Squad leader David Campbell said the group had applied in September for $55,000 to help fund a new boat under the Regional Partnerships program. Eden-Monaro’s then MP Gary Nairn had assured them at the time they were likely to be successful.

Spurred by rising boat prices the group placed a $20,000 deposit on a vessel, only to receive shattering news last week.

An adviser for current Eden-Monaro MP Mike Kelly wrote to say the Regional Partnerships program had been scrapped and “all uncontracted applications, including yours, will not be proceeded with”.

He said the program had been

discredited by the National Audit Office, and would be replaced by a new program under which the squad could re-apply for funding.

He added the squad’s initial application was submitted too late to be considered and contracted before the Federal election last November. And he said the squad would have been aware that its application was unlikely to be approved, as he had told them so in March.

Mr Campbell said the deposit meant the group could no longer apply for funding and would have to instead borrow the money to buy a $160,000 category two vessel.

The group had to cover the vast area between Moruya and Narooma because of last year’s closure of Moruya Coastal Patrol, and the new boat would increase the distance they could travel offshore from just one kilometre to seven kilometres.

They had already emptied out their bank account of $40,000 - 15 years of savings - and had received a $70,000 grant from the Volunteer Rescue Association headquarters.

Mr Campbell said the need to borrow the additional funding of $55,000 from the VRA meant they could no longer afford to replace their wharf, which has been condemned by council.

The squad already raises $20,000 each year to cover it’s annual operating costs. Even if it managed to raise another $5000 each year, the loan would take 11 years to repay. Mr Campbell said the group would attempt to seek some other form of government funding.

“I don’t care whether it comes from the Federal or State Government, but somewhere along the line they both want us to save lives,” Mr Campbell said.