Turoa lifted from slippery slopes

The operators of Whakapapa skifield on Mt Ruapehu were yesterday given the go-ahead to buy their immediate competitor, Turoa, just 2 1/2 months after such a move was ruled to be unfair.

Competition watchdog the Commerce Commission reversed its earlier preliminary decision and ruled that the public benefits of Ruapehu Alpine Lifts buying Turoa outweighed the detriments.

The approval gives Ruapehu a monopoly on the mountain, but commission chairman John Belgrave said the public was likely to benefit long-term from cost savings, an increase in skier days, a seamless pass that covered the whole mountain, and a combined marketing effort targeting overseas visitors.

The decision ends an eight-month-long Turoa saga, after three bad seasons forced the skifield's operators into receivership this year.

The battle for Turoa has at times been emotional, with Ohakune businesses and residents claiming that the Ruapehu buyout was the only option that would ensure their town survived.

Receiver Gary Traveller, who steered Turoa through a better season this winter, confirmed that ski operators from France, Austria and Australia had also expressed interest in buying the asset.

It is the second time Ruapehu has tried to get approval to buy Turoa. Its first attempt was declined, on the grounds that it would result in a monopoly on the North Island ski market, giving the opportunity for unchallenged price increases.

Ruapehu's second attempt was accompanied by heavyweight submissions from the Institute of Economic Research and law firm Simpson Grierson.

Elated Ruapehu general manager Dave Mazey admitted that the Turoa field needed some work, but said he was confident the business would be successful.

Investing in snow machines would be one of the first moves, to overcome low-snowfall seasons.

They are likely to be funded through a limited-time offer of a lifetime ski pass.

The 3000 passes, selling for $2495 until mid-December, could inject $7.5 million into Ruapehu.

"It [the life-time pass offer] gives us the opportunity to cement the purchase of Turoa, and to start work on changes at the skifield," he said.

"The assets are in good condition, but four or five hard years on both fields mean additional facilities are required."

Mr Mazey would not say how much Ruapehu had paid for Turoa.

The combined skifields would give Ruapehu the chance to develop its marketing campaign overseas - especially Asia and Australia, he said.

A traverse between the two skifields will be constructed, and Mr Mazey has a long-term vision of an extensive chalet and entertainment facility to rival the South Island's.

"To those worried about price increases, I say they won't happen," he said.

"Shareholders in Ruapehu are skiers, and the money will go back into the fields, so they have nothing to fear."