The government has decided to advance a further $6 million bridging funding to allow time for MBIE through Kanoa-RDU to support the development of an alternative commercial solution.

“Following discussions with affected stakeholders, including other creditors and iwi, it has become clear that more time is needed to further explore our options to avoid liquidation. This additional funding will allow this to occur.

“This comes following the survey of Life Pass Holders, which indicated some support, but fell short of the funding required to support a new entity to operate the Tūroa and Whakapapa ski fields, which means more time is required to secure funding for a new entity.

“We will provide $6m to enable alternative solutions to be developed and provide sufficient working capital to retain the RAL management team while a potential resolution continues to be negotiated. This is in addition to the $2 million already extended to RAL from the Crown.

“By providing this bridging finance we will be able to maintain staff who are critical to the maintenance of the assets on the mountain, and enable it to operate next winter.

“We are fully invested in exploring all options as we recognise the significant detrimental impact on the both the economies and wellbeing of local communities especially Ohakune.

“Any decision regarding the future of operations on Mt Ruapehu needs to be considered and robust, but also realistic about the ongoing cost of such operations,” said Stuart Nash.

On Friday 18 December, the Ministry of Business, Innovation and Employment (MBIE) asked the RAL Voluntary Administrators to forward a letter and non-binding survey form to RAL Life Pass Holders to find out how many would provide funding support if a proposed new entity went ahead. The new entity would operate the Tūroa and Whakapapa ski fields, including the Sky Waka gondola. The survey closed on Thursday 24 November.

In order to raise the necessary funding, this would require a positive response from at least 6,000 Life Pass Holders (or a little over half of the estimated 11,000 active Life Pass Holders, all of whom were sent the survey).

· 4,494 Life Pass Holders responded to the survey.

· 2,937 indicated they were willing to contribute $2,500 now

· Of those respondents that indicated a willingness to contribute $2,500 now, 2,614 responded that they were willing to contribute $250 per annum for the next two or three years

· This represents a potential $7.34 million now and $0.65 million per annum of new funding from Life Pass Holders.

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A separate, independent survey of the general public undertaken by the Ruapehu Alpine Lifts Voluntary Administrators is understood to show there is potential for additional capital to be raised from this group. Further investigation would need to be undertaken to assess whether these results could be materialised, given the broad nature of the survey.

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