Marina builders caught out
I am not sure that Allan Richards is being entirely fair to British Waterways in his article. Quite frankly I am not surprised by the optimism displayed in 2006 by the British Waterways New Marinas Unit, writes Tony Collins.
This was of course two years before the worldwide banking crash. It was only a few years before that the dictum 'Don't buy a boat until you have a mooring' was almost universally endorsed. Since then many things have happened.
Breeding like rabbits
The available moorings have soared with new marinas apparently breeding like rabbits. The financial implications of the crisis for all of us. The lack of confidence in the future and the lack of money to invest. The ageing of the boating community. (I remember how difficult it was to get younger members to join an inland waterways boating club).
Building of a marina is not an overnight activity, so the momentum gathered by those reacting to the shortage of moorings clearly got caught out by the speed of the banking crisis. I remember the velocity of the bad news arriving during 2008. It was like a falling domino effect. An example is very close to home for me. Because of health issues we put our boat up for sale in April 2008. It was sold in two weeks. Friends put theirs up for sale two weeks after us at the same broker's yard, it had similarities to ours, age, condition, value etc. It was still not sold 12 months later. So with boat sales slowing down, it is no wonder that a surfeit of moorings came about.
No longer charge what they like
Other factors may have affected those making decisions on the business of operating a marina around that time and since. Certainly the situation where marina owners could charge what they like, have gone and perhaps some, with the benefit of hindsight would have made different decisions. Whether the advice given by British Waterways to those contemplating climbing aboard the gravy train, persuaded them to go ahead or not, there is no doubt that in 2006, the optimism shown by British Waterways was shared by others in the trade.
My old economics lecturer used to say that "In economics, the questions always remain the same, it is only the answers which are subject to change." You have to speculate to accumulate, but the risk is that you lose your money if you projections turn out to be wrong.
Twas always thus. I doubt that marina owners would be complaining now if British Waterways had turned out to be correct in its assessment of future demand.