Concerns raised at 30% hike in leases

Skiing body fearful of affordability, but minister says changes are needed, stop ‘scaremongering’

LEASE UP: Mt Buller's private club lodges face rising lease costs. PHOTO: Andrew Railton

MARKET failure for alpine resort lodges and lease holders is on their doorstep, according to Victorian Snowsports Association (VSA) president Rob Anderson.

Mr Anderson issued the warning last week in response to the announcement of massive increases in leases set by the Minister for Environment and Climate Change Ryan Smith.

“Mr Smith has stunned Victorian resorts’ ski clubs and flat owners with his decision to increase leasing charges by 30 per cent on Alpine Resorts Commission (ARC) and Victorian Snowsports Association Leases,” Mr Anderson said.

The 30 per cent increase, to be backdated to November 1, 2013, is the maximum permissible under the industry-wide ceiling level as set out in the ARC/VSA lease agreement.

Many of the lease agreements affected were set in place in 1990 with a 24 year life and came up for review this year.

The increase is payable in full in the first year, and not phased in by instalments as has been the case in the past, and is in addition to CPI increases.

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