The Ruapehu Skifield Stakeholders Association have long acknowledged the complexity of the Ruapehu Alpine Lifts Limited insolvency and the difficult task of determining a long-term solution for the operation of the skifields at Whakapapa and Tūroa. While we acknowledge the significant efforts of PwC and MBIE, and the commitment of the various bidders, we have always been of the view that privatising the skifields in the face of ongoing Iwi settlements and with such a sacred taonga is highly problematic.

Deed Administration is a safe pair of hands

The Stakeholders Association, on behalf of its members, has submitted a proposal to the Minister, MBIE and PwC to restore the existing company to trading under Deed Administration. This proposal is no more costly for the Crown than the proposals to privatise, but would preserve the assets in public ownership while Iwi and the Crown work through settlements. Restoring the community-owned non-profit structure also provides the foundation for a durable intergenerational solution.

Deed Administration is a supervisory period during which a company’s affairs can be independently monitored (by a Deed Administrator) while the company focuses on improving operational efficiency, upgrading governance, and sorting out appropriate capitalisation.

The ten thousand Life Pass Holders have volunteered (through surveys conducted by MBIE and independently by the Stakeholders Association) to contribute a reactivation fee or settlement payment that would help stabilise and support the skifields. Additional long-term products (such as multi-season passes) and external investment can support the revived operations.

Community Ownership is the most robust model

The privatisation proposed throughout the process is not fit for the wider context of the Ruapehu skifields. The skifields recently enjoyed their seventieth anniversary as a customer-owned non-profit and have traded through many years of ups and downs. The community ownership model has proven durable and able to raise significant capital when needed (until recent Covid lockdowns and government over lending).

Community ownership is the most appropriate model for the Ruapehu skifields because it balances the need to respect the mountain and local community with a passion for long-term survival of the operations. An evolution of the model may involve a mix of Iwi ownership, external investment, and modernised ski community investment (through mechanisms such as equity crowdfunding or an initial public offering).

A key aspect of ownership, participation and investment from across the ski community is the loyalty and willingness of the ski community to invest money and resources to support the skifield in both good times and in bad.

A copy of the Letter to the Minster, Deed of Company Arrangement and supporting materials are available through the Save Mt Ruapehu website.

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