: proposed options for their future
Hon Nicola Willis, Minister of Finance
Treasury contact: Tim Baxter
Sign out contact: John Marney (s9(2)(k)
)
Description:
This paper seeks a Cabinet decision on support for the Tūroa and Whakapapa ski
fields. It recommends: (a) approving $3.05 mil ion of funding to support the sale of the
Turoa ski field; and (b) providing $7 million of government support for Whakapapa now
s9(2)(f)(iv), s9(2)(i), s9(2)(j)

Comments:
Background: Treasury previously provided you with advice on the future of the ski
fields operated by Ruapehu Alpine Lifts Limited (T2024/149 and T2024/449 refer). We
agree with the summary of options provided by MBIE officials in their Cabinet paper, but
not their recommended approach for the Whakapapa ski field.

Treasury Recommendation:
Provide Pure Tūroa Limited (PTL) with $3.050 mil ion to support their purchase of Tūroa
ski field assets – subject to approval of a Department of Conservation (DoC)
concession.
Withdraw support for Whakapapa ski field and allow receivers to proceed with
liquidation. We continue to recommend against continued support for Whakapapa ski
field, which we do not think will meaningful y increase the likelihood of finding a long-
term commercial operator.

If support is provided for one year, s9(2)(f)(iv)

1

Page 22 of 32

Fiscal Implications:
Tūroa ski field
This paper seeks approval to provide $3.050 million in equity and loans to PTL from
existing ringfenced funding appropriated to the Regional Development portfolio in Vote
Business, Science and Innovation. No new funding is sought.

Whakapapa ski field
If support for the on-going operation of the Whakapapa ski field is provided, this will
*s9(2)(f)(iv), s9(2)(i),
draw down the remaining
s9(2)(j)
*
in the Regional Strategic Partnership Fund
either partial y or in ful . The estimated cost of a 1-year option is $7 million.

s9(2)(f)(iv), s9(2)(i), s9(2)(j)

Withdrawing support from Whakapapa would trigger the crystal isation of the ‘make
*s(9)(2)(i), s9(2)(j)
good’ liability, estimated to be between
*
. As per accounting rules,
there is no discretion in recognising and expensing the liability once it is triggered.
s9(2)(f)(iv)

DOC wil  become responsible for managing essential services on the (whole) Mountain,
including volcanic warning systems, electricity, and sewage.  The Cabinet paper states
that these costs for DOC are likely to be s9(2)(f)(iv) and s9(2)(j)
. We think this figure is
likely overstated as it appears to include *
relating to the Tūroa ski field.
s9(2)(f)(iv)
and s9(2)(j)
s9(2)(f)(iv)

. We are providing you with separate advice on how to manage the
liability and management costs via the Out of Cycle funding request from the Minister of
Conservation. We recommend using existing appropriated funding ringfenced by MBIE
to fund the essential services once we have received detailed costings.

Funding source: Vote Business, Science and Innovation (Regional Strategic
Partnership Fund)
Operating ($m)
Capital ($m)

26/27 &
26/27 &
23/24  24/25  25/26
22/23 23/24 24/25 25/26
outyears
outyears
Turoa
3.050

7.000 for 1 year option,
Whakapapa
s9(2)(f)(iv), s9(2)(i), s9(2)(j)

2

Page 23 of 32

3

Page 24 of 32

Brock Stobbs [TSY]

From:
Jimmy Bel am [TSY]
Sent:
Wednesday, 24 April 2024 2:28 pm
To:
josh.hercus
Cc:
Tim Baxter [TSY]; Brock Stobbs [TSY]; Stacey Lulham [TSY]; Mitchel  Spence [TSY]
Subject:
RE: Approving a $7 million loan to Ruapehu Alpine Lifts Limited (in liquidation and
receivership) from the Regional Strategic Partnership Fund
Attachments:
Annex One Cab paper - Decisions to continue support for RAL post-March 2024
(002).docx

