Development West Coast Annual Report Released

Development West Coast (DWC) has released its annual report for the year ended 31 March 2024, highlighting significant achievements and record investment in West Coast enterprises amid economic volatility and political change.

Since its inception 23 years ago, the DWC Trust Fund, initially valued at $92m, has invested $197.4m directly into the West Coast economy, with its equity now at $146.9m. In real terms, however, after adjusting for inflation, the Fund’s current purchasing power is equivalent to $79.8m in 2001 dollars, underscoring the importance of balancing current needs with the long-term sustainability of the fund.

Chair Renee Rooney emphasised that DWC’s “thinking needs to be both current and visionary.” The change in government late last year was preceded by a full review of DWC’s Strategic Plan, leading to a renewed focus on increasing investments in West Coast-based enterprises that deliver commercial returns for DWC. This strategic shift resulted in a record $15.02m in commercial funding approvals.

As part of this approach, DWC provided a range of financing options to existing West Coast businesses such as Bright Print and Reefton Distilling Co. Finance was also directed toward projects aimed at addressing the region’s housing shortage to support the local workforce. Additionally, DWC made equity investments in innovative start-ups bringing new industries to the region, including Westland Mineral Sands Group and The New Zealand Refinery Limited, a boutique ethical gold refinery.

During the financial year, DWC allocated $2.4m to regional development and community distributions, including $200,000 to the West Coast Community Trust, which supported 20 diverse projects across heritage, sports, arts, youth, and more.

“The true value of DWC to the region goes far beyond direct economic investment,” said Chief Executive Heath Milne. “Our team is working tirelessly with local businesses to enhance capabilities and drive sustainable growth.”

During the year, DWC supported 395 actively managed clients—up from 345 the previous year—by helping them gain knowledge, build connections, and achieve growth. Attendance at DWC's business workshops and events increased to 1,076 from 852 the previous year. Additionally, the recently concluded Upskill employment and training scheme partnered with 67 West Coast employers, helping 277 candidates gain employment. Over its life, Upskill helped nearly 1,000 people into work. The programme’s significant impact was nationally recognised with a gold award for ‘Best Practice for Collaboration’ at the 2023 Economic Development New Zealand Awards.

As well as addressing the immediate needs of the region, DWC is committed to long-term projects and initiatives outlined in the regional development strategy, Te Whanaketanga Te Tai Poutini West Coast 2050 Strategy.

A concerted effort to boost the region's national profile led DWC to proactively secure 265 media placements both nationally and internationally, showcasing positive West Coast stories and generating around $2m in advertising equivalency value. This work earned DWC a gold award and four silver awards at the 2024 Public Relations Institute of New Zealand Awards.

Despite limited resources, the DWC Tourism team delivered remarkable results by executing effective marketing campaigns, engaging with trade partners to promote the region, and hosting a record 108 travel agents on familiarisation trips. Their efforts contributed to the West Coast recording the highest visitor expenditure growth in the country, with spending reaching $518m for the financial year—a 16.9% increase, outpacing the national growth rate of 7.4%.

To further strengthen and diversify the West Coast economy, DWC is actively collaborating with businesses and industries, including advancing key initiatives under the Nature Economy Project. Additionally, to help strengthen our communities and recognise the importance of retaining local talent, DWC has continued its Tertiary Scholarship programme, awarding four annual scholarships valued at up to $32,500 per student.

Despite rising interest rates and inflationary pressures, DWC’s investment portfolio achieved a total return of 10.24%, recovering the value lost in the previous financial year. The portfolio's growth was primarily driven by strong performances in International and Australian equities, which saw gains of 23.71% and 18.33% respectively.

Milne cautioned that much of the growth during the reporting period consisted of unrealised gains - “similar to the market fluctuations you see in your KiwiSaver account.” These unrealised gains contributed to DWC closing the fiscal year with a $6.8m profit, a turnaround from the previous year's $5m net deficit.

“The DWC investment portfolio is highly diversified, ensuring we remain in a strong position to fund future initiatives and continue to support the West Coast’s economic growth.”

Towards the end of the financial year, DWC conducted its annual client survey to assess its perception among the West Coast community and stakeholders. The results showed DWC’s net promoter score rising to +29—marking the fourth consecutive year of improvement since the survey’s inception in 2020.

“We always value feedback from our stakeholders and look forward to another year of close collaboration to unlock the business potential of the West Coast,” Milne stated.

The 2024 annual report is available to view on-line at www.dwc.org.nz

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