By 10am he said he was watching the 4m boat with the biscuit and thought "what an idiot".
"I kept on watching because I thought there might be a problem."
He said he could see the boat was drifting further out to sea as the wind got hold of it.
Then he saw a man dive off the boat, leaving one of the women with him on board - the other was already in the water.
"The girl left on the boat did not know how to drive it and then he and the other one in the water became separated from the boat."
Mr Price said it was the worst thing to do in that situation, especially considering it did not look as if the man was wearing a lifejacket.
Luckily for the trio there was another boat out there checking on crayfish pots, who the woman on the boat waved down, Mr Price said.
"This boat pulled alongside and then must have seen the other two in the water and went and grabbed them."
The three were brought in to the fishing club boat ramp, where police and an ambulance were waiting.
Mr Price said no one, particularly inexperienced people, should have been in the water in the rough conditions.
"In hindsight, someone could easily have drowned."
Sergeant James Keene of Hawke's Bay Police said the trio had been rescued by the time police arrived.
"When we met them at the wharf the woman who had been in the water, aged in her mid-20s, was distressed and was suffering mild hypothermia, but no physical injuries.
"Obviously this is a warning to check the conditions.
"Although it wasn't too bad when they went out, the wind picked up during the morning.
"When conditions change like that it's important to come straight back to shore."