Episode Transcript
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0:01
I'm Sharon, Brick Kelly and down
0:04
the detail. I'm at full capacity
0:06
field on Mount Group hey who
0:08
and it is a spectacular day.
0:11
I'm no cloud, a dusting of
0:13
snow up on the highest peaks
0:15
and know when and and these
0:18
a a steady trickle of tourists
0:20
coming up here buying the tickets
0:22
to go on the gondola, someone
0:25
just out for a walk hdds
0:27
a cyclist hitting of down the
0:29
mountain. But that's. Not
0:31
speak take killer about this mountain
0:34
is the uncertain future of the
0:36
ski field here, and of course
0:39
the uncertain future of the shit.
0:41
How the historic hotel that's been
0:43
shut for over a year now
0:46
at the foot of the mountain?
0:48
Disappointment. Frustration: A black possibly
0:50
of concentration. It's an impending
0:53
free during your turn. And.
0:55
Some coordinates. But I was there
0:57
was hope. Why? Couple of times
1:00
senior journalist Matthew Mouse and has
1:02
been covering the mountain and its
1:04
trouble since August Twenty twenty two
1:07
when a hundred workers it to
1:09
Roski Field lost their jobs. Later,
1:11
he'll tell us more about the
1:14
impact on the region and newsrooms.
1:16
Business reporter Andrew Bhavan has written
1:18
more than thirty stories on the
1:21
twists and turns of the ski
1:23
fields, the collapse of the operator
1:25
Rupee Who alpine left's the creditors
1:28
owed seventy. Million Dollars, the
1:30
on again, off again buyers,
1:32
and the millions of taxpayer
1:34
dollars to bail it out.
1:36
Yeah, it's It's very complicated. I
1:38
mean, you've got multiple government departments,
1:41
multiple. Ministers. You've
1:43
got the receivers, You've got the liquidators,
1:45
You've got people who pay to build
1:47
the Skywalker gondola on fuck papa, You've
1:49
got the life pass holders and then
1:52
obviously not repo who is is so
1:54
important to so many different the We
1:56
and Copper groups, who who don't need
1:58
to have a say. An
2:01
ancestor not not amount of it is
2:03
very important. What's. The nicest.
2:05
Own ski feels so. The Department
2:07
of Conservation is currently going through
2:09
a process to approve a buyer
2:11
for throw. It operates in the
2:13
tongue rare an issue park and
2:16
so that goes through to our
2:18
will have an owner. But.
2:20
There's no real answer for soccer bother.
2:23
Who's. Running at at the moment.
2:25
So it's being run by receivers
2:28
appointed by. Mb. Com
2:30
and it's regional development on Com. Noah
2:32
was previously being run by Peter B
2:35
C who are liquidators basically appointed by
2:37
the company, but the government's bought some
2:39
debts, mains it for a dollar thirty
2:42
million dollars at it for dollar and
2:44
appointed it's own people to run the
2:46
thing as as as at once. And
2:48
let's read: hat. On how
2:51
it's come to this
2:53
and why it's so
2:55
complicated site. That.
2:57
And what was that? Lights Twenty
2:59
twenty. Tie a rope His who
3:01
alpine less. which was of racing
3:03
fight sock puppet. And Tude all
3:06
ski fields winton to. Voluntary
3:08
administration scare so basically they had
3:10
covered and then you know that
3:13
the down on their luck it's
3:15
been hot keepers number through and
3:17
didn't notice have shocker season. They.
3:19
Don't have the money to keep things going
3:21
and and they call and voluntary administrators who
3:23
sort of come in and I try find
3:26
a path. Forward for the company.
3:28
Those solitary admin side as we came to
3:30
know them quite well especially John says from
3:32
yeah he Says here that they came in
3:35
and I just so many people were just
3:37
so interested that these administrators liquidated or think
3:39
as backroom operate as really are probably can
3:41
be bothered by the media every day out
3:44
a little bit fat excellent So. What
3:46
We See Job. So. John
3:48
Suskind Richard nice to come in and they just. Start.
3:51
running a business basically you know that the
3:53
business to has it's directors and to i'm
3:55
hour at the management stays the same path
3:58
tongue and and rich in a basically In
4:00
charge they're saying, all right, we're going to do
4:02
this this season. We'll allocate this much money to
4:04
that and Basically, we're
4:07
going to try sell the thing find buyers
4:09
for it. Were they successful?
