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From:
Stacey Wrenn
To:
Karl Woodhead
Subject:
Fwd: Liquidation questions [DC-DOCUMENTS.FID3371603]
Date:
Wednesday, 21 June 2023 8:34:32 am
Attachments:
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Hi Karl,
As discussed, please see the advice from Sec 9(2)(a)
about the liquidators operating
under RAL's concession. Please note this shared on the basis legal privilege is maintained.
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Cheers,
Stacey
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Sec 9(2)(h)
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From:
Karen Rainbow
To:
Michelle Paki; [email address]
Cc:
Sec 9(2)(a)
Subject:
Mt Ruapehu Skifield - Iwi Collective Hui 29th Aug
Date:
Wednesday, 23 August 2023 4:07:00 pm
Attachments:
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Kia ora Michelle and Joana
Just wanted to give you both a heads up that we have a collective iwi leadership hui for those
with connections to the maunga scheduled to take place on Tuesday 29th Aug in Ohakune. This
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hui has been requested by a number of iwi and Ngā Tāngata Tiaka particularly in order to give
them an opportunity to discuss their values and principles together and share their views on
what any new concession should consider for skifields on Mt Ruapehu. The format for the hui is
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that the collective leaders will meet from approx. 10-12pm, followed by lunch, and we (ie DOC
and our independent consultants Sec 9(2)(a)
), will join after lunch at about 1pm to
continue the discussions and hopefully confirm the pathway forward.
I wanted to give you both a heads up and see whether you would like to join us in the afternoon
to hear the korero, give any updates and contribute to the conversation if appropriate? I can
provide an MS teams link if you would prefer to join remotely. Those attending are: Ngā
Tāngata Tiaki, Uenuku, Ngāti Rangi and Ngāti Haua. We will be holding another separate hui
with Ngāti Hikairo over the coming weeks to discuss the Whakapapa concession further, but they
won’t be attending this collective hui on Tuesday.
INFORMATION
Please just let me know and I can forward the invite.
Ngā mihi
Karen Rainbow / Statutory Manager – Central North Island
OFFICIAL
Department of Conservation Te Papa Atawhai
Taupo Office | Central North Island Region
37 Motutaiko Street, Taupo
Ph.
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Sec 9(2)(a)
Email: [email address] | www.doc.govt.nz
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The remainder of this email chain is out of
scope
From:
Steve Brightwell
To:
Sec 9(2)(a)
Tara Allardyce; Carl Walrond; Josh Hercus; Erin Hill
Cc:
Kate Wevers; Cameron Tyson; Sec 9(2)(a)
Subject:
RE: RAL - Concession Process and Changes
Date:
Friday, 11 August 2023 4:17:21 pm
Hi Sec 9(2)(a)
On our side we have only conveyed what is required verbally, however, we provided edits to the
draft Kanoa/Calibre letter to potential purchasers that went out yesterday which described the
process as being for a new concession and needing an application.
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Josh or Erin (copied) should be able to confirm if that was what went out in the final version.
Ngā mihinui
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Steve Brightwell
Principal Advisor Operations Issues
Department of Conservation
WHAKATĀNE
Sec 9(2)(a)
Sec 9(2)(h)
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The remainder of this email chain (three pages)
is withheld in full under section 9(2)(h) of the OIA
From:
Ruth Isaac
To:
Erin Hill; Marie Long; Karl Beckert; Jonty Somers
Cc:
Isabel Poulson
Subject:
RE: RAL restructuring urgent cabinet paper
Date:
Wednesday, 2 November 2022 10:14:05 pm
Attachments:
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Hi Erin
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Thanks for your email. We will have to consider how best to respond to this request – I think the
advice on this needs to sit with DOC/MOC as it relates to the Conservation legal framework, including
any options advice/development, so thanks for reaching out.
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We will come back to you with an initial response/thoughts by end of this week.
