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The downward spiral of Ruapehu's commercial infrastructure

The downward spiral of Ruapehu's commercial infrastructure

Released Thursday, 4th April 2024
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The downward spiral of Ruapehu's commercial infrastructure

The downward spiral of Ruapehu's commercial infrastructure

The downward spiral of Ruapehu's commercial infrastructure

The downward spiral of Ruapehu's commercial infrastructure

Thursday, 4th April 2024
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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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