None of this deterred the motor sport fraternity, who had a long history of racing on the island pre-war, including the staging of many Australian Grands Prix and TTs. Bernard Denham, the owner of a small transport business on the island, fondly remembered the racing days of the 1930s, and the huge boost the local economy enjoyed whenever the cars and bikes arrived. He spoke to anyone who would listen of his dream to build a permanent motor racing complex, including a circuit of Grand Prix standard. Denham and Winston Maguire, the owner of a Cowes coffee shop – Mac’s Café, recruited four other local businessmen. They met regularly in the café to discuss the idea, and soon formed the Phillip Island Motor Racing Club.
A local landowner, Mr P. D. Whitlock, also owned a successful Holden dealership, Brighton Beach Motors in Melbourne and was a keen motor racing enthusiast. He offered to sell the club 300 acres of land for the very generous sum of £6525.00 ($13,050.00) with only £100 ($200) required for a deposit. Between them, the six club members scratched together the deposit, and the Phillip Island dream was a step closer to reality. There was no fixed period for repayment, and payments could be made at any time, for any amount. About this time, the club underwent a name change to Phillip Island Auto Racing Club (PIARC). The founding members all agreed that motorcycle racing was vital for the venture to succeed. However a strict regulation of the Auto Cycle Union of Victoria prevented motorcycle riders from belonging to more than one motorcycle club. The substitution of ‘Auto’ for ‘Motor’ solved the problem, as, by joining PIARC, riders were effectively joining a car racing organisation.
In 1952, PIARC held its firstwar, but the debris from the ruins of the town was used to form the basis of a network of roads. This became a 2.6 mile (4.2 km) racing circuit – the primary aim of which was to attract tourists to the region. Moreover, the location of the Dutch circuit was not dissimilar to the PIARC lease on Phillip Island – low scrubby country that copped a fair battering from the elements.