4:11
There were some favored buyers Last
4:15
year the future of skiing
4:17
on Mount Luapehu may have been saved
4:20
This hub can reveal two separate bids
4:22
are now likely to be recommended to
4:24
cabinet We can reveal that MB has
4:26
given the nod to pure touro Faka
4:28
Papa will likely be taken over by
4:30
a private equity firm with links to
4:32
South Island businessman Tom L worthy and
4:34
so there was a vote of creditors to To
4:37
approve those buyers and that failed and
4:40
it failed in quite an interesting way That
4:42
was when you look back
4:44
inevitable because there are 14,000 people who
4:46
bought life passes to the ski field
4:48
And they all got to vote on
4:51
the future. So the numbers were obviously
4:53
just overwhelmingly Suede to
4:55
them but the government had the money and
4:58
so there was this sort of stalemate
5:00
situation where the government's thing didn't pass
5:02
And then the life path holders motion
5:04
didn't pass either because the government vetoed that
5:07
and maybe that makes it sound a little
5:10
bit complicated, but Nothing
5:12
was ever going to happen. What was the next
5:14
step it went into liquidation But
5:17
who help I'm lists will file for
5:19
liquidation today after two options to take
5:21
over management failed to gain enough support
5:24
among creditors at a crucial meeting yesterday
5:26
in The coming days are
5:29
pivotal as the liquidator tries to sell the
5:31
assets of fuck a Papa and to row
5:33
a ski areas to two Separate bidders. Yeah
5:35
went into liquidation, which is a means the
5:37
company is basically Voluntary
5:40
administrators say okay, we're in liquidation We're
5:43
now in a position where we can sort of break it
5:45
up strip it and they just have more
5:47
more control Nothing changed. Basically
5:50
Everything is the same under liquidation
5:52
as voluntary administration. It might have
5:54
a different name, but it seemed
5:56
like the process and the path
5:58
forward was. Actually,
6:00
the side? So who. Are these
6:02
criticisms? Were owed seventy million dollars?
6:05
Yes, You've got. Invaded Ministry
6:07
of Business Innovation and Employments Regional
6:10
Development on Can Our So that's
6:12
owed bout forty two million. So
6:14
that's the original debt, the data
6:16
bought from Nz It and some
6:19
serious birds in loans and for
6:21
a pretty aware of yes and
6:23
the gondola bondholders arrived about fourteen
6:26
million. Then you've got the life
6:28
pass holders you've you've got. People.
6:31
Who work there probably you know the
6:33
a holiday pay trades predators as well
6:35
as soon to that's people who have
6:37
to come in and maintain a maintain
6:39
the mountain. the government as
6:41
as a main criticize just
6:43
last month the government's put
6:46
on more money and same
6:48
time said reason to them
6:50
minister said that set. This
6:53
is the Last Chance Saloon adaptation of
6:55
been advised by the advisors that to
6:57
do is alive deal pertaining to to
7:00
door on the other side fuck a
7:02
proper that's a bit more complicated. We're.
7:05
A we're intensive how much the government has
7:07
put on to us. I think
7:09
we had about twenty million dollars
7:11
Now Ryan really do lose track.
7:13
That's not counting Provincial Growth Sons
7:15
gear, the Provincial Growth Fund invested
7:17
in them, and the gondola projects
7:19
that twenty million dollar figure as.
7:22
Post. Administrators yeah, which
7:24
is I water. With.
7:26
The life pass holders they need to
7:28
put in that case. To. Continue
7:30
to be Life pass. Holders. I think
7:33
so. I think from the expense of free
7:35
ride on the last passes as as about
7:37
over I'm. As it's basically
7:39
a bias as far as approach
7:41
it and those last passes will be
7:44
honored with a little bit of
7:46
a cash injection or in are buying
7:48
basically by an ally one sided
7:50
at a discount. On. Both sides of
7:52
the mountains or a reset not clear. Yet.
7:54
that's not clear i battle we don't
7:57
know anything about what's happening with back
7:59
that other entity they will be if
8:01
they put in a little bit more cash is
8:03
my understanding. We're now coming to
8:06
into winter 2024 because
8:09
we keep hearing stories about it it
8:11
just feels very uncertain.
