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Bankruptcy Act - Report - Year - 1972-73 (6th)


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THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

1973— Parliamentary Paper No. 198

BANKRUPTCY ACT

REPORT FOR YEAR

1972-73

Presented pursuant to Statute 20 September 1973

Ordered to be printed 27 September 1973

THE GO VERNM ENT PRIN TER OF AUSTRALIA

CANBERRA: 1974

A dvocate Press Pty L td, M elbourne

In pursuance of section 314 of the Bankruptcy A ct 1966-1970 I have caused to be prepared an Annual Report on the operation of the Bankruptcy Act 1966-1970 for the year ended 30 June 1973 and have the honour to present it to Parliament.

LIONEL MURPHY

Attorney-General of Australia

CONTENTS

Page

1. Introduction . . . . . . . . . . . 1

Judicial arrangements . . . . . . . . . 1

New features of Report . . . . . . . . . 1

Matters of special significance . . . . . . . 1

Statistical schedules . . . . . . . . . 1

2. Bankruptcy business . . . . . . . . . . 2

New bankruptcies . . . . . . . . . . 2

Arrangements with creditors (Part X) . . . . . . 2

Discharges by operation of law . . . . . . . 2

Appeals to High Court . . . . . . . . . 2

Prosecutions for offences . . . . . . . . 3

Registered trustees . . . . . . . . . 3

3. Administration of estates of bankrupts and deceased debtors . . 3

Estates under administration . . . . . . . . 3

Official Receivers’ Estates Account . . . . . . . 3

4. Occupational status and industry classification of bankrupts and debtors 4

5. Causes of bankruptcy . . . . . . . . . 4

6. Financial m a t t e r s ............................................................................... 5

Revenue and expenditure . . . . . . . . 5

Official fees . . . . . . . . . . . 5

7. Staffing and general administration . . . . . . . 5

Staff s t a t i s t i c s ............................................................................... 5

Staff training . . . . . . . . . . . 6

Administrative Procedure Manual . . . . . . . 6

8. Schedules . . . . . . . . . . . . 7

v

SCHEDULES

Page

First Schedule—Bankruptcy notices issued and petitions presented . . 7

Second Schedule-—Bankruptcies and orders for administration of deceased debtors’ e s ta t e s ......................................................................................... 8

Third Schedule—Acts of bankruptcy in respect of which sequestration orders were made . . . . . . . . . . 9

Fourth Schedule—Deeds of assignment, deeds of arrangement, and com­ positions under Part X of the A c t ..................................................... 9

Fifth Schedule—Applications to approve compositions under section 74 of the Act . . . . . . . . . . . . 10

Sixth Schedule—Objections entered to the discharge of the bankrupt pur­ suant to section 149 of the Act . . . . . . . . 10

Seventh Schedule—Applications for orders of discharge . . . . 11

Eighth Schedule—Applications for orders annulling bankruptcies . . 12

Ninth Schedule— A. Occupational status of bankrupts, deceased debtors and debtors under Part X of the Act . . . . . . . . 13

B. Industry classification of bankrupts, deceased debtors and debtors under Part X of the Act . . . . . . . . 17

Tenth Schedule— A. Causes of business bankruptcies . . . . . . . 18

B. Causes of non-business bankruptcies . . . . . . 18

Eleventh Schedule—Graph showing amount of bankruptcy business for each year from and including the year ended 31 July 1929 . . . . 19

Twelfth Schedule— A. Estates under administration by Official Receivers . . . . 20

B. Amounts received and disbursed by Official Receivers . . . 20

C. Graph showing balances to credit of Official Receivers’ Estates Account for each year from and including the year ended 31 July 1936 ................................................................................................. 21

Thirteenth Schedule—Prosecutions of bankrupts for offences under the Bankruptcy Act 1966-1970 . . . . . . . . 22

Fourteenth Schedule— A. Statement of receipts and expenditure . . . . . . 24

B. Graph showing receipts as a percentage of expenditure for each year from and including the year ended 31 July 1929 . . . 25

Fifteenth Schedule—Staffing establishment of Bankruptcy Branch as at 30 June 1973 26

vi

SIXTH ANNUAL REPORT ON THE OPERATION OF THE BANKRUPTCY ACT 1966-1970 FOR THE YEAR ENDED 30 JUNE 1973 Senator the Honourable L. K. Murphy, Q.C., Attorney-General of Australia.

I have the honour to submit to you for presentation to the Parliament the Sixth Annual Report on the operation of the Bankruptcy Act 1966-1970, being the Report for the year ended 30 June, 1973.

