June 14, 2024
White Island Tours liquidated after reparations paid
Ngāti Awa Group Holdings director Paul Quinn says its White Island Tours subsidiary has paid court-ordered reparations of $5 million to victims of the Whakaari/White Island eruption, but the $517,000 fine was a step too far.
The Whakatane-based company has declared insolvency and was put into liquidation.
White Island Tours pleaded guilty last year to two charges laid by WorkSafe relating to the eruption in December 2019 that killed 22 people and injured 25,
“Fortunately we had taken out insurance cover to be able to meet any reparations order of the court, which we were able to do, and sadly we are the only party that has fronted in respect of the reparations,” Mr Quinn says.
As the company’s sole business was taking tourists to the island, the liquidation meant Ngati Awa Group Holdings had to write off the $8 million loan it made to buy what had been a well-established company.
Mr Quinn says before the eruption White Island Tours took comfort in annual audits by Work Safe New Zealand which gave the tours a clean bill of health.
Ngati Awa Group Holdings has a successful motel operation and will continue to invest in Tourism but he doesn’t see future investment in White Island/Whakaari.
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