8:14
Absolutely we know who's gonna buy
8:17
Turoa but even that there's a
8:19
layer of uncertainty right. You're
8:21
talking about the concession for
8:23
pure Turoa but
8:25
I don't understand why the concession is
8:27
such a complicated thing that it's not
8:30
just a matter of it
8:32
being transferred from the previous owners
8:34
to these owners. What
8:36
does it take to get
8:38
this concession? You have to put
8:40
in a pretty lengthy submission to doc
8:44
detailing your plans and how you're gonna
8:46
manage things on the mountain. I mean
8:48
you know we had the diesel leak
8:50
up there that poison rut is water
8:52
supply. Arua Pahu Iwe says a diesel
8:54
leak into a Toharero National Park stream
8:57
that feeds into the Uraitehi Town water
8:59
supply is devastating. The
9:02
Makotuku streams been contaminated by up to
9:04
15,000 litres of diesel
9:06
from a tank at the base of the
9:08
Turoa ski field. These
9:10
things are really really important. This
9:13
is a dual listed UNESCO site
9:16
it's our first national park and
9:18
we just need to be really careful about what
9:22
happens there and who does it and
9:24
I don't think anyone disagrees with
9:27
that. You know you tend to feel
9:29
a little bit for doc because they're kind of the
9:31
meat and a bit of a sandwich here. They have
9:33
been, they have never
9:36
sort of department that's handling these concessions
9:38
but they have by law
9:40
they have to engage with Ewe and
9:43
those other stakeholders. The complication
9:45
around it is because it's in a
9:47
national park you have very different rules
9:49
about how you can run a business
9:51
there. You're basically a concession of the
9:53
long-term lease that we're in license to
9:55
do business. They're sort of dockers
9:57
stuck in a rock in a hard place. negotiating
10:00
to look after
10:02
a national park to make sure
10:05
there's no advers effects upon that
10:07
part but they also
10:09
have to think with a business hat on and
10:12
who's going to be doing the best, who's going to run the
10:14
information on the mountain. Basically who
10:16
they can trust to look after
10:19
the natural beauty of the area.
10:26
Now before I head down the
10:28
mountain to the Chateau, let's recap.
10:31
Pure Touroa looks to be the
10:33
next owner of Touroa's ski field
10:35
if it gets the docked concession.
10:38
No new buyer has been found for
10:41
Fuka Papa, it's still being run by
10:43
the liquidators. Creditors are
10:45
still $70 million
10:47
out of pocket. But
10:49
what about iwi? Under
10:52
the Touroa National Park Plan,
10:54
Iwi need to be thoroughly
10:56
consulted, not tokenistically consulted. And
10:59
they are pretty staunchly saying
11:01
that that hasn't happened.
11:03
And even in some documentation
11:05
there's members of the community
11:08
and just saying I support
11:10
this because Iwi have been rigorously consulted.
11:13
And in Iwi saying no we haven't, you
11:15
can't just have a cup of
11:17
coffee with us a couple of times and
11:19
say that's done. So if the
11:21
ski field process does go any
11:24
further, particularly on the current dock
11:26
concession, there is a lot of
11:28
talk of judicial review, whether that comes
11:30
to anything, I'm not sure what that
11:33
would mean. Getting a judge to review
11:35
the dock's decision.
11:37
Okay. The decision process.
11:39
Why does this fit
11:41
within the Touroa National Park Plan
11:43
and dock consider the right things here?
11:46
And why? Whether
11:49
that happens, whether anything comes of it,
11:51
hard to say. That's sort of a
11:53
very expensive decision for a
11:55
group to make. But how
11:58
well treated have Iwi been? been
12:00
in this whole complicated
12:02
process. They've been
12:04
saying to anyone who listened that they're
12:06
not listening to us. And
12:09
there's the previous
12:11
Minister for Regional Development apologized
12:13
to Father Towa, sent them a letter
12:16
and said, PwC, I
12:18
haven't talked to you and we
12:20
apologize for that. PwC said, well, it's
12:22
not our job to talk.
12:24
We did our bit. It's actually the
12:27
crown's job to run that relationship. So
12:30
it's been a mess. And I
12:33
think there are members of that community who are quite devastated
12:35
about the whole thing. In itself,
12:37
the place of iwi is
12:40
complicated because there are so
12:42
many different hapu, depending on
12:44
which side of the mountain
12:46
you're on. Absolutely. And
12:49
far more fractionalized than that,
12:51
even. And even the
12:53
tributaries that come off the mountain.
12:55
So the Haunganui River, the mountain
12:57
is incredibly important to groups the whole way
12:59
down. And there are active treaty settlements over
13:02
the mountain. So you've really got
13:04
to think the government and crown
13:07
Maori relations groups really
13:11
will be watching this closely. Do
13:13
the different Maori
13:15
groups have different interests,
13:17
i.e. are they not united
13:20
on what they want for the mountain? By
13:23
and large, I think they
13:27
would share a similar vision, which is let's
13:29
do this carefully and make sure we are
13:31
listened to and taken seriously. And
13:34
you've got to think these groups probably weren't in that position
13:36
in the 50s, 60s, 70s.