1 IN TR O D U C TIO N

JUDICIAL ARRANGEMENTS The existing arrangements for the exercise of jurisdiction in bankruptcy in New South Wales, Victoria and the Australian Capital Territory by the Federal Court of Bankruptcy, in the Northern Territory by the Supreme Court of the Northern Territory, and in other parts of Australia by State Courts continued throughout

the year. In this regard it is appropriate to refer to the death at the age of 89 of Sir Kingsley Paine on 3 November 1972. As the Judge of the Court of Insolvency of the State of South Australia Sir Kingsley had, subject to minor

breaks, exercised federal jurisdiction in bankruptcy from the commencement of the first Bankruptcy Act on 1 August 1928 until shortly before his death. During that period of 44 years Sir Kingsley made a very significant and valuable contri­ bution to the interpretation and understanding of bankruptcy law. His Honour

Judge J. M. White, a Judge and Recorder of the Local and District Criminal Courts of South Australia, has continued to exercise the jurisdiction in bankruptcy as an Acting Judge of the Court of Insolvency in that State.

NEW FEATURES OF REPORT This Report contains some statistical information which was not included in any previous Report particularly in regard to the causes of bankruptcy and in relation to the occupational status and industry classification of bankrupts and

debtors. The latter information has been presented in a way which accords with the information relating to the work force in Australia compiled by the Common­ wealth Statistician.

MATTERS OF SPECIAL SIGNIFICANCE Matters of particular significance in regard to the bankruptcy jurisdiction and the administration of the Bankruptcy Branch during the year are referred to in the following paragraphs of this Report.

STATISTICAL SCHEDULES Statistical information in regard to all aspects of bankruptcy administration during the year ended 30 June 1973 is shown in the various schedules to this Report.

2 BANKRUPTCY BUSINESS

BANKRUPTCIES The number of bankruptcies and orders for administration of the estates of deceased debtors during the year, details of which appear in the Second Schedule,

1

was 2,254 as against 2,684 cases during the year ended 30 June 1972. This fall-οίϊ of 15% in the number of new cases became evident in July 1972 and it has been even more marked in the first six months of the present year. The greatest fall-off occurred in the Bankruptcy District of Victoria (25% ) followed

by the Districts of Southern Queensland (19.3% ), South Australia (15% ), New South Wales (12.7% ) and Western Australia (12% ). The number of new cases in all other Bankruptcy Districts has remained at approximately the same level as in the previous year. Bankruptcies on debtors’ petitions accounted for 77.7% of all new cases compared with 75% in the previous year.

ARRANGEMENTS WITH CREDITORS Details of arrangements with creditors pursuant to Part X of the Act reported during the year are shown in the Fourth Schedule. The total number of deeds of assignment, deeds of arrangement and compositions was 319 as against 352 in the previous year, a drop of approximately 9.4%.

DISCHARGES BY OPERATION OF LAW By virtue of the provisions of section 149 of the Bankruptcy Act 1966-1970, which came into force on 4 March 1968, all those persons who were undischarged bankrupts at that date, whether they became bankrupt under the provisions of the repealed Bankruptcy A ct 1924-1965 or under the provisions of a law of a State or Territory, had, subject to certain exceptions, been discharged by 4 March

1973. Section 149 did not operate to discharge a person from a later bankruptcy if, having been bankrupt on more than one occasion, he was at the relevant date still undischarged from an earlier bankruptcy. Nor did that section operate to discharge any person in respect of whose discharge an objection had been entered by the Registrar, the trustee, or a creditor, and which objection had not subse­ quently been withdrawn. The number of those persons who did not obtain a discharge by the operation of section 149, is estimated to be less than 3,000. The Sixth Schedule sets out details of objections to discharge which have been entered since 4 March 1968. The total number of objections outstanding at 30 June

1973 was 4,602 but many of these objections relate to persons who became bankrupt on or after 4 March 1968.

APPEALS TO HIGH COURT On 30 June 1972 three appeals to the High Court from courts exercising federal jurisdiction in bankruptcy were pending; three further appeals were instituted during the year covered by this Report. Four appeals were heard during the year, two being allowed and two dismissed (one subject to a variation of the order

appealed from). Two appeals were still pending at 30 June 1973. The High Court allowed an appeal from the Supreme Court of Queensland exercising federal jurisdiction in bankruptcy. Relying upon the provisions of section 60 of the Bankruptcy Act, the Supreme Court had ordered the release from custody of a bankrupt who had been imprisoned by reason of his failure to comply with an order to pay charges imposed by the Road Maintenance Act of New South Wales, being an order made upon his conviction before a magistrate for offences against that Act in that he had previously failed to pay those same charges. The High Court held that because the imprisonment was not in conse­ quence of civil legal process, section 60 did not give the Supreme Court any jurisdiction to release the bankrupt (Commissioner for Road Transport v. Train 46 A.L.J.R. 691). This decision overruled a previous decision of the Federal

2

Court of Bankruptcy (re Hollis (1968) 15 F.L.R. 386) which had been followed in several subsequent cases. The reasons for judgment in Train’s case suggest that an amendment of section 60 of the Act may be required.