Ngā mihi
Ruth
Ruth Isaac
DDG Strategy and Policy
Department of Conservation
Mobile +64 Sec 9(2)(a)
INFORMATION
From: Erin Hill <[email address]>
Sent: Wednesday, 2 November 2022 10:32 am
To: Ruth Isaac <[email address]>
Cc: Isabel Poulson <[email address]>
OFFICIAL
Subject: RE: RAL restructuring urgent cabinet paper
Kia ora Ruth
THE
Thank you so much for your help on the RAL Cabinet paper last week. I was hoping to work with you
(or someone in your team) on another request. We’ve been asked to consider if there’s any way we
can remove or reduce the liability the Crown would face regarding the “make good” provisions on Mt
Ruapehu, in the event RAL (or another operator in the future) were unable to fulfil the “make good”
provisions. UNDER
I’m keen to understand if you have any existing tools in your toolkit and discuss possibilities/options.
We don’t have a set report back date for Cabinet, but I’d like to include at least high-level/general
information on this when we do. This may be the 14th , but this is not set in stone at this stage, as it
will be dependent on how the other negotiations go.
I’m happy to discuss if that’s easier than email.
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Thank you,
Erin
Erin Hill (she/her)
Principal Advisor
Strategy, Planning and Performance Branch
Kānoa – Regional Economic Development and Investment Unit
Ministry of Business, Innovation & Employment - Hīkina Whakatutuki
[email address] | Telephone: +64 Sec 9(2)(a)
PO Box 1473, 15 Stout Street, Wellington 6140, New Zealand, www.mbie.govt.nz
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From: Ruth Isaac <[email address]>
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Sent: Wednesday, 26 October 2022 1:59 pm
To: Erin Hill <[email address]>
Cc: Isabel Poulson <[email address]>; Karl Beckert <[email address]>; Marie Long
<[email address]>
Subject: RE: RAL restructuring urgent cabinet paper
Thank you so much Erin – that is great teamwork.
From: Erin Hill <[email address]>
INFORMATION
Sent: Wednesday, 26 October 2022 12:46 pm
To: Ruth Isaac <[email address]>
Cc: Isabel Poulson <[email address]>; Karl Beckert <[email address]>; Marie Long
<[email address]>
Subject: RE: RAL restructuring urgent cabinet paper
Kia ora Ruth
OFFICIAL
Thanks for all of your feedback. I’ve attached the version of the paper sent to the Minister’s office
today for your information.
THE
Please let me or Isabel know if you have any concerns.
Thanks,
Erin
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Erin Hill (she/her)
Principal Advisor
Strategy, Planning and Performance Branch
Kānoa – Regional Economic Development and Investment Unit
Ministry of Business, Innovation & Employment - Hīkina Whakatutuki
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[email address] | Telephone: +64 Sec 9(2)(a)
From: Ruth Isaac <[email address]>
Sent: Wednesday, 26 October 2022 10:17 am
To: Erin Hill <[email address]>; [email address]
Cc: Isabel Poulson <[email address]>; Karl Beckert <[email address]>; Marie Long
<[email address]>
Subject: RE: RAL restructuring urgent cabinet paper
Importance: High
Thanks Erin. DOC doesn’t have any concerns with what is proposed, but we strongly advise that
Cabinet should have some wider context around the liabilities/risks to the Crown arising in the DOC
space given the area is a national park and over which we provide significant concessions for
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operating activity on the mountain.
This could be added as a separate section perhaps, titled “
Wider Crown risks and liabilities”?:
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RAL liability – potential remediation liability to the Crown $50m plus
RAL operate the ski fields under two concession agreements granted by the Minister of
Conservation. The Whakapapa concession expires in 2046 with rights of renewal of up to 30
years, and the Turoa concession expires in 2042 with rights of renewal of up to 25 years. Under
the terms of the concessions, RAL is responsible for removing all infrastructure from Tongariro
National Park and remediating the land (
make good clause). s9(2)(g)(i)
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Crown revenue from RAL
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RAL currently pays Sec 9(2)(b)
(ii)
of their gross revenue as an annual concession fee. This fee is Crown
revenue. Prior to COVID-19, RAL were paying approximately Sec 9(2)(b)(ii)in annual concession fees.
