New Zealand Government to back Ruapehu Alpine Lifts operations with further $7.35 million

The New Zealand Government is to back the financially troubled Ruapehu Alpine Lifts (RAL) with a further $7.35 million in funding.

Representing the fourth cash injection from the Crown in a year, Monday’s announcement is aimed at allowing to continue operating while it is hoped that liquidators PWC will find a buyer for the business’ assets.

The funding will be split with $4.3 million being a loan to continue operating both the Tūroa and Whakapapa ski fields until the end of March 2024 and $3.05 million to the preferred bidder of the Tūroa ski field (Pure Tūroa Ltd) to purchase and operate RAL assets on the Tūroa ski field, subject to being granted a concession.

Explaining yesterday’s Cabinet decision, New Zealand Regional Development Minister, Kieran McAnulty "we have chosen an option that allows things to roll over.

"We have got locals, councils, iwi and businesses all relying on the mountain. We've had a really successful ski season and we did not want uncertainty in a political period over an election so all options are on the table and we have not said 'no' to any one of them."

Minister McAnulty noted that it give stakeholders "a bit of breathing space", adding that the funds "will help cover critical maintenance undertaken during the summer and provide additional certainty for the community."

RAL went into voluntary administration last year with debts of $45 million.

Earlier this year, the New Zealand Government promised up to $5 million to RAL’s liquidators of to ensure the 2023 ski season could go ahead.

Image: Snowboarding on Mt Ruapehu Alpine Lifts. Credit: Ruapehu Alpine Lifts/Tommy Pyatt.