PROSECUTIONS FOR OFFENCES (a) For offences against the Bankruptcy Act 1924-1965. One of the two prosecutions pending at 30 June 1972 for offences against the Bankruptcy Act 1924-1965 was withdrawn during the year and the other remains outstanding as the bankrupt has disappeared.

(b) For offences against the Bankruptcy Act 1966-1970. Twelve prosecu­ tions for offences against the Bankruptcy Act 1966-1970 were pending at 30 June 1972 and a further forty-two prosecutions were instituted during the year covered by this Report. As at 30 June 1973 thirty-two prosecutions had been disposed

of and the remaining twenty-two cases were still pending. In respect of eleven of the charges dealt with during the year, the bankrupt was either acquitted or the charge was dismissed; a further two charges were withdrawn. Details of those charges in respect of which convictions were recorded are set out in the Thirteenth Schedule.

During the year an appeal by a bankrupt against his summary conviction before a Magistrate on nine charges under section 265(f) and which was reported in the Fifth Annual Report was allowed by the County Court of Victoria. A further appeal by a bankrupt against a sentence of imprisonment imposed by a Magistrate following a summary conviction on a charge under section 269(a) was varied

and the bankrupt placed on a good behaviour bond.

REGISTERED TRUSTEES The number of persons registered as qualified to act as trustees under the Act increased by eleven during the year covered by this Report. Of the 338 trustees on the Register as at 30 June 1973, 116 were actively engaged in the administra­ tion of the estates of bankrupts or debtors.

3 A D M IN ISTR A TIO N O F ESTATES O F BA NK RU PTS AND D EC EA SED DEBTORS

ESTATES UNDER ADMINISTRATION Part A of the Twelfth Schedule gives details of the number of estates which were under administration by Official Receivers in each Bankruptcy District as at 30 June 1972 and as at 30 June 1973. These figures relate only to those estates in respect of which some moneys were held by the Official Receiver at the relevant date. The reduction of 744 in the number of these estates effected

during the period covered by this Report reflects a considerable improvement in the extent of the arrears of work which had built up over a number of years and to which specific reference was made in the Fifth Annual Report.

OFFICIAL RECEIVERS’ ESTATES ACCOUNT The funds held in the Official Receivers’ Estates Account at 30 June 1973 on account of 11,859 estates under administration at that date amounted to $7,375,682 as against an amount of $6,997,109 held at 30 June 1972. Details in relation to each Bankruptcy District are shown in Part B of the Twelfth Schedule. The amount held at 30 June 1973 may appear at first sight to be unduly high, and there is no doubt that the distribution of some of this money is

3

overdue but there are several compensating factors which should be taken into account. This amount represents less than 18 months intake on the basis of the value of the assets realised during the year covered by the Report. Also the amount distributed during the year was approximately 25% more than during the previous year ($4,693,232 as against $3,730,126); but this increase was offset by an increase of approximately 25% in the amount brought to the credit of the account during the year ($5,071,805 as against $4,054,923). The prin­ cipal reason for the sharp increase in the amount received into the account in

most Districts was the improved staffing situation which permitted more work to be undertaken in realising assets and in finalising older estates. This same improvement also accounts for the sharp increase in the amount disbursed principally by way of dividends to creditors. It is anticipated that during the forthcoming year there will be a further improvement in the rate of distribution of funds to creditors.

4 O C C U PA T IO N A L STATUS A N D INDU STRY CLA SSIFICA TIO N O F BANK RU PTS, D ECEA SED D EBTO RS A N D DEBTORS

OCCUPATIONAL STATISTICS An attempt has been made in this Report to provide statistical information as to the occupational status and industry classification of each bankrupt, deceased debtor and debtor whose affairs are being administered under Part X of the Act in accordance with the principles adopted by the Commonwealth Statistician in compiling information as to the composition of the work force following the periodical population Census. Information presented in this way may eventually enable some comparison to be made of the relative rate of bankruptcy in each

section of the work force. This information is set out in Parts A and B of the Ninth Schedule.