Happy to discuss – please contact Karl Beckert direct for any discussion or info on above given your
timeframes!
Ngā mihi
Ruth
Ruth Isaac
DDG Strategy and Policy
Department of Conservation
Mobile +64 Sec 9(2)(a)
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From: Erin Hill <[email address]>
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Sent: Tuesday, 25 October 2022 5:16 pm
To: [email address]; Ruth Isaac <[email address]>
Cc: Isabel Poulson <[email address]>
Subject: FW: RAL restructuring urgent cabinet paper
Kia ora Mario and Ruth
Please find attached an initial draft of the RAL Cabinet paper (Government support for an alternative
solution for continued operation of the ski field at Mt Ruapehu) for your review. Thank you for your
help with this in such short deadlines.
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We are required to provide a draft to our Ministers Office by noon tomorrow, so I’d appreciate your
feedback as early as possible tomorrow morning, ideally before 9.30am. Please feel free to call me, or
Isabel (Sec 9(2)(a)
if that’s faster than written feedback.
FYI Treasury has also been consulted. Also – please be aware that there is significant commercial
sensitivity around this paper. Please do not share this paper wider than necessary and ensure that
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anyone you do share the paper with is aware of the sensitivities.
Kind regards,
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Erin
Erin Hill (she/her)
Principal Advisor
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Strategy, Planning and Performance Branch
Kānoa – Regional Economic Development and Investment Unit
Ministry of Business, Innovation & Employment - Hīkina Whakatutuki
[email address] | Telephone: +64 Sec 9(2)(a)
PO Box 1473, 15 Stout Street, Wellington 6140, New Zealand, www.mbie.govt.nz
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Item 2
Read
Departmental
Briefing
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In Confidence
GS ref: 23-B-0304
DOCCM: DOC-7394609
MBIE ref: 2324-XXXX
To:
Minister for Regional
Date:
28 July 2023
Development, Minister of
Conservation
INFORMATION
Ruapehu Alpine Lifts (In Liquidation) concessions process and
Subject:
Out of Scope
Action
To note options outlined in the paper to addressOut of Scope
sought:
Time Frame:
4 August 2023
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Out of Scope
Department’s
Very High
Risk
Priority:
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Assessment
Level of Risk:
High
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Note: Appendix 2 is withheld
in full via section 9(2)(h) of
the Official Information Act
Contacts
First
Principal
Name and position
Cellphone
contact author
Sec 9(2)(a)
Marie Long DDG, National Programmes and
✓
Regulatory Services, DOC
Robert Pigou, Deputy Chief Executive and Head
of Kānoa – Regional Economic Development &
✓
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Investment Unit (Kānoa), MBIE
Jonty Somers, Chief Legal Advisor, DOC
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Steve Brightwell, Principal Advisor, DOC
✓
Erin Hill, Principal Advisor, Strategy, Planning &
Performance, Kānoa, MBIE
Executive summary – Whakarāpopoto ā kaiwhakahaere
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1.
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2.
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3.
DOC wil be engaging with iwi and hapū to ensure that iwi and hapū have adequate
opportunity to raise issues and provide feedback on the proposed concessions, to
ensure that DOC is well-informed about iwi and hapū views prior to making decisions,
and to ensure that DOC complies with its legal obligations in s4 of the Conservation
Act 1987 (to give effect to the principles of the Treaty of Waitangi). DOC will also need
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to ensure that the process meets all other requirements of the Conservation Act. New
concessions will also need to be acceptable to the new operator(s).
4.
