$140m funding boost for West Coast
THE Government yesterday announced a $140 million package for the West Coast — the largest since Development West Coast was formed when native logging ended in 2000.
Prime Minister Jacinda Ardern was in Greymouth, Hokitika and Westport to make the announcement, alongside Regional Economic Development Minister Shane Jones and West CoastTasman MP Damien O’Connor.
The TranzAlpine passenger train was the biggest winner with $40 million for new carriages.
Broadband, Westland Milk Products and Punakaiki got significant investments, as expected, but a more surprising one was garnets at Ruatapu, with the promise of 50 jobs.
Tourism was the biggest win ner, with five initiatives getting funding including hot pools at Punakaiki.
With its $40 million, KiwiRail can introduce a new premium service and add two more carriages during peak periods. Platforms and booking systems will be upgraded.
As expected, there is $25.6 million for Dolomite Point in Punakaiki, focusing on improved visitor facilities and visitor experience, and $9.36 million to build the Kawatiri Coastal Trail between Westport and Charleston.
The Oparara Arches gets $5.7 million to improve visitor facilities and environmental protection, and there is a $3.3 million loan to build hot pools and spa facilities above Punakaiki Resort.
The Croesus Road, which leads to the new Paparoa Great Walk, gets a $3.5 million upgrade,
Another loan was made to Westland Milk.
The company is constructing a $22 million plant in Hokitika specifically designed for ‘‘madetoorder’’ segregation of milk types.
Westland Milk chief executive Toni Brendish said segregated production of specialty milks was a key component of Westland’s fiveyear strategy, which included expanding capacity to produce highvalue products.
There was also potential for other segregated products such as grassfed, pure Jersey, goat or sheep milk, or even plantbased nutrition, Mr Brendish said.
Dairy generated more than 14.3% , or $234.4 million, of the West Coast’s gross domestic product in 2016 alone and 9.2% of the region’s workforce, not including shareholder farmers and their employees.
The surprise was a $10 million loan for garnet mining at Ruatapu. Mr Jones said up to 50 permanent, highpaying jobs would be established through the Ruatapu Garnet Project, as well as boosting support industries such as transport and trades in the region.
Alluvial garnets are mainly used as an industrial abrasive — such as waterjet cutting or in products such as sandpaper. The mineralbearing sand will be collected using a frontloader digging operation and the garnets will be separated with machinery based at the Ruatapu site.
The project will be developed on privately owned land in Ruatapu, near Hokitika.
The repayable, interestbearing loan from the Provincial Growth Fund is contingent on Barton NZ Ltd successfully completing the resource consent and Overseas Investment Office processes.
Other sizeable investments included $22 million for broadband between Fox Glacier and Lake Hawea; $5 million to extend and improve mobile coverage on the West Coast; and $4.8 million to expand rural broadband and plug cellphone coverage gaps. Mr O’Connor said the $140 million would boost the regional economy and add greater value to existing businesses. — Greymouth Star
AUCKLAND: Brewer Moa Group has reported a slightly narrower firsthalf loss on improved sales and reduced administration and marketing costs.
The firm is aiming to break even at the operating level in the current six months. Yesterday it reported a $1.4 million loss for the halfyear to September, compared with a $1.5 million loss a year earlier.
Net revenue, after excluding excise, was marginally higher at $4.6 million, reflecting the end of a distribution deal with Parrot Dog late last year.
Including excise but excluding Parrot Dog sales a year earlier, Moa said revenue was 21% higher at $6.19 million.
Losses before interest, tax, depreciation and amortisation narrowed to almost $1.2 million from almost $1.3 million a year earlier.
Executive chairman Geoff Ross said the firm continued to work at being break even for the final half of the March financial year and summer trading to date had been ‘‘broadly in line with expectations’’.
‘‘Myself and the board are optimistic with the strategic direction of the business and the success we are having in the New Zealand market. Our role is clear, which is to continue to build strong top line, with a real focus to drive towards profitability, and find creative solutions for building scale through partnerships like we have secured with Constellation Brands in New Zealand.’’
Aucklandbased Moa was founded in 2003. It has reported losses consistently since listing in November 2012 after an initial public offering at $1.25 a share that raised $15 million.
The shares last traded at 43 cents and are down about 10% this year.
Yesterday’s accounts show the firm, which raised a net $2.6 million through a June share placement, had a net cash outflow from operations of $2.65 million in the period, up from $1.45 million a year earlier.
Cash at the end of September was $793,000, compared with $1.5 million a year earlier and $987,000 at the end of March.
New Zealand revenue, including excise, increased to $5.7 million during the six months, from $5.3 million a year earlier. The operating loss was barely changed at $1.1 million.
Export revenue in the period fell to $473,000, down almost 10% from a year earlier, although losses narrowed to $60,000 from $177,000 a year earlier. —