Page 5354 - Week 17 - Thursday, 13 December 1990
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MINISTER FOR THE AUSTRALIAN CAPITAL TERRITORY
LEGISLATIVE ASSEMBLY QUESTION
Question No 286
Business Receiverships
MS FOLLETT - Asked the Chief Minister -
(1) How many businesses have gene into rece-i-,ershi: since .a- 1989 .-I (a) Ck; (b) Central Canberra; and (c) Belconnen.
(2) How do these figures compare with the same period in each
of the last five years.
MR KAINE - The answer to the members cuestion is as follows:
(1) & (2) Receivership is a process which relates only to incorporated companies as distinguished from sole traders and partnerships and other unincorporated businesses, which go bankrupt.
The Corporate Affairs Commission of the A.C.T. is an agency of the Commonwealth Government. It compiles statistics relating to companies incorporated in the A.C.T. that go into receivership.
The number of companies incorporated in the A.C.T. that have gone into receivership during the past five financial years is as follows:
1985/86 6
1986/87 7
1987/88 11
1988/89 28
1989/90 72
It should be noted however, that these figures are distorted by a number of factors and are not an accurate reflection of receivership amongst ACT operating companies for the following reasons.
The figures include a number of companies incorporated in the A.C.T. that do not actually operate a business in the A.C.T. The A.C.T. Corporate Affairs Commission report that it is common for interstate companies to incorporate in the A.C.T., regardless of whether they actually operate a business in the Territory or not. It should also be noted that a number of companies cnerating in the A.C.T. are incorporated interstate and are excluded from the above figures.
These figures are also distorted by the fact--that during 1989/90, a single large national enterprise, comprising approximately 40 companies went into receivership resulting in a large increase in the number of recorded receiverships.
Without an extensive and costly search of Corporate Affairs files, it is not possible to obtain statistics relating to receivership by location within the A.C.T.
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