The concessions application and draft concessions will be publicly notified. Early
feedback has revealed iwi and hapū expect some concession changes and time to
properly consider the proposals. Public notification will take a minimum of four months
following an application for the concession. Ministers for Regional Development,
Treaty of Waitangi negotiations, and Conservation have expressed their views in
writing to iwi that officials will work with iwi differently, keeping iwi fully informed at
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every step.
Out of Scope
5.
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6.
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7.
Sec 9(2)(g)(i)
8.
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9.
10.
An inability on the part of the liquidators to operate through to the end of the concession
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process risks an early closure of the ski-fields with attendant costs falling on DOC.
Potential buyers may also walk away from the table leaving the Crown with an
obligation to remove ski-field infrastructure at a conservative cost of between $44M
and $87M, and at risk of legal action from disgruntled parties.
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13.
DOC wil continue to work with iwi and hapū to incorporate their feedback into draft
concessions documents and plan for public notification once a preferred operator(s)
has lodged its application.
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Purpose – Te aronga
1.
The purpose of this briefing is to:
• provide an analysis of options for a new operator(s) to potentially acquire
concessions for the Tūroa and Whakapapa ski-fields
• Out of Scope
Background and context – Te horopaki
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2.
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3.
On 26 June 2023, Cabinet Out of Scope
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. This decision was made to allow time for:
• DOC to conduct an appropriate process, including consultation with iwi and
hapū, to consider a new operator(s) potentially acquiring the concessions.
• Out of Scope
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4.
DOC officials were previously of the view that it might be possible to conclude the
process for considering the new operator(s) potentially acquiring the concessions by 1
July 2023, unless issues were raised through engagement that were unable to be
resolved by this date.
5.
As it transpired, consultation revealed:
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6.
All iwi require further time to consider how their interests should be reflected in the
Whakapapa concession;
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7.
8.
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Potential acquisition of Tūroa and Whakapapa concessions by a new operator
Public notification
9.
The proposed new operator(s) will make an application under the Conservation Act for
a new concession. Applications for concession leases or licences must be publicly
notified unless they fall within a narrow exception. Sec 9(2)(h)
10. Further, DOC is proposing that the new concessions will (if granted) contain some
different terms compared with the current concessions. The proposed amendments
currently contemplated include:
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• Changes to improve how the concessions are administered (for example,
clarifying that the definition of ‘visitor’ includes both skiers and sightseers, as
this is currently ambiguous).
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• Sec 9(2)(j)
•
• Sec 9(2)(g)(i)
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11. Under the Conservation Act, DOC needs to know the identity of the proposed new
operator before the application can be publicly notified. DOC cannot notify a mere intent
that an undetermined operator will apply to acquire the concessions. This means DOC
needs to wait until the liquidator determines its preferred operator(s), and the preferred
operator(s) makes an application for the concessions before DOC can publicly notify
that application.
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Proposed process and timeframes
12. DOC expects the process for the new operator(s) to acquire the Tūroa and Whakapapa
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concessions to be as follows (also shown as Appendix One):
Step
Work
Details
Timeframe
• Out of Scope
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Approximately eight
Determine preferred
a.
weeks (steps a to c),
operator(s)
•
from 26 June 2023
•
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•
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Iterative process, building on
Continue to consult
consultation to date. Some (but not
b.
with iwi and hapū
all) consultation may be alongside
Te Ariki Tā Tumu Te Heuheu.
Draft concession
Incorporating iwi feedback and other
c.
documents
changes recommended by DOC.
Receive application
d.
by new operator(s)
for the concessions
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Publicly notify
application and
Public notification for 20 working
e.
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concession
days.
documents
Review submissions
Four months (steps
f.
and hold public
d to h), to December
hearings
2023
Includes analysis of information
Preparation of final
presented at hearings and advice to
g.
concession
decision maker. Consultation with
documents
iwi and hapū ongoing.
