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BIA Logbook Dec09-Fin LOGBOOK NEWSLETTER December 2009 The official newsletter of the Boating Industry Association of NSW Ltd Maritime rents Seawind 1250 procedure untenable takes the lead Page 4 Page 12 Print Post Approved PP2411613/00057&8 ACN 000 618 468 LOGBOOK December 2009 NEWSLETTER 21 NSW Maritime rents procedure untenable 4 Comments sought in new Lifejacket Laws 6 Marine Rescue NSW up and running 8 Boat Driver Training for Schools 10 Boat for Life 11 Seawind 1250 launch 12 Technical Seminars – BIA takes to the road 14 24 26 Berrys Bay Maritime Precinct 20 Cricket – Port Jackson Cup 21 Division News 22 Try Sailing Day success 24 Industry’s tragic losses 26 Front cover: Seawind 1250 General Manager’s Catch-Up e have arrived at our last edition of Logbook for 2009. very important time in our relationship It has been a year of twists and turns in an industry that with the NSW Government. Whas been contracting and facing extremely diffi cult Premier Rees has appointed and patchy sales, manufacturing and importing activity. Paul McLeay MP to the portfolio On the positive side of the ledger, service, repair and of Ports and Waterways. We are maintenance activities have remained strong. We hope pleased the portfolio has remained consumer confi dence has rebounded suffi ciently for a with a dedicated Minister in lieu of vast improvement across the industry in our peak boating being lost in a super ministry. It is season. vital the industry keeps advocating BIA has had a busy year with our departure from AMIF and its agenda and it is essential that a search for a single national entity association to represent we strive to establish and maintain the interests of all members. This search for a workable model a good workable relationship between the new Minister and will intensify in 2010. our industry. All of our BIA Divisions have been active throughout the During 2009 BIA has been operating under a defi cit budget year with accreditation on the agenda, launch of a 50-point to assist members. This will result in a signifi cant loss for 2009 Safety Check, establishment of a new Try Crewing Day for and represents a signifi cant reversal on 2008 revenue stream. the sailors, establishment of an industry BoatsOnSale web Our activities have been maintained and indeed our focus site and many other activities. on marketing the boating lifestyle and delivery of industry The Boat Manufacturers Association has completed its fi rst specifi c training has accelerated. A 2010 Training calendar full year of meetings and factory visits and a new division has can be found on our web site. been launched to focus on Trailer Boat Retailers issues. More BIA Board of Directors have again planned a defi cit budget details on current issues including continued dissatisfaction for 2010 with no increases in membership subscriptions, of Marina Operators with NSW Maritime Rental Policy are exhibition rates for Sydney International Boat Show and contained in this edition. will maintain free public entry for the Rosehill Boat Show. As an industry association a major role of advocacy to SIBS exhibition rates have been held for 2007, 2009 and the Government and the community never ceases. We have now 2010 despite known cost increases between 5-7% pa. joined a national Boating and Fishing Council to enhance our Negotiations with third party suppliers are underway in an representation on marine parks and environmental issues to endeavour to derive further direct cost savings for members ensure maximum access for boating and fi shing activities. and the popular Member Travel Insurance Program is being maintained as a free member service for 2010. It is an understatement to say the entire industry was surprised and shocked at the recent dismissal of Joe Tripodi As always BIA staff are available to discuss with you any as Minister for Ports and Waterways. matters raised in Logbook or other issues or comments. He was a champion for recreational boating and what it As we approach the festive season our Board of Directors had to offer the community and displayed real concerns and and staff extend to all our members and readers of Logbook sought ways to improve our industry’s development. His a safe and enjoyable Christmas. For those not having a break knowledge, understanding, enthusiasm and ability to deliver we trust it will be a successful trading period for you all. have been a real boost to business confi dence. We hope you can fi nd plenty of time for family and friends I have said it before and will say it again that Joe Tripodi during this busy period and of course grab every opportunity was the fi rst Minister in over 20 years from both sides of to enjoy some