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The rule has been ignored. It's been a requirement since "forever". This has been covered a few times in a few threads on crew. There's quite a bit of international case law. Some dating back over a 100 years, where anchored boats have been found a contributing factor in an incident cause they did not have a look out. This has been applied to both commercial and recreational vessels. MaritimeNZ interpretation comes down from the treaty and prior international case law. One previous thread with more content is over here:

Mind you... All sailors are racers when they see another sail on the far horizon.... But I do think this site could do with another forum section... we have "Marine Talk", "Tech Talk", "Short Talk", "Race Talk"... I think we also need "Cruising Talk"

Really appreciate the response. Yip probably the advice I need but have been burying me head in the sand for a while but now at a cross road. Don’t have the money to rebuild or skill. I will engage an old head for a survey and good look. If anyone knows anyone in the Auckland area that would suit having a look, any recommendations are welcome. Thanks again