West Coast New Zealand

FIVE YEARS OLD - TIME TO CELEBRATE!

In May 2000 the Government agreed to make a one-off cash payment of $120 million to assist the West Coast economy to adjust to the Government’s policies on ending the logging of indigenous forest.

$92 million of this funding package was placed with The West Coast Development Trust, established on18 April 2001. The remaining $28 million was divided equally between each of the four local authorities Buller, Grey & Westland District Councils, and the  West Coast Regional Council.

The West Coast Development Trust’s task is to help create an environment for sustainable investment, economic development and employment for current and future generations of West Coasters.

The Trust’s priorities

The Trust promotes sustainable employment opportunities by making loans to local businesses and by investing in local business development to help the regional economy grow, thereby employing more local people.

The Trust generates sustainable economic benefits by investing in major regional developments, like primary food production, gold and coal mining and tourism, ensuring that the profits made from its investments stay on the Coast. Our Trust Deed does not allow us to invest in infrastructure – that is the everyday job of Councils and Government.

However, while the Trust is an economic development organisation, no economic activity operates in a vacuum. The Trust’s other priorities include active support for the community and the environment, building positive attitudes amongst the people and advocating to Government for more regional infrastructure, like roads and power and water, to ensure an overall balance to regional development on the West Coast.

How well has the Trust done?

The Trust’s actions are governed by a Trust Deed determined by the Crown. The Trust Deed provided for an audit review of overall Trust performance to take place five years after start-up; that review took place at the end of 2005 and the Trust received a positive report.

The Trust started in April 2001 with a Chief Executive Officer and two staff. The Board of Trustees, Advisory Body and tiny staff had to establish systems and policies for every aspect of the multi-million dollar operation, as well as carefully invest the initial funds to ensure a safe and satisfactory return to provide operating revenue for subsequent years. Usually, businesses grow steadily to become large organisations; the Trust started as a large organisation and then had to set up to grow!

There were many comments in the beginning about how hard it was to find out what the Trust was up to. Little wonder, our staff was so busy setting up there was hardly time to ‘get out and talk about’; the priority had to be to get a secure organisation structure and function first.

Steadily, conservatively, the Trust grew its assets, extended its network of relationships to other funding organisations, hired skilled staff and implemented its first five year Strategic Plan.

In April 2001, the Trust faced a challenging economic environment on the West Coast:

• High unemployment and few work opportunities
• Low economic growth for two decades
• Minimal property market growth
• Reduction in forestry opportunities
• Low mineral and commodity prices
• SARS and high oil prices affected tourism

Five years later the region has reversed the impacts of the previous 20 years.

Who has the Trust helped with funds?

Over 75 businesses, organisations and people who have received direct financial assistance from the Trust are listed in each year’s annual report. Many thousands have benefited indirectly – just think of the Wild Foods Festival, Kumara Races, Adventure Racing World Championships and many other events.

The next five year Strategic Plan

Our region has already achieved many of the Trust’s original goals, in a surprisingly short time frame.  In the next period 2006-2011, our Strategic Plan is to be a leading promoter, provider and facilitator of sustainable business investment, business support, regional economic development projects, employment opportunities, and education & training services in the region.

We will have a key role to play in contributing to our region’s growth in the global economy. We will also support organisations tasked with the necessary social, community and environmental strategies that are essential to reinforce the economic drivers.

We have a detailed Strategic Plan and an annual Business Plan to implement, defined right down to the level of individual tasks for Trustees, Advisory Body and staff.