DOC recommends the decision is
INFORMATION
Decision on
made by a delegated senior DOC
h.
proposed
official (Director-General or Deputy
concessions
Director-General).
13. DOC has developed this process to ensure it is working as efficiently as possible while
also running a robust regulatory process that meets the requirements of DOC’s
legislative framework. It is expected to take four months to run the regulatory process
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after the liquidator determines its preferred operator(s), and consultation with iwi and
hapū on the draft concessions documents has been completed. Changes to the
concessions may vary depending on who the operator is.
THE
14. These timeframes are significantly shorter than DOCs usual timeframes, and do not
include contingencies. It is possible that these timeframes may need to be longer
depending on who the proposed new operator is and the issues that arise through
engagement with iwi and hapū and public consultation.
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16.
17.
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18. Out of Scope
19.
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20.
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Options to address emerging risk if funding is insufficient to cover running
costs prior to new concessions being in place [this section contains legal advice]
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22.
23.
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Sec 9(2)(h)
24.
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25.
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26. Officials therefore see the only prudent course of action is to bridge the potential funding
gap, if it is needed, to enable the liquidators to continue operating the ski fields to the
end of 2023 and the likely conclusion of the concessions process.
27. Options to bridge the potential gap are set out below. MBIE officials will provide further
detailed advice, and recommendations on a proposed way forward, in separate,
subsequent advice to the Minister for Regional Development.
Out of Scope
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28. Out of Scope
29.
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30.
31.
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32.
33.
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34.
2) Out of Scope
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35. Out of Scope
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36.
37.
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38.
39.
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Out of Scope
3)
THE
40. Out of Scope
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42.
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43.
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44.
45.
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46.
Risk assessment – Aronga tūraru
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47.
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48.
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49.
50. Sec 9(2)(h)
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51. Despite DOCs best efforts there is a risk that the concessions process will be delayed.
The timeframes proposed are significantly shorter than DOC’s usual timeframes, and do
not include decent contingencies. To achieve these timeframes, DOC officials will be
working with external planners with existing relationships with iwi and hapū. DOC wil
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also have senior leadership overseeing the process and ensuring the work is resourced
and prioritised appropriately.
52. Iwi and hapū may not hold a collective view on changes to the concessions.
Sec 9(2)(g)(i)
Regardless of the operator, DOC
will need to ensure it is fully informed of all iwi and hapū views when recommending
changes to the concessions by engaging with iwi and hapū throughout the process.
Sec 9(2)(g)(i)
53.
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54. Sec 9(2)(f)(iv)
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55. Sec 9(2)(h)
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56.
OFFICIAL
57. Regardless of source, additional funding to support the Tūroa and Whakapapa ski fields
to operate while the concessions process is completed reduces the amount of funding
available for Regional Development projects or for emerging priority events if
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BBC/PCCA is used.
Treaty principles (section 4) – Ngā mātāpono Tiriti (section 4)
58. If DOC sought to further expedite the concessions consideration process, DOC risks
both a legal challenge under s4 of the Conservation Act and setting back relationships
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with iwi and hapū that are essential for the delivery of DOC’s core conservation work.
The level of risk however ultimately depends on whether meaningful consultation and
fully informed decisions can be made within the relevant period.
Out of Scope
59.
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Financial implications – Te hīraunga pūtea
Out of Scope
60.
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61.
Sec 9(2)(h)
A breakdown of the process that resulted in temporary
suspension of activities on the mountain would have financial implications for DOC in
managing its health and safety obligation. In the event of there being no new operator –
the worst-case scenario – this would result in the Crown being liable for ensuring the
mountain was restored to its natural state, conservatively estimated at $47 to $88 million.
62. Out of Scope
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Next steps – Ngā tāwhaitanga
Out of Scope
63.
64.
DOC wil continue to work with iwi and hapū to incorporate their feedback into draft
concessions documents and plan for public notification once a preferred operator or
operators have lodged their application.
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