Ruapehu skifield critic hits out
Sam Clarkson has been ‘‘at war’’ with skifield company Ruapehu Alpine Lifts for about 20 years and he is now at the forefront of a campaign to save the business that he relies on for his living.
Clarkson owns Skotel Alpine Resort, the country’s highest hotel, in Whakapapa Village at the foot of Mt Ruapehu. He is also a shareholder in the lift company and owns a life pass to ski on the mountain.
Last month, the Whakapapa and Tū roa skifield operator went into voluntary administration following doubts about its ability to pay back about $45 million of debt. It came after three years of skifield disruption due to Covid-19 and warmer La Nina weather that hindered snow production.
The business faces some unique challenges. On an active volcano in a National Park and Unesco World Heritage area, the skifield only produces income four months a year with weekend peaks and midweek troughs, and suffers from inclement weather, avalanche risk, historical underinvestment and threat from climate change.
Unlike southern fields, it isn’t near an international airport to pull in tourists.
But critics say it’s not the only high-risk business in the world and hasn’t been well run, citing inadequate governance oversight, lack of investment, monopolistic behaviour after combining Tū roa and Whakapapa, management disputes, failure to put aside money for a rainy day, and ramping up debt to fund a year-round gondola operation.
Administrators PwC declined to comment at this time on whether the company had been well run, a spokesperson said.
Clarkson says those running Ruapehu Alpine Lifts should have been better prepared for disruption as it has happened before – in 1995 and 1996 volcanic eruptions caused mud to flow through the Whakapapa skifield and covered the slopes with volcanic ash, followed by unfavourable La Nina weather.
‘‘They weren’t paying attention,’’ Clarkson says.
‘‘They had made no contingency allowances for it – it wasn’t the risk of another La Nina, it’s the inevitability of one. There was nothing more certain than it was going to come around again.
‘‘They weren’t putting any money away..’’
Clarkson is leading the Save Mt Ruapehu Skifields Group trying to stitch a deal together to keep the skifield operating with community ownership and support.
The group is encouraging supporters to vote in favour of an MBIE proposal for the 14,500 life pass holders to each put in $2500 plus an extra $250 a year for the next few years, to enable a new entity to operate the skifields in return for ANZ and the Crown writing down $28m of debt.
Responses are due on Thursday . The group is also petitioning the Ministry for Business, Innovation and Employment MBIE for ownership and governance roles for mountain users.
Clarkson has long been agitating for change in the way the company was run, repeatedly fronting at annual meetings with his concerns, to no avail.
He blames an ‘‘old boys network’’ on the board who he says stonewalled himself and others who were calling for more accountability.
Last year he stood for election to the board, knowing he wouldn’t get on. He says it didn’t help that life pass holders had no power despite tipping in significant funds, and that the Trust which held a controlling stake in the company was aligned with the board.
‘‘They would rather elect a dog turd than me,’’ he says.
Clarkson teamed up with accountant Robert Krebs, a specialist in financial modelling, who is also a shareholder, life pass holder, and third generation member of Ruapehu Ski Club.
They produced their own independent reports outlining the company’s financial performance and risks, but Clarkson says both Ruapehu Alpine Lifts and the Trust refused to distribute them.
He wasn’t alone in calling for change at the top.
Kerry McDonald, former chairperson at Bank of New Zealand, managing director of Comalco NZ, and vice president of the Institute of Directors, resigned from the board in frustration after a four-year stint in 2015.
Since resigning, McDonald has continued to publicly question the board at annual meetings.