13:40
There are some groups who are more sort
13:42
of, you know, they're
13:45
not opposed to Piotroa buying
13:48
the operations. Yeah. But
13:50
again, they still want to see it done carefully. They want
13:52
to be reported back to on issues
13:54
such as, you know, contamination
13:56
and air quality. that
14:01
with pure Turoa taking
14:04
over Turoa itself, there
14:07
is an issue, there's a challenge to the name.
14:09
Yeah, the Turoa name comes from
14:12
a famous leader of the area
14:15
whose ancestors still around today hate Turoa.
14:18
He's been very active and vocal in
14:20
this whole process. And perhaps
14:22
it wasn't such a
14:25
big deal when it was a
14:27
not-for-profit or more of a community organisation
14:29
like Repay Rail Planless was. But
14:32
then suddenly you've kind of got private equity
14:34
coming in and buying your name. And I
14:36
can imagine that's maybe quite
14:38
daunting. To Faritoa, at
14:41
one point when they're looking at
14:43
buying Faka Parpa Ski Field? They
14:46
did announce that, the Riki
14:48
announced that, but it got walked
14:50
back pretty quickly. I think they
14:52
engaged some people to have a look at it, some
14:56
consultants and said, this doesn't really make sense.
14:59
Why don't they? I mean, there are some very
15:01
wealthy E-Weeks. I think running
15:03
a ski field is really hard. And
15:05
unless it's a passion project, it's probably
15:08
– these are savvy business operators – it's
15:10
probably better to put your money somewhere else.
15:13
You'll probably get greater social outcomes somewhere else,
15:15
better returns as well. In
15:17
terms of E-Weeks, and Unoa wouldn't like
15:19
to speak out of turn, to
15:21
Faritoa is the major E-Weeks
15:23
around that mountain. And they
15:25
have various hapu, have different
15:27
interests in either body. But
15:30
they all look at it through a pepu
15:32
as an ancestor, as a living person.
15:36
It's often referred to as a
15:38
court of its grandfather. And I
15:41
think that's a really important thing to
15:43
take on from people. Locally,
15:46
we think that this is a living person that
15:48
needs to be treated with respect. And
15:50
that respect needs
15:52
to filter down to the
15:54
living people on the land. I'm
15:58
at the base of the mountain now. looking
16:00
at the Chateau Tongariro and
16:03
it sadly is looking
16:05
pretty shabby. The
16:08
paint is cracking and peeling
16:11
it just looks like it's
16:13
in dire need of a
16:15
serious upgrade but as we know
16:17
from the headlines just in the last I
16:19
don't know week or so there
16:21
are headlines like Chateau Tongariro are
16:24
there plans for this grand old
16:26
dame or not. Grand
16:28
Chateau Tongariro bidders need more certainty
16:30
from the government that's according to
16:33
the mayor of this area western
16:35
curtain. Haunting photos
16:37
emerge of derelict Chateau
16:39
Tongariro and Prime Minister
16:42
Chris Felixon reveals more pressing
16:44
priorities than Chateau Tongariro and
16:46
there's also a recent story
16:48
of a painting in there
16:50
potentially worth hundreds of thousands
16:52
of dollars sitting inside in
16:54
the lounge there and
16:56
it's reportedly drooping, cracking,
16:59
deteriorating kind of a symbol
17:01
of really what's happening to
17:03
this building. The Chateau
17:05
was handed over back to dock on
17:08
March the 9th of 2023 so
17:10
that was you know six months
17:14
after rumblings on ski
17:16
fields occurred and then
17:18
of course the double blow of the
17:20
Chateau being closed just before winter was
17:22
not ideal either. Yes it
17:24
was owned by the government until the
17:27
90s it was actually built
17:29
by Fletcher Construction back in the 20s which is
17:31
nothing you think about it but yeah it was owned
17:34
by the government until the 90s when it was sold
17:36
to a Malaysian corporation that
17:39
just owns all sorts of things
17:41
they own car distribution they own
17:43
palm oil plantations they own property
17:46
they own hospitals and hotels evidently
17:48
they bought the hotel and leased the land
17:51
underneath it that lease has now
17:54
expired they haven't renewed it with dock and
17:56
I think negotiations there are all ongoing I
17:58
mean if I knew what was happening I'd
18:00
have a great story on my hands, but I
18:02
don't. But they've put a lot of money into
18:04
it over the years. I mean, they did it up in the 90s. They
18:07
extended it in the 2000s. And
18:10
then, yeah, seismic issues popped up. Tourism
18:12
got really hard through the pandemic and they were selling
18:15
room nights for dirt cheap. It's
18:17
just not a good place to be. So
18:20
right now, Doc has control after that
18:22
lease expired. If you don't own the
18:24
land, you can't operate the hotel. I
18:26
guess you can't operate the hotel anyway because
18:28
it's falling to pieces. So Andrew, what are
18:31
the options for the Chateau? The
18:33
best option is finding a
18:36
buyer who's willing to take a chance and
18:38
sort of restore it to its former glory, as
18:40
it were. Otherwise, I guess
18:43
the government does it up and then tries
18:45
to attract someone in. But I don't see
18:47
that being a popular option. And
18:50
then the third option is damn,
18:52
the heritage should bowl it over. But
18:54
they're saying they won't do that. When
18:57
the Chateau was closed, we always were
18:59
told there was an earthquake strengthening
19:02
review report that was coming out.
