1The Underwater Training Centre Tasmania (TUCT) The Centre was established in 1995 in response to the need for

international accreditation for all commercial divers. The Australian Federal Government primarily funded the centre (Aud $2.2M), these funds were used to purchase a saturation diving system along with the equipment required to deliver the full range of diving qualifications. The centre is one of only three in the world that provides training up to Part IV (bell and mixed gas). Initially the school failed due to a combination of a group think afflicted board of directors and the appointment of a manager who was ineffective and had no experience with the lucrative deep gas and bell diving training (it had been well and truly established during the development of the business plan that there was little to no margins in providing training to part III level and that profits would only flow once part IV and its associated short-courses were provided). The centre was in steep decline when the owners of one of the other two part IV training centres learned of the financial difficulties that the centre was experiencing. This company: The Underwater Centre approached the Australian government and acquired the centre and all the assents for less than $100k. Since that time the centre has flourished, for example; last year the centre trained over 130 part IV students (at $30k per student) and at least an additional 80 parts I, II and III students (at $15k per student). The offshore oil and gas industry has a reputation for experiencing wide variations in activity and is tied directly to the price of oil. During 2008 two elements came in to play; oil consumption reached Peak Oil resulting in $145 per barrel then the GFC had a dramatic impact on crude oil prices with demand falling significantly behind known resource resulting in a dramatic plunge in oil prices followed a year later by a dramatic reduction in offshore CAPEX and maintenance. The combined effect of the GFC and the drop in oil prices brought about a glut of trained divers. However, it is well known in diving training circles that demand for diver training has a lag period of about 18 months. Given these circumstances; the demand for diver training has slumped dramatically but, will pick-up in about 12 months. The demand for commercial divers has now kicked-in with major contracts being let daily and divers becoming high in demand not only for the traditional oil industry but also for the very diver intensive offshore wind farm construction industry. Unfortunate the Scottish owners of TUCT have continued to syphon funds from the centre and have provided virtually no investment back into the centre. There is so much that could have been undertaken with minimal investment (compared to profits). Had the directors re-invested in the TUCT then, there is no doubt that TUCT would now be the worlds leading

diver training centre offering specialised courses such as; Oil Field technology courses, our industry is screaming for divers to be trained in the skills that are specific to the offshore oil industry such as; Metrology, Hydra-Tight operation, riser installation etc. Given the current down-turn in diver training demands and given the very poor reputation that the Underwater Centre in Scotland has earned; the Scottish centre has been running at a loss for some time and it has used the profits generated from TUCT to keep the Scottish centre operating. In contrast to the Scottish operation; the TUCT has been generating substantial profits but, as stated; these profits have been repatriated and not re-invested. Recently the Scottish owners announced that part IV training would be suspended and that all candidates approaching TUCT would be diverted to the inferior training centre in Scotland and the Tasmanian operation effectively mothballed. I have had the opportunity to act as a guest lecturer at TUCT for the Diver Medical Technical short courses over the past six months when I have been available to travel to Australia to host these courses. I have provided two courses with a revenue of $75K, the cost of providing these courses inclusive of lecturer fees, administration and training aids is less than $20k. However, I will not be able to provide any more training as the consumables required for this course have not been purchased ($2.8K) and this typifies the behaviour of the Scottish owners. I believe that the school could be purchased from the Scottish owners for less than $1.5 m providing the Tasmanian Government in conjunction with the Hydro provide approval for an identical school to be established on Lake Gordon using the Strathgordon accommodation facility (now closed down). Obviously the Scottish owners would be reluctant to sell the assents for a reasonable price regardless of training down-turn but, the fear of a government supported opposition facility would no doubt bring them to the negotiating table with a more accommodating attitude. I must state that I have no desire to be part of this process (should it proceed) and my interest in saving the school is based purely on a desire to see a first class and world recognised facility remain in Tasmania. In addition, I have a sentimental attachment to the centre as I initiated the establishment of the centre. My only interest in the centre remaining in Tasmania would perhaps be as a consultant and undertaking some casual training when I am in Australia. Should the reader require any additional background information; feel free to contact me as per the following: James Rigney

Diving Superintendent PT Advanced Offshore Services Jakarta jmrigney@gmail.com +61 448 101053