5 CAUSES O F BA NK RU PTCY

One of the functions of the Official Receiver is to investigate and report to the Registrar the cause of each bankruptcy, but no attempt has previously been made to analyse and collate this information for public information or purposes of research. The information in Parts A and B of the Ninth Schedule, referred to

above, shows for the first time which bankruptcies and arrangements with creditors under Part X of the Act are attributable to the bankrupt or debtor having been employed on his own account in some trade, business or profession (business bankruptcies) and which bankruptcies or arrangements are of a non­ business nature, that is to say, of wage or salary earners or persons having no remunerative employment. In respect of each of these two basic groups, Parts A

and B of the Tenth Schedule list the factors which in the opinion of the Official Receiver have led to the bankruptcy. The Tenth Schedule does not include information in regard to proceedings under Part X, which is not readily obtain­ able. In the case of non-business bankruptcies the major causes only have been identified. Further consideration is to be given to the possibility of some refine­ ment and more precise definition of the listed causes of bankruptcy.

The total number of bankruptcies resulting from the fact that persons have been engaged in business on their own account slightly exceeds the number of bankruptcies of wage and salary earners and other persons not engaged in any remunerative employment. However, in South Australia and Tasmania, particu­

4

larly the former State, the number of non-business bankruptcies is relatively higher. In the case of business bankruptcies, the predominant cause appears to be a lack of business ability, acumen, training and experience on the part of many persons who engage in business on their own account. This cause is followed closely by economic conditions affecting particular industries and the lack of

sufficient working capital. The failure to keep proper books of account appears to be a significant contributing cause in many bankruptcies. In the case of non­ business bankruptcies the principal cause appears to be the excessive use of credit facilities followed by unemployment and illhealth. Domestic discord is also a significant cause.

6 FIN A N C IA L M A TTERS

REVENUE AND EXPENDITURE A statement of receipts and expenditure on account of the Bankruptcy Branch for the year ended 30 June 1973 is shown in Part A of the Fourteenth Schedule. For purposes of comparison this statement also shows details of receipts and

expenditure for the previous year. Revenue increased by 25.5% from $858,060 to $1,076,738, due almost entirely to the 25% increase in the amount distributed to creditors from the Official Receivers’ Estates Account which permitted the

collection of official fees. Expenditure on account of the Branch increased by 23.5% from $1,597,681 to $1,974,799. Salaries increased by 23.4% , general administration expenses by 19.9% and rentals by 34.7% . The substantial increase in rentals was due mainly to the greater use of private rented accommo­

dation for several Official Receivers’ Offices. The graph in Part B of the Four­ teenth Schedule shows the annual revenue for the Bankruptcy Branch for each year from and including the year 1928-1929 expressed as a percentage of the annual expenditure incurred on account of the Branch.

OFFICIAL FEES Reference was made in the Fifth Annual Report to some revision of the scale of fees payable under the Bankruptcy Rules and the Department has now indicated that a review of these fees is to be undertaken. It is essential that the

fee structure be simplified so that valuable time is not expended in the calculation of relatively minor fees, and also that the fees which become a charge against moneys available for payment to creditors represent an adequate but equitable charge for the service rendered. One of the present difficulties in regard to fees

is that a great number of estates are administered in which there are either no realisations or the amount brought to credit is insufficient to recover even the minimum fee payable. It is estimated that during the year covered by this Report an amount of approximately $91,000 was irrecoverable for this reason. These

fees relate mainly to the estates of debtors who have themselves sought the protection of the Bankruptcy Act and who are entitled to do so without lodging any deposit towards the costs of administering their estates.

7 STA FFIN G AND G EN ER A L A D M IN ISTR A TIO N

STAFF STATISTICS The staffing establishment of the Bankruptcy Branch as at 30 June 1973 is shown in the Fifteenth Schedule. The total number of positions, namely 295, represents an increase of 19 positions during the year. Almost all these positions

5

were in Official Receivers’ Sections and included 10 new positions in Western Australia to take account of the considerable increase in the level of bankruptcy in that State in recent years.

STAFF TRAINING Advantage has been taken of any opportunity to nominate senior officers to attend management type training courses. A special training course for Realisa­ tion Officers, most of whom had very limited experience in the Bankruptcy

Branch, was conducted in Melbourne during the period 2-13 October 1972.

ADMINISTRATIVE PROCEDURE MANUAL Most of the Official Receivers and some Assistant Official Receivers attended a seminar in Sydney in June 1973 to consider management problems and also to settle the proposed Administrative Procedure Manual. The compilation of this manual is now proceeding.

