'Lady of the Lake' steams on

A major facelift is planned for the Lakeland Queen. Picture / Daily Post

Rotorua's Lakeland Queen is set to steam into a new era, becoming the biggest land-locked vessel in New Zealand.

The paddle steamer has just been bought by the Agrodome and two Rotorua businessmen for an undisclosed amount.

Dubbed the "Lady of the Lake", the boat has for the past few months been moored at the Lakefront.

Mokoia Island Tours and Cruises - which operated the Lakeland Queen - had tried to attract big-spending tourists but Majpie Investments, the company behind the Lake Rotorua paddle steamer cruises, went into receivership, owing creditors more than $850,000.

A consortium of local entrepreneurs, calling themselves Lakeland Queen (2006) Ltd, have just settled with the receiver.

Receiver Anthony Harris would not reveal how much they paid for the business, saying it was up to the directors to disclose. According to the receiver's report, the Lakeland Queen had a sale value of $350,000.

Its new directors are Warren Harford, Paul Bowen, Jason Baker, all of the Agrodome, and Rotorua's Terry Hammond. The Agrodome has 51 per cent of the shares, Mr Hammond 40 per cent and Mr Baker 9 per cent.

Mr Harris said Majpie Investments' secured creditor, Waikato Finance, which is owed $265,000, would be paid. He did not know what would happen with debts owed to Inland Revenue and 17 unsecured creditors. It was unlikely all of the more than $850,000 owed would be paid back, he said.

Mr Harford described the Lakeland Queen as being synonymous with Rotorua. Given the expansion of attractions in the city, Rotorua was in a great position to meet the future needs of its community and visitors, he said.

"For these reasons and our immediate plans to extend the overall size of the paddle steamer to accommodate groups, we believe the Lakeland Queen has a positive and profitable future."

The paddle steamer is to have its makeover within the next two months. It will be cut in half and a new 10m section will be fitted, extending its length to 32m. The upgrade will also increase capacity from 148 to 266 passengers.

- DAILY POST