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Speaker 1: You start it out this morning from Centrics and business

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Speaker 1: liquidations up twenty seven percent year on year. Business loan

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Speaker 1: defaults also up fourteen percent. Brian Williams, principal at BWA

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Speaker 1: insolvency with me this morning.

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Speaker 2: Brian, Good morning, Oh, good morning, Ryan. Good to speak

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Speaker 2: with you.

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Speaker 1: Great to have you on.

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Speaker 2: Now.

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Speaker 1: Are these insolvencies because of the economy or because we're

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Speaker 1: taking more enforcement action? What's behind them?

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Speaker 2: I think that's the combination of both. To be honest,

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Speaker 2: I think that the pit four headholders to take the

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Speaker 2: view that they can no longer continue with their current

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Speaker 2: circumstances is certainly a feature of what we're seeing, but

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Speaker 2: it is clearly a result or an after glow of

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Speaker 2: COVID and the lower demand that's flowed out of the

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Speaker 2: government policies. I think that's exposed. We can balance sheets

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Speaker 2: as the tigers out. Of course, that exposes all of

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Speaker 2: those rocks that are not there, not forming the strongest

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Speaker 2: position for the companies, and they can't be dealt with

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Speaker 2: by continued levels of sales that existed in the past.

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Speaker 1: What sort of businesses are able to survive? I mean,

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Speaker 1: are you seeing trends in terms of industries, presumably constructions

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Speaker 1: up there.

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Speaker 2: Well, I think the construction always features highly anyway because

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Speaker 2: they represent such a high proportion of the gross domestic

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Speaker 2: product of the country. But they're certainly high, no doubt

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Speaker 2: about that. The particular segment inside the construction industry of

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Speaker 2: those builders that started for the hammer and started to

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Speaker 2: smash nails and a timber and don't necessarily have followed

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Speaker 2: up with the experties that required to make sure that

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Speaker 2: they're very slim margins results in survival.

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Speaker 1: Sorry, yeah, absolutely. When do you see this turning around?

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Speaker 1: I mean, you're at the cold face and we're seeing

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Speaker 1: it every month. We get the reports that it's here

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Speaker 1: on year, still up. When do we start to see

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Speaker 1: it come down? Do you think?

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Speaker 2: I think later this year, And it could be asked,

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Speaker 2: why would I think that? I think that there is

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Speaker 2: a discretionary spend will increase as the year progresses, as

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Speaker 2: the sun shines more towards Christmas. People have an enlightened

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Speaker 2: daughter like the viewpoint about their future. But they've got

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Speaker 2: to have funds to spend, and that is going to

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Speaker 2: be lowered interest rates and I guess costs coming down.

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Speaker 2: So I think that later on this year there will

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Speaker 2: also be a I think a new surge of a

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Speaker 2: new economy on the way. If gear political environment will

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Speaker 2: allow it, there'll be a new economy on the way.

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Speaker 2: AI is featuring more and more in the news all

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Speaker 2: the time, and there'll be new providers, new supply siders.

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Speaker 2: So I think Christmas New Year will be the time

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Speaker 2: where we get a.

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Speaker 1: Little little boast, little kickback. Brian appreciate you at least

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Speaker 1: not go getting worse month on month. Brian appreciate you

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Speaker 1: Tom this morning. Thank you very much, principal at e Insolvency.

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Speaker 2: For more from Early Edition with Ryan Bridge, listen live

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