Due diligence work on the financial viability of Ruapehu Alpine Lifts has caused local iwi to withdraw their bid, saying the business case doesn’t stack up as is.
Concerns about the future of the ski fields were detailed in a letter sent by Ngāti Tūwharetoa Trust chief executive Nigel Chee to the head of Māori Crown Relations agency Te Arawhiti.
“We have undertaken commercial and legal due diligence with the support of KPMG and Bell Gully which has demonstrated that the ability for any operator to continue operating the ski fields requires a significant increase and expansion of operations for there to be commercial viability.”
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Chee said an expansion was incompatible with Ngāti Tūwharetoa’s values and ethos, and the due diligence also concluded that Ngāti Tūwharetoa didn’t have the risk appetite to lead a commercial proposal.
“Our investigations highlighted that there are key unknowns which mean that exposing iwi capital to a ski field without the Crown as a partner would be imprudent.”
Chee said Ngāti Tūwharetoa’s work with KPMG and Bell Gully had also highlighted it couldn’t consider the sale and purchase without considering the Department of Conservation concession licence and the settlement negotiations still to be undertaken for the Tongariro National Park.
According to the Tongariro National Park Plan, which has to be followed by the Conservation Minister in making any decision, tāngata whenua must be robustly consulted.
Chee said the process did not honour agreements outlined in its 2018 Treaty of Waitangi settlement and prejudiced its negotiations concerning the national park settlement.
Ultimately, the iwi’s process found it did not support the progression of the sale of the Ruapehu Alpine Lift assets.
“While the Crown may choose to pursue the track it has to date, we would prefer the Crown work with us to develop an acceptable transition plan that would operate until the successful conclusion of the Tongariro National Park settlement negotiations.”
The threat of legal proceedings to stay any sale was also brought up. “If our non-legal options are exhausted we will seek a comprehensive, evidence-based discovery process to identify and quantify the impact of the Crown’s preferred solution(s).”
The discovery process would be targeted at assessing long-term sustainability, examining commercial bidder and bid evaluation matters that may impact on its Deed of Settlement, concession license and restoration options for the maunga.
Sales process
Ngāti Tūwharetoa’s interest in purchasing Turoa and Whakapapa went public late in the sale process, with claims its interest in purchasing the assets hadn’t been adequately progressed.
The revelation spelled trouble for MBIE and administrators/liquidators PWC, and though the exact nature of why Ngāti Tūwharetoa’s interest wasn’t progressed is up for dispute, the Government has acknowledged that iwi engagement hadn’t been good enough.
The letter was signed by the then Regional Development Minister Kiritapu Allan, Treaty Negotiation Minister Andrew Little and Conservation Minister Willow-Jean Prime.
Though the company had been in voluntary administration since October, local iwi and hapū only had their first meeting with the regional development minister less than two weeks before the failed vote to approve sales options in June.
