Port Hedland Yacht Club enters administration, blames ‘lack of support’ during Spoilbank Marina construction

Port Hedland Yacht Club members have been left in the dark about the club’s future after the club committee shut the doors earlier this month. The club, which has been operating for five decades, sent an email to members in January explaining its financial difficulties. Yacht club commodore Adam Snell confirmed the club had closed, but said they “haven’t had a chance to communicate” to members exactly what the situation was. When the North West Telegraph spoke with Mr Snell on February 16, he said an administrator had not yet been appointed. “The rumour that we are in administration, as of today or as of last week, whenever, is just not correct.” However, the Australian Securities and Investments Commission published a notice on February 15 that said an administrator was appointed on February 11. In response to this, on February 17 Mr Snell said it was “a complicated process” and that when he spoke to the North West Telegraph initially he “hadn’t completed this process”, despite the public notice being published by ASIC on February 15. The yacht club has suffered from staff shortages due to border closures, as well as not being able to afford the rent in town to house the staff they do secure. Mr Snell said one of the main drivers of the club’s decline had been the construction of the Spoilbank Marina. He said the yacht club’s business was “essentially destroyed” by the marina. “Not only have we had no incentives or kickbacks, but the people who were sponsoring the club have been dis-incentivised to do so. We’ve not been able to even maintain the sponsor list we had,” he said. “Everyone thinks we’re getting millions of dollars. We’ve been given nothing from the entire marina. “One of the major miners declined to hold their Christmas party at the club because it was ‘too construction-y’ and that’s like a $20,000 loss.” The Town of Port Hedland dismissed Mr Snell’s claims that the Town’s lack of support during construction of the marina had contributed to the club’s closure. A Town spokesperson said it had taken several actions to assist the yacht club. “The Town authorised the refinancing of loans to reduce interest payments (and) suspended loan repayments with no penalty for over 12 months,” they said. “The Town also engaged consultants at no cost to the yacht club to develop a business plan to map out how operations could adapt to the marina’s ongoing construction. “In June 2020, council endorsed a new lease with the yacht club to provide a portion of land on the eastern side of the Spoilbank where they could undertake sailing activities and training.” The spokesperson said the Town had waived planning and building permit fees for the relocation of two sea containers, as well as fees associated with the disposal of “significant amounts” of junk material. While Mr Snell said that while these statements from the Town were “technically true”, the business consultant was never seen. “I most recently contacted the consultant at the end of the November ahead of our AGM because I wanted to present something to our members,” he said. “I didn’t even get a response.” The email sent to members in January called for volunteers, but according to Mr Snell it was met with demands for cheaper membership fees. “I put my heart and soul into the club, but the reality is that I really honestly don’t think anyone will care,” he said. “I think there might be maybe around 10 people who would be affected by the removal of the club but I think we’ll be pushing it to say that there’ll be double figures.” Former club commodore Jim Henneberry said the club should have been the “centrepiece of the marina”. Mr Henneberry led the club for several years prior to Mr Snell taking over in 2021 and said the Town of Port Hedland had worked “very collaboratively with the club” about the construction of the marina. “I’d hate to see this little storm we are going through sink the club, but I don’t think it will; I believe that the town will rally behind the club,” he said. “The marina down there is going to be spectacular, but it’s still two years away “We need assistance from sponsors or the State Government or the Pilbara Ports Authority to get through this.”