Major set-back to Grow Boating initiative

by Jeni Bone on 1 Sep 2008 Following careful monitoring of the financial, operational and administration of Grow Boating Australia, the directors on August 28 reluctantly placed the company into administration.

Melbourne-based chartered accountants, Dye and Co. Pty. Ltd., have been appointed as administrators effective immediately.

Grow Boating Australia Limited was established to promote the boating lifestyle and improve the boating experience, its ultimate objective aimed at increasing boating participation and sales.

In early August 2008 i what was described at the time as 'the biggest split the industry has ever seen', CEO James Wilson left Grow Boating and Chairman, Paul Phelan resigned from the board and other directors of Grow Boating who have resigned are David Hazlett (treasurer), Wesley Moxey, John Temple and Greg Haines left the board too.

They were replaced as directors by David Heyes (BRP Australia), George Bolton (BIA SA) and Gordon Howlett (BIA Victoria) are to be added to the board.

Earlier, Australian Marine Industries Federation (AMIF) president, Mr Barry Jenkins, and president of the Boating Industry Association of NSW, Mr Doug Olding, both directors of Grow Boating, expressed dissatisfaction with its progress.

On August 7th 2008 the company ceased to trade.

Today Chairman of Directors, Barry Jenkins, said an independent audit had revealed Grow Boating Australia would be unable to honour its committments.

'The company has accumulated substantial unauthorised debts and given undertaking it was unable to service,' Mr Jenkins said. 'Regrettably, our decision will slow the progress of the Grow Boating initiative.

'However, the board, on behalf of the shareholders representing members of the marine industry associations, is committed to seeing the marketing element of the program established as soon as possible,' he added.

Mr Jenkins said that by drawing together the collective nationwide support and expertise of industry management at the highest level, the Grow Boating program will move forward and deliver the desired outcome for the entire Australian recreational marine industry.

Roy Privett, general manager of the Boating Industry Association of NSW, a major shareholder in the scheme, said he was 'absolutely devastated' at the present outcome.

'The board and staff of the association have devoted substantial financial support and considerable time and resources to the program, 'he said.

'All of the intellectual property of Grow Boating is secure and we will continue to look at ways and means to effectively deliver a united marketing platform.

'The association’s board is scheduled to meet on September 9 and the board of the Australian Marine Industries Federation (AMIF) will meet on October 7, the primary aim being to map out a new direction.

'I believe the challenge facing us is establish a course to unite the industry behind a national initiative, overcome issues of self-interest, develop a workable, funding model and offer a transparent decision-making process that ensures the confidence of industry association members,' he added.

On August 28th unsecured creditors of Grow Boating and that includes numbers of marine industry companies were written to by Dye and Co that they should not expect to receive any of the funds owed to them.

There is to be a meeting of Creditors in Hawthorn East on September 5th 2008.

One such marine company credit and principal, owed money by Grow Boating contacted Marine Business News today.

He declined to be named but commented. ' Should that be the case and AMIF does not make those industry debts good, then marine industry goodwill is likely to evaporate fairly quickly and a future attempt to re-launch Grow Boating will be considerable hampered.'