Tourism and Hospitality Minister Matt Doocey was up front with the $3 million the government is spending on “a suite of new surveys and research which will help fill critical gaps in tourism and hospitality sector data”.
But was it his job to tell us about the $5 million the government has loaned to a private corporation for the purchase of a big Ruapehu skifield?
Or should that news have come from Regional Economic Development Minister Shane Jones, a bloke who normally can’t keep quiet about the good things he is doing with public money?
No matter which minister might have (or should have) told us, the fact is we can find no record of an announcement on the government’s official website.
But it’s no secret.
The government’s Kānoa – Regional Economic Development & Investment Unit this week posted a statement headed:
No matter which minister might have (or should have) told us, the fact is we can find no record of an announcement on the government’s official website.
But it’s no secret.
The government’s Kānoa – Regional Economic Development & Investment Unit this week posted a statement headed:
Government funding confirmed for Whakapapa ski field purchasers
This said:
Cabinet has agreed to provide Whakapapa Holdings 2024 Limited (WHL) with a loan of up to $5 million to support its purchase of the Whakapapa ski field, on the condition that WHL obtain a concession to operate the ski area from the Minister of Conservation.
Confirmation of government funding means that WHL can now proceed with the next steps in the sale process.
If WHL is granted a concession to operate the ski field, the sale is expected to be completed in April 2025 enabling the Whakapapa ski field to be open for the 2025 ski season. Ruapehu Alpine Lifts Limited’s (RAL) receivers will continue to operate the Whakapapa ski area in the meantime.
The recreational activities operated on Mt Ruapehu have long been a cornerstone of the Manawatū-Whanganui economy. At its peak, RAL employed over 300 workers to support its operations on Whakapapa. Cabinet’s decision gives certainty to the local communities and businesses in the district that Whakapapa will be open in 2025.
RAL will not receive any further government funding.
The Taxpayers’ Union is calling this deal “an abuse of taxpayer money”.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“This can no longer be seen as a mistake of government judgement. Once is a waste, twice is incompetence, but nine times is a scandal. How much longer is this grift going to continue?
“If Shane Jones really meant it when he said the eighth payment was “the last chance saloon”, why are we now talking about a ninth payment? Since 2018, more than $50 million of government-backed support has been handed over to this failed project.
“The Ruapehu skifield keeps failing to stay afloat in no small part because Government departments are tying it up in consent restrictions and red tape. Taxpayers keep getting stuck with the tab for cleaning up the Government’s mess.
“It’s time for the abuse of taxpayer money to stop, and start investing in things that will actually benefit hardworking Kiwis.”
The Taxpayers’ Union has been keeping an eye on the government’s funding of the ski field, round by round.
So has Newsroom, which this week listed these contributions to the ski field’s wellbeing:
- 2018 – $10m towards financing the Sky Waka (pre-insolvency)
- 2020 – $5m for operating expenses (pre-insolvency)
- November 2022 – $2m loan to support RAL (in insolvency)
- December 2022 – $6m loan to support RAL (in insolvency)
- June 2023 – $5m loan to support RAL (in insolvency)
- October 2023 – $7m loan to support RAL (in insolvency)
- March 2024 – $7m loan to support RAL (in insolvency)
- March 2024 – $3.05m Tūroa purchase support
- December 2024 – $5m Whakapapa purchase support (committed)
Cabinet has endorsed an ownership bid for the Whakapapa ski field and has agreed to loan Whakapapa Holdings up to $5 million to support its purchase.
The funding is conditional on Whakapapa Holdings obtaining a concession from the Department of Conservation to operate in the Tongariro National Park.
The company is fronted by Dave Mazey, the skifield entrepreneur who previously merged the two fields, and financial backers from The South Island Office (an investment group led ski industry veteran Tom Elworthy).
They have already lodged a concession application.
If approved, the Government’s regional economic development and investment arm Kānoa expects the deal to be completed in April 2025, enabling the Whakapapa ski field to be open for the coming winter.
It will be operated by its receivers in the meantime. It has been run by insolvency practitioners for more than two years, ever since Ruapehu Alpine Lifts was put into voluntary administration in October 2022, owing more than $40m.
The Tūroa ski field was sold in February and has been operating under new private ownership – but the future of Ruapehu’s northern ski field Whakapapa remained uncertain.
If taken up in full, the Government’s $5m loan to Whakapapa Holdings would take direct Crown expenditure to save skiing on Ruapehu post insolvency to $35m.
Shane Jones (along with Conservation Minister Tama Potaka) has issued a statement about government financial help for the skifield. It was posted on March 13.
Ruapehu Alpine Lifts bailout the last, say Ministers
Cabinet has agreed to provide $7 million to ensure the 2024 ski season can go ahead on the Whakapapa ski field in the central North Island but has told the operator Ruapehu Alpine Lifts it is the last financial support it will receive from taxpayers.
Cabinet also agreed to provide $3.05 million in equity and loan funding to support the sale of Tūroa ski field assets to Pure Tūroa Ltd (PTL).
Regional Development Minister Shane Jones says the decision provides more certainty for Tūroa, and a final opportunity for Ruapehu Alpine Lifts (RAL) to find a commercially viable solution for Whakapapa, on the other side of Mount Ruapehu.
Would there be more help?
“The Government cannot indefinitely sustain the ski fields. That is why Cabinet is signalling a clear end point. If no acceptable commercially led solution can be found within the next year, there will be no additional government funding for RAL’s Whakapapa ski operations,” Mr Jones says.
Shane Jones told Mike Hosking then that the latest support would definitely be the last.
He said he had no mandate to offer more money and was calling the bailout the “last chance saloon”.
Bob Edlin is a veteran journalist and editor for the Point of Order blog HERE. - where this article was sourced.
4 comments:
Shane is so good at splashing the cash to friends and family it is surprising he isn't in the Maori party.
Whakapapa Holdings 2024 Limited is owned by Elsworthy and Stringer, both from serious SI millionaire families... why does the tax payer have to prop up this business, why cannt they fund their own way?
The ultimate owner of the mountain is the Iwi, the govt is no doubt lending to the ski field operators to keep the mountain revenue earning and paying money to the Maori tribes..
I note the the previous Labour Government contributed $35 million towards the ski fields well being, whilst the current government has contributed $15.05 million including the latest contribution. So it's clearly not all to do with Shane Jones, Ms LBS. And the land belongs to the Crown I understand.
Having purchased 5 life passes for my family I have always been interested in the future of the mountain.
The previous operators were compelled to employ locals to obtain iwi co-operation particularly for resort consents , DOC approvals. and local council consents. It's a bit like the monies paid to Ngai Tahu or Tainui totaling some $200 million for river water consents. Elsewhere known as a bribe.
Which is why the mountain was so often late opening on perfectly reasonable days. It wasn't in the local iwi's kaupapa to get out of bed early on cold winter mornings .
And I understand the local iwi' have tried hard to muscle into this deal getting more free lunches from the taxpayer.
So I think this is a win -win deal. The ski fields operation is in the hands of competent well financed operators, and they will still have to employ the locals. Who loses there ?
And it seems like it's this government fixing another of the previous governments financial cock-ups. And who loses on that's one ?
Labour that's who !
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