The Department of Conservation’s decision on whether or not to grant a concession to Tūroa buyer Pure Tūroa is imminent.
Newsroom understands the department will approve Pure Tūroa’s concession application, the last major hurdle before it can take control of the popular ski field – and go a step further by allowing it to lease buildings and other infrastructure.
Department of Conservation concessions, in the form of licences or leases, are essential to carry out business in the park.
It responded to a request for a timeline on Tuesday, saying Conservation Minister Tama Potaka, who originally hails from Raetihi in the shadow of the mountain, would be the decision-maker.
The department said Potaka was expected to make the decision within the next two weeks, although sources close to the process expect it could happen as early as today.
Potaka said he couldn’t comment on the concession process. “Any announcements on the matter will be made in due course.”
The previous operator of Tūroa – and Ruapehu’s other ski field, Whakapapa – Ruapehu Alpine Lifts was put into voluntary administration in October 2022, and liquidation in June 2023 after creditors failed to approve a path forward.
The Crown subsequently appointed its own receivers to the business, who are leading the sales process alongside the Government’s regional development agency Kānoa.
Once the concession is approved, Pure Tūroa will purchase the assets for $1 with the Crown taking a quarter stake in the business, as well as providing $3.05 million in funding.
Pure Tūroa is headed by Ohakune entrepreneur Greg Hickman and his Taupō-based business partner Cam Robertson.
Submissions to the Department of Conservation on issuing the concession closed on February 9, and hearings took place between February 22 and 27, meaning a decision made in the next two weeks involves a much more accelerated process than usual.
Previous concession applications to operate in the Tongariro National Park took several years to complete.
Iwi groups have consistently complained of a rushed process and warned they would seek a judicial review if they believed proper process, which includes thorough consultation with Māori, hadn’t been followed.
They have also warned the sale and concession process could compromise live Treaty settlements over the Tongariro National Park.
Licence v lease
If Pure Tūroa’s concession application is granted in the format it applied for it will involve a licence to operate and leases for certain buildings, infrastructure and zones.
Not opposed to Pure Tūroa ownership, Paul Green, a former chief ranger and Department of Conservation conservator for the Tongariro National Park, believes the shift to leases is concerning.
In its 70-odd years of operation, Ruapehu Alpine Lifts operated solely under a licence.
He said leases were an alienation or implied ownership over land that provided the right of exclusive possession, meaning it could be managed without regard or access from the general public.
The issuing of leases was giving away an area in the national park that just wasn’t necessary.
“Ruapehu Alpine Lifts never had any problems operating under a licence, that’s not why they got into financial trouble.”
Green said it wasn’t in the public’s interest, “What it means in effect is the company can stash equipment around untidily, more so than what they do under a licence, so it’s an impediment to the public.”
It would also bring greater administrative costs for all parties and he wasn’t sure why the Department of Conservation would be tempted to go for it.
While Tūroa is closing in on securing new owners, on the North side of the mountain, Whakapapa is struggling to find a way forward.
On February 3, at the same time as it broke the news that Pure Tūroa had signed an agreement to purchase the field, Newsroom revealed the buyer for Whakapapa had walked away.
Whakapapa Holdings was fronted by local industry veteran Dave Mazey – the ski field boss who previously merged the two fields when Tūroa was last in administration. It was financed by the South Island Office, an investment group led by another ski industry veteran Tom Elworthy.
It backed away in December after the Crown decided it was asking for an “excessive” level of support that would expose the Government to financial risk.
However, Elworthy said no one was going to step up and write a cheque for Whakapapa without significant Crown assistance because of the $14 million in gondola bond debt the new operator would assume, on top of other liabilities such as deferred maintenance.
