ALBURY and Wodonga have avoided the big rise in business insolvency cases being experienced across Australia and Wagga.
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Data released this week by the Australian Financial Security Authority shows the tally of debtors who entered business-related personal insolvency rose 20.6 per cent nationally in the June quarter.
In Wagga there were 10 cases in June, compared to three in the March period, while Albury dropped from four to three and Wodonga stayed constant at four.
Murray-Riverina NSW Business Chamber regional manager Ben Foley was unable to identify a particular reason for the difference between Wagga and the Border.
But he noted major building projects can sometimes result in subcontractors going through a boom-bust.
“I’m assuming if there’s been a bit of a spike that could be part of the reason, but without speaking to individual businesses it’s hard to say for certain,” Mr Foley said.
Albury-based Australian Industry Group regional manager Tim Farrah suggested the shake-out caused by the global financial crisis of 2007-09 had helped inure businesses.
“When the GFC hit it was certainly a wake-up call for businesses, both small and large, from lots of aspects because many were fairly fat leading up to that time and any excess wasn’t a worry,” Mr Farrah said.
“So when that hit, people were looking at being more efficient and it reshaped the way a lot of people did business and they made really good changes.
“Now even though things aren’t flash, businesses are operating on models which make them more resilient and they’re looking at new markets, particularly overseas.”
Mr Farrah said although the Border economy had not hit a purple patch there were some good indicators.
“We’re seeing very few redundancies which is a good sign and generally people are persevering and there is still enough profit to kick things along nicely,” Mr Farrah said on Thursday.
“It’s just very steady and conditions are very soft, but at least it’s steady and it’s not getting worse and businesses are still able to make a profit.
“How long that will be sustainable I’m not really sure.
“These things come in cycles and everyone’s waiting for things to turn up again.”
Mr Foley noted the July 2 federal election had not appeared to greatly influence business attitudes towards decisions on matters such as investment.
“They said ‘regardless of the outcome I’m going to get on with running my business’,” Mr Foley said.
He said previously it had been clear that Riverina firms would “sit on their hands” during campaigns in wait for fresh government steps.