Budget Paper 1994-95 No.6 Northern Territory Economy
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.
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