Territory Stories

Budget Paper 1994-95 No.6 Northern Territory Economy



Budget Paper 1994-95 No.6 Northern Territory Economy

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Tabled Paper 2156


Tabled Papers for 6th Assembly 1990 - 1994; Tabled Papers; ParliamentNT




Tabled by Barry Coulter


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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Business Conditions historically high interest rates during the late 1980s, growth in Territory demand for commercial finance has been relatively greater than that nationally. Commercial finance demand increased by 11.0% in the Territory during 1993 following a rise o f 16.4% in 1992. National data show an increase o f 6.9% following a contraction in the previous year. Lease finance demand increased in the Territory by 53.4% during 1993 compared to 12.9% nationally. This is a highly volatile series in the Territory that has a distinct two year cycle linked to the leasing and regular turnover o f automobile fleets. Bankruptcies B ankrup tcy data is com piled by the Insolvency and Trustee Service Australia. Figure 5.3 shows movements in quarterly bankruptcies in the T erritory and for Australia over the period December 1989 to December 1993. The num ber o f bankruptcies declined during 1993 for both Australia and the Northern Territory. Figure 5.3 illustrates the re la tiv e h a rd sh ip s faced by the T errito ry and the n a tiona l econom y through the most recent recession. While the n u m b er o f b a n k ru p tc ie s in the Territory m irro red m ovem ents in the national totals, they did not increase at as great a rate through 1990/91 and have declined consistently faster through 1992 and 1993. Data for 1992 and 1993 in the Territory show decreases in bankruptcies o f 21 .2% and 2 0 .7% , resp ec tiv e ly . National data show smaller decreases o f 6.1% and 7.0%, respectively. The number o f bankruptcies recorded in the Territory during 1993 returned to the levels o f pre-1988. In the coming year, bankruptcy levels are expected to remain m odest in historical 2 9 Figure 5.3 Bankruptcies (annual change - quarterly) Source: Insolvency Trustee Service Australia