boating. politics to show a keen interest and determination to improve Roy Privett recreational boating pursuits. We witnessed a new era of General Manager consultation and leadership and reform of NSW Maritime in many policy, administrative and approval processes to improve the land/water interface which is vital for our survival. His leadership in improvements of Sydney boat ramps, LIFEJACKETS commercial marina lease policy, introduction of Stakeholder Forums, You must have an approved improved safety initiatives and the amalgamation of volunteer rescue lifejacket for each person on board. organisations into NSW Marine Rescue should be acknowledged and Check that they are in good applauded. It has been an exciting and somewhat challenging but condition and everyone knows where they are stored. It is recommended that children wear a lifejacket Use the BIA Logo whenever in a boat. Make sure it is the right size and properly fi tted. Be prepared - have a drill so people know what to do if there is an accident. It is compulsory to wear a lifejacket when crossing a coastal bar. ENJOY SAFE BOATING Boating Industry Association www.bia.org.au Ph: 02 9438 2077 For employment in the marine industry log onto www.bia.org.au and click on ‘Employment ... Jobs Vacant/Jobs Wanted’ Let your customers know that you comply with the For boating weather log onto www.bom.gov.au/marine Industry's Code of Practice. Boating Industry Association BIA of NSW LOGBOOK December 2009 - 3 NSW Maritime’s commercial marina rents procedure is unsustainable ince the release of the NSW Maritime Commercial Lease Policy in 2008, the BIA has been working hard Sto negotiate with Maritime a manageable Commercial BREAKING NEWS … Marina Rents Procedure (CMRP). The Industry-preferred At an Australian Property Institute Wet Lease Valuation methodology based on ‘percentage of turnover’ results in a Seminar on 18 November Rory Gray of NSW Maritime consistent, transparent and sustainable rent determination Commercial Property was asked by a member of the BIA, procedure that responds to actual market conditions. “does NSW Maritime have an accredited independent Despite the concerted efforts of the MANSW committee expert report, similar to the Pitcher Partners Report, which and BIA staff, the CMRP released by Maritime in August 2009 shows that the rents in the Procedure are sustainable?” fails to deliver a sustainable outcome. His answer was, “NSW Maritime has an internal Having put forward, in numerous meetings and independent report.” correspondence, arguments based on the independent findings This answer is conflicted, and at odds with normal of Pitcher Partners (set out in their report ‘Sustainable Rent commercial practice. How can a landlord write an internal for Marina Concession Holders’ – September 2008), the BIA’s independent report to justify its own rental procedure? representations seem to have fallen on deaf ears. The Land & Property Management Authority (LPMA- NSW Maritime, the monopoly landlord on Sydney Harbour, formerly NSW Department of Lands) has used Preston has not formally challenged the findings of the Pitcher Partners Rowe Patterson to give them an accredited, independent, Report, which found that sustainable rents are between 6% and expert report. 8% of turnover, nor have Maritime provided data or analysis that supports the sustainability of the current CMRP. Why has NSW Maritime not done the same? In fact, NSW Maritime has provided no information All accredited experts conclude that marina rents supporting the CMRP from any external, independent, or should be between 6%-8%. NSW Maritime’s procedure is accredited source. Three critical flaws in the CMRP are: clearly outside this, and unsustainable. • The ‘double dip’ on commercial swing moorings, where both a license fee and a percentage of revenue generated representatives from thirty-six marinas on Sydney Harbour, from the mooring is payable to NSW Maritime under the lease and based on that meeting and other sustainability information agreement. referenced, the BIA proposed the following amendments to • The uncapped and unsustainable percentages applied the current CMRP: to berthing revenues for the purpose of determining rent. 1. Commercial Swing Moorings • The unsustainable percentages applied to sub-tenancy Remove license fees for commercial swing moorings, rental revenue and directly-supplied marine services, for the and cap the percentage applied to berthing revenues for purpose of determining rent. the purpose of determining rent, at 7% (irrespective of the On 26 October 2009, the BIA convened a meeting of proportion of total vessel storage revenues derived from commercial swing moorings). 2. Berths BIA
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