CONTROVERSIAL businessman Richard Carr has defended his decision to continue in competitive power boat racing after the collapse of his companies.

The 49-year-old former nightclub and property boss was in Portugal at the weekend taking part in the powerboat P1 World Championships.

Mr Carr is the owner of the Honeyparty.com team and throttle man on the outfit's racing boat #69.

His club firm Future 3000 Plc went into administration in July, quickly followed by Ravine Lifestyle, which had eight development sites in Poole.

Over 500 potential unsecured creditors, mainly trade suppliers, of Future 3000 are owed around £1.8 million but are not expected to see any of their money.

Asked if he thought some creditors might be surprised to see him still on the racing circuit, Mr Carr told the Daily Echo at the Marina de Portimao on the Algarve: "This is my hobby. I don't want to look as though I'm sticking two fingers up. I know people have lost money but so have I. I'm a victim of the credit crunch and I'll probably be made personally bankrupt."

He added: "I've created a lot of wealth for people over the years."

He said the Portuguese P1 Grand Prix was the last race of the season and the money on the team had already been spent.

"If we don't finish the season, we wouldn't get back the 10,000-euro bond that every team has to lodge with P1 at the outset. I did not want to lose that."

Mr Carr said he was "technically" the team owner but, as with other competitors, Honeyparty.com ran substantially on sponsorship, while a lot of the equipment was on loan.

"I may race again next season. I have had an offer from another team and I'm thinking about it."

In an interview with the Echo when his companies went into administration, he said the powerboating "would have to go".

P1 is regarded as the offshore racing equivalent of Formula One.

Mr Carr also hit out at the administrator Deloitte. As the Daily Echo reported this week, Deloitte reported to creditors that Mr Carr had transferred £1.4m from Future 3000 to his property business days before it went into administration, and removed the £243,500 cash funds from his bars and clubs in an attempt to pay other debts.

"They have tried to make me look fraudulent when I have done nothing wrong or illegal.

"My lawyers are looking into their report because they're concerned that the way it's worded, I'll be struck off as a director."

He also criticised what he described as Deloitte's "cheek" for "charging £450,000 for one month's work".

Mr Carr's woes continued on the water in Portugal. After winning the Spanish Grand Prix a fortnight ago, he retired from Saturday's race on the first lap with technical problems.

The reigning world champions, Poole-based Fountain 99 1st 4Boats.com, retained the P1 powerboat title after securing third place in the race on Saturday.