Hi Josh,

Just the below feedback from us:
•  Further detail on why the loan is required (been a while since MoF engaged). Might be easier to do so by
ensuring the attached original cabinet paper is put up to MoF at the same time (so she can consider them
side by side), or just including content in this brieﬁng – no strong views either way
•  Clarity on public comms, including reiteration of public announcements saying there won’t be Govt funding
for future Whakapapa seasons (and that no risk of need for further RSPF funding due to this) – assume there
is potential for some media noise when the implications of that become clearer

Thanks,
Jimmy

Jimmy Bellam (he/him) | Graduate Analyst - Kaitātari Tohu Paetahi | Regions, Enterprise, and Economic
Development | Te Tai Ōhanga – The Treasury
Email: [email address]

From: Josh Hercus <[email address]>
Sent: Tuesday, April 23, 2024 11:58 AM
To: Jimmy Bellam [TSY] <[email address]>
Cc: Tim Baxter [TSY] <[email address]>; Brock Stobbs [TSY] <[email address]>; Stacey
Lulham [TSY] <[email address]>
Subject: RE: Approving a $7 million loan to Ruapehu Alpine Lifts Limited (in liquidation and receivership) from the
Regional Strategic Partnership Fund
Hi all,

Just following on from the chain below, I’ve attached our brieﬁng to MoF to agree to provide a $7m loan to RAL to
continue operating the next ski season. We undertook to get this to MoF before the end of April.
Should be much more straight forward than the previous brieﬁng. The whole document is 5 pages.

Can you please me know if you have any comments/issues from TSY end? We’re hoping to send it up tomorrow but
can hold back if there’s any major issues.

Cheers,
Josh
1

Page 25 of 32

Josh Hercus
PRINCIPAL ADVISOR TO ROBERT PIGOU, DEPUTY CHIEF EXECUTIVE and
HEAD OF KĀNOA - REGIONAL ECONOMIC DEVELOPMENT & INVESTMENT UNIT

[email address] | Mobile: s9(2)(g)(ii)
15 Stout Street, Wellington 6011, PO Box 1473, Wellington 6140

From: Jimmy Bellam [TSY] <[email address]>
Sent: Monday, April 8, 2024 4:49 PM
To: Josh Hercus <[email address]>
Cc: Tim Baxter [TSY] <[email address]>; Brock Stobbs [TSY] <[email address]>; Stacey
Lulham [TSY] <[email address]>
Subject: FW: Public interest test for RAL and PTL loans through the RSPF

Hi Josh,
Attached are requested changes from Treasury legal.

In addition, can you please include references where appropriate to the Cabinet paper MBIE provided in March
upon which the decisions were made?

Thanks,
Jimmy

Jimmy Bellam (he/him) | Graduate Analyst - Kaitātari Tohu Paetahi | Regions, Enterprise, and Economic
Development | Te Tai Ōhanga – The Treasury
Email: [email address]

From: Tim Baxter [TSY] <[email address]>
Sent: Monday, April 8, 2024 2:12 PM
To: Jimmy Bellam [TSY] <[email address]>
Subject: FW: Public interest test for RAL and PTL loans through the RSPF

2

Page 26 of 32

From: Josh Hercus <[email address]>
Sent: Monday, April 8, 2024 1:12 PM
To: Tim Baxter [TSY] <[email address]>
Subject: RE: Public interest test for RAL and PTL loans through the RSPF

Awesome thanks – see attached. Have just added a bit more around the RSPF process/framework as I’m not sure
MoF would have seen it before. We’re hoping to get the brieﬁng up today as it’s fairly urgent to align with the
settlement of PTL’s SPA, which is this Friday.
s9(2)(g)(i)

.

On the $7m for RAL this year – we’re working through what that looks like as technically s9(2)(j)

MBIE and the Receivers have been occupied with the Tūroa side and starting to look at
what’s next for Whakapapa.