19:05
And once that became public through
19:07
an OIA process as well, we really
19:09
did start to understand how the Chateau
19:11
was in such dire
19:14
need of an upgrade. This
19:16
is not a $3 or $4 million job to
19:19
upgrade the Chateau to current building
19:21
standards and earthquake strengths. And it
19:23
will cost more than $30 million,
19:25
I'm told. So there's a
19:27
lot of money there. Who's going to
19:29
pick up that tan? Is it Doth?
19:31
Is it the former leaseholders? Is
19:34
it the new owners? Who
19:37
knows? Do you want to buy a building that's got
19:39
$30 million worth of problems? That's
19:41
the question. And that is a big
19:43
question. What
19:46
do people want? What do the
19:48
local people want to happen? Well,
19:51
I think it's overwhelming. Local
19:53
people want ski fields. And
19:56
they want the opportunity to run
19:58
that part of the building. that
20:00
you want to see on Faka
20:02
Pape and Tewa. It's
20:05
hugely important for a lot of
20:07
those businesses who haven't pivoted to
20:10
the summertime activities like
20:12
the ski-high places and that
20:14
sort of thing. And they've
20:17
built those businesses around the
20:19
ski fields and it
20:21
is their logic books. Obviously
20:23
they are desperate to
20:26
know, for a start, who's going to be running each
20:29
field, if both fields will be run separately
20:31
or put together. But,
20:34
you know, I think the underlying feeling,
20:37
they really want that those fields
20:40
open and running for
20:43
as long as they can. That's
20:47
it for today. The detail is supported by
20:49
RNZ and NZ On Air. Alexia
20:52
Russell produced this podcast, Phil
20:54
Benj engineered it. Thanks to
20:56
Andrew Bevan and Matthew Martin.
20:59
And we'll leave you with the voices
21:01
of people who come from all over
21:03
to enjoy this slice of Altea Raw.
21:06
This is our first time here. So
21:08
we were eager to come over to Mount
21:10
Ruapeu for a long time now. So just
21:13
wanted to have a feel of it. So
21:15
yeah, just trying to come over and look at the
21:18
controller rides and all. Where have
21:20
you come from? We are from Wellington. Ah,
21:23
and what do you think of it? No, it's just
21:25
beautiful. It's amazing. It's great. So
21:28
you've been coming here for how long? Since
21:31
I was 12 years old and I'm now 60. How
21:34
do you feel about the uncertainty of things?
21:36
You know, the uncertain future of the ski
21:38
fields, but also the fact that the Chateau,
21:41
we don't know what's going to happen to that. Well, it's
21:43
an end of an era if it does
21:45
happen. And that's always, there's a sadness around
21:47
that. I kind of
21:49
understand the doubt because,
21:51
you know, the snowfall line
21:54
seems to be going up. And
21:56
the complication of the, you know,
21:58
the ewe and the dock. And
22:00
we've done some hiking here in the last
22:02
couple of days and it is pristine, it
22:04
is stunning and you do
22:06
see that a ski field is quite
22:09
invasive on a mountain but at the same
22:11
time I'm a skier so I love that
22:13
option of being able to also ski here
22:15
so it's complex. It's a shame that
22:18
particularly with the the
22:20
Chateau down here it's a real shame that
22:23
that's not operating because that's a landmark place
22:25
yeah and certainly with I don't know
22:28
whether it's global warming or not with
22:31
the seasons being a bit tricky
22:33
for the ski field that's pretty
22:36
tough yeah and
22:38
whether the government should be pouring money into it
22:40
or not I don't really know. Even
22:42
if we don't know what's going to happen to the ski field
22:44
you think it's got a future? It's
22:46
got a future, yes David it's an icon you
22:49
know it's a big mountain in the middle of the island
22:52
it's a real attraction yeah it definitely got a
22:54
future.
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