Then, it had annual council funding of $2.81 million, and the move was hoped to save $900,000.
The Chronicle reported in March that about half of that had been achieved.
For 2026-27 the council’s economic development budget is $2.99 million, up from $2.24m the previous year.
However, council chief strategy officer Sarah O’Hagan said overall, economic development funding was down $577,000 from 2023/24.
W&P will receive about $1.8m for 2026/27, including tourism.
“Remaining economic development funding will go towards the (Whanganui) Festival of Design ($100,000), the iSite, and overheads.”
The agency’s new team began operating last February.
“They needed to knuckle down and go, ‘Okay, what are we going to focus on?’,” O’Hagan said.
“For the rest of last year, they sat down amongst themselves, with the business community, and with the chamber (of commerce, Business Whanganui).
“We are about to go into our elected member space with the outputs of that, to reset the strategy for economic development and the investment needed moving forward.”
As a CCO, W&P spent a lot of time and money on marketing, but “we’ve stopped that”, she said.
“The focus now is on our big levers, like our export market, future energy, technology capability, and design capability.
“We’ve become more strategic around the focus, rather than a scattergun, ‘eat everyone else’s lunch’ kind of approach.”
She said W&P now had six fulltime staff.
As a CCO, there were 17 staff.
Business Whanganui chief executive Helen Garner said W&P had done a good job with promotion, but that was only one element of economic development.
“When we talk about the really gritty stuff, what has been delivered, that’s where it gets murky,” she said.
“I would have expected to see some quantifiable shifts.
“Then you look at our statistics around median income and GDP [gross domestic product].”
According to Infometrics, Whanganui’s GDP averaged annual growth of 1.9% over the decade to 2025, compared with the national average of 2.5%.
Business Whanganui chief executive Helen Garner (left) and Whanganui District Council chief strategy officer Sarah O’Hagan. Photos / NZME
Per capita income was $27,644 in 2015, with the national average at $32,322.
In 2025, it was $46,937, with the national average at $57,350.
Garner said the community wanted to see results.
“How many people have approached you (W&P) for investment in the region, and how many progressed to actual investment?” she said.
“As an organisation that is paid for by ratepayers, I want there to be accountability.”
Whanganui Mayor Andrew Tripe said while the W&P team had done a good job, there was still work to do “to sharpen up” the council’s economic development function.
Its last economic development strategy was published in 2019.
“Pure commercial activity has very strong, hard metrics like the return on investment, but economic development can be a little more nebulous,” he said.
“We need KPIs [key performance indicators] that, ultimately, see more jobs, higher-paying jobs, higher household income, and businesses that are prosperous and productive.”
In the proposed Local Government (System Improvements) Amendment Bill, supporting economic growth and development “to meet the current and future needs of communities” remains part of the purpose of local government.
One council-led economic development project is a new four-star hotel in central Whanganui.
The Chronicle reported in May that the council was working with property and development strategists Veros to source potential investors, with $74,000 spent on the project to that point.
At the time, O’Hagan said engagement with interested parties was continuing, but there were “obvious strategic commercial sensitivities involved”.
“My take is that if we don’t look for opportunities for growth in our community, who will?” she said this week.
“When we grow, everyone benefits.”
O’Hagan said the council was not competing with Business Whanganui.
“There is room for both of us in town. We need to share our expertise appropriately.”
Garner said Business Whanganui, which represents 270 businesses, had taken on a council contract to deliver continuous improvement training, which focused on growing productivity in the region.
O’Hagan had been instrumental in improving relations between the council and the chambers, she said.
“Sarah is straight up, and I feel like we are building a high-trust relationship, which is super important.
“We need to start punching above our weight, or at our weight. Let’s just start punching.”
New terms of reference for W&P’s strategy will be presented to councillors at a meeting on August 6.
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.