It seems the po extended the cockpit locker and enclosed it with untreated painted plywood. You will not the fitting top left is the bilge exit point, all the bilge water directly into the transom... not good the way I see it. Hopefully all the rotten wood is centered close to the locker extension.
I ripped out all the old carpet in the cockpit locker, just more prep work for my growing list of summer 2010 projects
I was just wondering about that plywood just today. I was hoping to attach an AC breaker box to it since that will be close to where the shore power is going to come in (current plan)... but it does look suspect.
When I get around to working this little problem, I'll just fiberglass in some treated plywood, or if I have a little extra cash marine lumber. Also change the bilge exit point.
With the bilge exit point already in the transom, the simplest fix would be to purchase a few more feet of bilge hose and incorporate it into the closest screened drainage point next to the motor mount.