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Speaker 1: Company liquidations. You would have seen this. They hit a

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Speaker 1: ten year high. Two and a half thousand businesses went

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Speaker 1: under last year, seven hundred more than twenty twenty three,

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Speaker 1: and until consumer confidence burst back into the scene, it's

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Speaker 1: expected to continue. Brian Williams of BW and BWA Insolvency

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Speaker 1: is with us this morning.

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Speaker 2: Brian, Good morning, Brian, good morning.

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Speaker 1: Is this as bad as it looks calling at the

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Speaker 1: worst and ten year high?

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Speaker 2: Well, I don't think it's as bad as the GFC.

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Speaker 2: I wonder whether what might change the future though, is

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Speaker 2: your conversation with your previous interviewer and how the geo

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Speaker 2: political environment will alter and how it will impact on

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Speaker 2: New Zealanders and the New Zealand economy.

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Speaker 1: That's going to be a big determinant going forward. What

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Speaker 1: about the IID have apparently been cracking down on prosecutions

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Speaker 1: on liquidating companies who aren't paying taxes. Is that plate

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Speaker 1: had an effect?

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Speaker 2: Definitely? I think that's one of the drivers of the

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Speaker 2: volume of the liquidations today. The IIDA appears to have

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Speaker 2: a policy of either pay or die, and if if

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Speaker 2: you can't pay, you shouldn't survive, and I think that's

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Speaker 2: really appropriate. Quite Honestly, companies have for many, many years

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Speaker 2: in some instances not met their obligations to the commissioner,

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Speaker 2: and they need to either pay it, make arrangements, or

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Speaker 2: they can't continue. And I think that's what we've seen

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Speaker 2: today statistically, is the idea saying, well, we've lost patients

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Speaker 2: and we're going to make that decision for you.

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Speaker 1: It's heartbreaking in a lot of ways because for a

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Speaker 1: lot of these companies, they will be hard working, you know,

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Speaker 1: fastidious people who are doing all the right things, but

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Speaker 1: just not getting ahead. If you are on the edge

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Speaker 1: right now and you've chewed through your equity, you've chewed

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Speaker 1: through your cash, it could still be a long time,

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Speaker 1: could still be six months to a year before some

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Speaker 1: kind of spending sugar hit comes to save you.

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Speaker 2: Right well, I don't think it's going to come quickly.

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Speaker 2: And one of the problems is the expenses that haven't

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Speaker 2: preached across the last two or three years have backing

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Speaker 2: out much of the gross profit that companies are earning.

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Speaker 2: And secondly, weather's been a shortfall of liquidity. They've borrowed

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Speaker 2: money and tear lenders have fed into that. So with

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Speaker 2: punitive interest rates, that's just soaking up whatever gross profit

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Speaker 2: they are going to be earning in the future, which

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Speaker 2: is again staffed by the lack of disposable income. Now

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Speaker 2: that will change as interest rates go down, but I

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Speaker 2: suspect that many people in the economy, and the economy

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Speaker 2: is the aggregate of all of those participants. Individuals will

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Speaker 2: consolidate their affairs and to just take a breeder and

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Speaker 2: have a coupany for a while and see what the

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Speaker 2: future may bring.

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Speaker 1: Brian, Thank you, Brian Williams, b and bwa Insolvency. For

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Speaker 1: more from the Mic Asking Breakfast, listen live to news

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