Happy to discuss anything further on this.

Cheers,
Josh

From: Tim Baxter [TSY] <[email address]>
Sent: Monday, April 8, 2024 12:56 PM
To: Josh Hercus <[email address]>
Subject: RE: Public interest test for RAL and PTL loans through the RSPF

Hello, yep yes pls – mostly so our legal can take a look over it (unlikely to have any comments if it uses the same
format as the PPFS ones)
Not really nope, the oﬃce will ask if we have anything to add and will probably say no, though we might add some
note about if you want a walk away option post this ski season that looks meaningfully diﬀerent you should ask for
further advice on it soon + a note that we think suﬃcient info has been provided through the cabinet process to
enbable her to make a PI descision

From: Josh Hercus <[email address]>
Sent: Monday, April 8, 2024 9:17 AM
To: Tim Baxter [TSY] <[email address]>
Subject: Public interest test for RAL and PTL loans through the RSPF

Hi Tim,
Now that the PTL concession has been granted, we’re whipping up a brieﬁng to go up to MoF ASAP to approve the
loans, which we consider to fall under the Approved RSPF Loan Framework. Would you like to see this before it goes
over?
Also, does TSY have any further involved with this process? As in, do you provide separate advice to the Minister on
the loans?

Cheers,
Josh
3

Page 27 of 32

Josh Hercus
PRINCIPAL ADVISOR TO ROBERT PIGOU, DEPUTY CHIEF EXECUTIVE and
HEAD OF KĀNOA - REGIONAL ECONOMIC DEVELOPMENT & INVESTMENT UNIT

[email address] | Mobile: s9(2)(g)(ii)
15 Stout Street, Wellington 6011, PO Box 1473, Wellington 6140

CONFIDENTIALITY NOTICE

The information in this email is confidential to the Treasury, intended only for the addressee(s), and may also be legally privileged. If you
are not an intended addressee:
a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.
4

Page 30 of 32

From: Tim Baxter [TSY] <[email address]>
Sent: Tuesday, May 21, 2024 10:26 AM
To: ^Parliament Marnya Jain <[email address]>; Katie Neate [TSY] <[email address]>
Subject: RE: Next Steps of the commercial process to sell Ruapehu Alpine Lift Limited's (in liquidation and Receivership) Whakapapa business

Not in particular from our side, beyond that we agree with Kanoa’s preference for getting to resolution as quickly as is feasible

From: Marnya Jain <[email address]>
Sent: Monday, May 20, 2024 5:26 PM
To: Tim Baxter [TSY] <[email address]>; Katie Neate [TSY] <[email address]>
Subject: FW: Next Steps of the commercial process to sell Ruapehu Alpine Lift Limited's (in liquidation and Receivership) Whakapapa business
The attached has come across. Anything to ﬂag?
Ngā mihi
Marnya

Marnya Jain
Private Secretary - Finance
Office of Hon Nicola Willis
Minister of Finance

Level 7.2 Executive Wing, Parliament Buildings, PO Box 18041, Wellington 6160, New Zealand
M: s9(2)(g)(ii)
E: [email address]

From: Ashley Stuart <[email address]>
Sent: Monday, May 20, 2024 4:18 PM
To: Harry Evans <[email address]>; Fern Hyett <[email address]>; Marnya Jain <[email address]>
Cc: Alastair Johnstone <[email address]>; Joana Johnston <[email address]>; Dale Karauria
<[email address]>; Melanie Quintela <[email address]>; Corin Higgs <[email address]>; Lauren MacRae
3

Page 32 of 32

Ashley Stuart
Private Secretary (Regional Development) Office of Hon Shane Jones
Minister for Regional Development | Minister for Resources | Minister for Oceans and
Fisheries | Associate Minister of Finance | Associate Minister for Energy
Mobile: s9(2)(g)(ii)
Email: [email address]

5