Huge rise in NI business closures

The number of businesses wound up in Northern Ireland has risen by over a third, the Department of Trade and Industry has revealed.

DETI figures also showed that 1,011 bankruptcy orders had been made in the 12 months to September, a rise of almost 8%.

Employment statistics issued on Tuesday show the numbers claiming unemployment benefit in October rose by 1,100.

The number claiming unemployment benefit is 30,300 - a four-year high.

A DETI statement said the construction industry accounted for 65% of the rise.

The unemployment figures also reflected some of the redundancies at Seagate in Limavady, which finally closed its doors in September.

'Frightening'

It is estimated that half of the 1,011 bankruptcy orders will have been made by private individuals.

"Overall, the number of people claiming unemployment benefits is still relatively low in historical terms"
Arlene Foster
Enterprise minister

In the period between October 2006 to September 2007, 106 compulsory winding up orders were made, the following year saw the figure rise to 142.

Winding up is a method of dissolving a business by selling its assets to satisfy creditors. It is not the same as bankruptcy or business failure.

Lucy Cochrane from the Citizens Advice Bureau said the amounts of money owed were frightening.

"Our caseload has gone up from 2.5 million of live debt cases to 5.5 million," she said.

"If you look at the same period last year, the dynamics of the debt - mainly it was personal credit, now it's mortgage arrears, it's fuel, rates arrears and secured loans so it's quite frightening what has been happening out there."

Enterprise Minister Arlene Foster said she did not want to exaggerate the downturn, but warned: "Economic conditions may get worse before they get better."

She said the unemployment figures were a reflection of the continued fall-out from the slowdown in the construction industry, but insisted it was important to keep the rise in perspective.

"Overall, the number of people claiming unemployment benefits is still relatively low in historical terms and we are not alone in feeling the effects of the downturn in the global economy," she said.

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