There have been loud and persistent complaints about Milford Sound Tourism Ltd for paying dividends to shareholders while Milford’s infrastructure has been left to age and become dilapidated.
The company — funded by a levy paid by passengers on cruise boats, but which has been 98%-owned by boat operators Real Group and Skeggs Group — had argued that major investment was paused because it had an uncertain future.
It said it needed the security of a new long-term concession from the Department of Conservation.
This week, Conservation Minister Tama Potaka granted a concession until 2050, but its conditions are still unclear.
Destination Milford Sound chairman Mark Quickfall said it was a matter of "wait and see".
"It is important to make sure the correct funding is in place to address the shortcomings at Milford that we all know about.
"There is an opportunity to get the model right and go from there."
Milford Sound Tourism chief executive Haylee Preston said the concession’s conditions were "still to be negotiated, a process that is expected to take several months".
"Once this is finalised, we will then be able to move forward with infrastructure investment, planning and then, once the necessary consents are granted, development ... It feels like things are finally coming together."
Nearly a year ago, Milford Sound Tourism said the granting of a long-term concession would unlock $50million to spend on upgrades to the cruise boat terminal, parking and waste-water plants.
Various suggestions have been put forward over the past year by tourism operators regarding how funds for Milford Sound could be better raised and spent more fairly.
Complaints were lodged last year with the Commerce Commission about the alleged unfairness of Milford Sound Tourism dividends being paid to just two cruise operators.
The complaints — filed by Pure Milford and Cruise Milford were passed to Mr Potaka.
There has been no response to the complaints.
However, in December, it was announced 33% of Milford Sound Tourism’s shares would be transferred to Ngāi Tahu by the end of March.
Southland District Council has given up its 2% shareholding, leaving the remaining shares with Real Group and Skeggs Group.
Cruise Milford managing director Peter Egerton said the next step was to find out "if the conditions were going to be fair for all operators and whether standards of infrastructure would be raised".
Another operator, who asked not to be named, said they had given up working in Milford and were glad to be out of it.
"It is a stressful place to operate with an unclear future."
Mr Potaka said the statutory obligations that needed to be met in Milford included "ensuring conservation, safety and visitor management are properly addressed, including bringing facilities and infrastructure up to standard."
No decisions had been made as yet on specific funding mechanisms and there would be no release of immediate Crown funding.
He said the work would build on the findings of the consultative Milford Opportunities project "with transport and demand-management options, such as park and ride, a priority".
The work would sit alongside conservation law reform, which is considering new approaches to access charging and concessions.
