$700k spent on failed whitebait farm plan

A $700,000 Government investment to help develop a whitebait farm on the West Coast is dead in the water after a year.

The Government’s regional development unit granted Buller District Council $2 million to get the whitebait farm up and running with commercial partner New Zealand Whitebait in March last year. The grant was dependent on the company securing $5m private equity – which it has failed to do.

The company says the Covid-19 pandemic was to blame for the failure of the project which was predicted to produce up to 100 tonnes of whitebait a year and employ 30 West Coasters.

A stakeholder advisory group was set up to oversee the project and approve how the money was being spent.

Group chairperson John Selby said the project was to be wound up as New Zealand Whitebait board was unable to raise the $5m necessary to build the fish farm at Westport.

‘‘While a number of investors were interested in the project, New Zealand Covid border restrictions made it difficult for them to see the brood stock pilot farm, meet key players and appreciate the unique taste of West Coast whitebait.

‘‘They were also uncertain as to when restrictions would be lifted and their ability to be involved in the build plan and growth of the business,’’ he said.

The Government’s Ka¯noa – Regional Economic Development and Investment Unit (Ka¯ noa-RDU) granted $200,000 to the council to fund project expenses and another $500,000 of seed capital which was matched by the shareholders, he said. ‘‘No Buller District Council ratepayer money was used to fund the company or the project,’’ Selby said.

‘‘The founders are continuing to work through other ways of establishing a whitebait fish farm and would again look at establishing a business in Westport if this made sense,’’ he said.

The Press has asked Ka¯noaRDU and Buller District Council for a breakdown of the spending and for all the monthly reports from the company which were discussed by councillors behind closed doors.

In a joint statement with the company and Ka¯ noa-RDU, Buller District Council said the people involved worked ‘‘so hard to give this unique Westport business venture every chance of success’’.

The proposal was to develop an environmentally sustainable whitebait farm in Westport with the potential of a creating a nationwide industry, it said.

The project had the backing of the backing of both Buller District Council and local iwi, Nga¯ti Waewae.

The $200,000 was spent by the council to oversee the development of the aquaculture project and establish a steering group that included local iwi, to provide management and oversight of the project.

Ka¯ noa-RDU also provided the council with $500,000 which was matched by New Zealand Whitebait, to help with ongoing business costs and project management arrangements for the aquaculture system.

‘‘This included keeping the whitebait brood alive and ready for breeding at another location.’’

Selby said the brood stock were still in the company’s pilot fish farm facility in Nelson.

The farm would have reduced pressure on declining natural stock and would have had strong export markets in Asia and Australia.