Development West Coast

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Development West Coast is a charitable trust that operates in the West Coast region of New Zealand.

Origin[]

Development West Coast (DWC) has its origins in the controversy over logging native trees by Timberlands West Coast Limited, a former state-owned enterprise based on the West Coast. In the late 1990s, Timberlands' actions were supported by then-prime minister Jenny Shipley and opposed by environmental groups, led by Native Forest Action. The controversy became an election issue in the 1999 general election, with the Labour Party committing itself to stop logging. Investigative journalist Nicky Hager published a book, Secrets and Lies, just prior to the election, alleging that Timberlands had hired a public relations firm, Shandwick (now Weber Shandwick), to run a smear campaign against Native Forest Action.[1]

Labour won the 1999 election and stopped logging on the West Coast. The forests were transferred to the Department of Conservation and the West Coast region was compensated with an endowment fund of NZ$92 million. Development West Coast was set up in 2001 as a trust to administer this fund.[2]

Finances[]

In the 2015–2016 financial year, Development West Coast approved 20 loans worth a total of $14.4 million; in 2016–2017 it loaned $12.3 million to 18 businesses. It returned a profit of $5.3 million, after running a deficit in 2015. It had 11.5 staff positions and the Chief Executive was Chris Mackenzie, on a salary of $223,000.[3]

In 2021, in its 20th year, DWC's fund had grown from $92 million to $146 million. In 2019 it approved 80% of loan applications received, distributing $2.2 million, and gave $1.9 million to community projects.[4] In the year ending March 2021, it issued $6.7 million in loans, distributed $3.5 million to the community, and made a $14.2 million net profit.[5] It had 20 full-time staff under Chief Executive Heath Milne.[5]

Projects[]

In 2016 Fox Glacier received $1 million for a new community centre and the RSA in Hokitika $400,000 for a new hall.[3]

DWC is a shareholder in Te Ara Pounamu Ltd, which will spend $17.87 million developing new visitor centres in Westport, Greymouth, Hokitika, and Haast.[6]

In response to the COVID-10 pandemic in New Zealand and the loss of tourism revenue, DWC pledged $5 million to support businesses in Fox Glacier and Franz Josef. They approached Tourism Minister Stuart Nash for an additional $35 million in support, but Nash suggested DWC release 10 per cent of its fund instead, suggesting the "rainy day" it was set up for had arrived.[4]

References[]

  1. ^ "Campaign History ...The Story so far". Native Forest Action. Retrieved 19 August 2020.
  2. ^ Carroll, Joanne (7 September 2018). "Mayor 'seething' over Development West Coast's lack of action". Stuff. Retrieved 19 August 2020.
  3. ^ a b Mills, Laura (30 August 2017). "Development West Coast back in black after slashing consultants, admin costs and loans portfolio". New Zealand Herald. Retrieved 5 September 2021.
  4. ^ a b Naish, Joanne (4 March 2021). "Development West Coast's $128m fund for 'entire' region, not just Franz Josef". Stuff. Retrieved 5 September 2021.
  5. ^ a b Mills, Laura (31 August 2021). "DWC makes $14.2 million in revenue". . p. 1.
  6. ^ Carroll, Joanne (16 June 2020). "$18m for West Coast pounamu pathway". Stuff. Retrieved 19 November 2020.
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