J. T. JOHNSTONE

Inspector-General in Bankruptcy

BAN KRUPTCY NOTICES ISSUED A N D PETITIONS PRESENTED D U R IN G T H E YEAR E N D ED 30 JU N E 1973

FIRST SCHEDULE

Petitions presented

Bankruptcy District Bankruptcy notices issued By debtors

By persons administering

By creditors

Total

of deceased persons Presented W ithdraw n Dismissed Lapsed

presented

New South Wales and Australian Capital Territory . . 2,684 287 3 562 19 184 171 852

Victoria . . . 846 355 1 166 23 17 26 522

Southern Queensland 602 97 — 167 — 12 41 264

Central Queensland 23 2 — 5 — — — 7

Northern Queensland 77 21 — 23 — 1 2 44

South Australia . 344 489 3 76 1 3 15 568

Northern Territory 37 7 — 8 1 — — 15

Western A ustralia . 135 347 — 36 4 2 5 383

Tasmania . . 61 141 1 15 2 1 1 157

T otal . . 4,809 1,746 8 1,058 50 220 261 2,812

7

THIRD SCHEDULE

ACTS OF BAN KRUPTCY IN RESPECT O F W HICH SEQUESTRATION ORDERS WERE MADE D U R IN G TH E YEAR ENDED 30 JU N E 1973

Acts of Bankruptcy Proved

Bankruptcy District Number of sequestration orders

(a)

Assignment for benefit of creditors

(b)

Voidable conveyance.

(c)

Absconding

(d)

Seizure or sale ofgoods under execution

(g)

Bankruptcy notice

Other acts of bankruptcy

New South Wales and Australian Capital Territory . . 228 1 226 1

Victoria . , . 93 — — — — 89 4

Southern Queensland 93 — — — — 90 3

Central Queensland 3 — — — — 3 —

Northern Queensland 10 — — — — 10 —

South Australia . 34 — ■ — · — 3 30 1

N orthern Territory 3 — — — — 3 —

Western Australia . 17 — — — — 17 —

Tasmania . . 9 — — 1 — 8 —

T otal . . 490 — — 2 3 476 9

FOURTH SCHEDULE

DEEDS OF ASSIGNM ENT, DEEDS OF ARRA N G EM EN T AND COM POSITIONS U N D ER PART X D U R IN G THE Y EAR EN D ED 30 JU N E 1973 AND ASSETS AND LIABILITIES AS ESTIMATED BY DEBTORS

Bankruptcy District

Deeds o f assignment Deeds of arrangement Compositions

No. Assets Liabilities No. Assets Liabilities No. Assets Liabilities

New South Wales and Australian Capital Territory . . 26 752,656 1,130,138 12 249,663 473,772 15 925,484 599,414

Victoria . . . 58 861,429 1,253,374 22 217,342 489,055 27 158,825 488,857

Southern Queensland 8 67,712 95,577 — — — — — —

Central Queensland — — — — — — — — —

N orthern Queensland — — — 5 189,240 96,390 — — —

South Australia . 18 164,199 316,558 4 34,180 120,264 4 14,602 61,200

Northern Territory — — — — — — — — —

Western Australia . 47 924,665 1,810,755 36 901,407 1,129,292 25 191,345 441,326

Tasmania . . 3 33,391 23,745 9 540,694 392,409 — — —

T otal . . 160 2,804,052 4,630,147 88 2,132,526 2,701,182 71 1,290,256 1,590,797

9

FIFTH SCHEDULE

APPLICATIONS TO APPROVE COM POSITIONS OR A RRA N G EM EN TS U N DER SECTION 74 AN D TH E RESULT TH EREO F D U R IN G THE YEAR EN D ED 30 JU N E 1973

Bankruptcy District

Applications Results

Pending at 30 June 1972

Made during the

Pending at 30 June 1973

Number dealt with during the year

Approved

seques­ tration

annulled

Approvec but seques­ tration order not

annulled

Amount in the dollar of composition Refused

50c and

S o "

New South Wales and Australian Capital Territory . . . — 6 — 6 6 — 3 3 —

Victoria . . . — 5 — 5 5 — 4 1 —

Southern Queensland . — 1 — 1 1 — — 1 —

Central Queensland . — — — — — — — — —

Northern Queensland — — — — — — — — —

South Australia . . — 1 — 1 — 1 1 — —

N orthern Territory . — — — — — — — — —

Western Australia . 8 8 8 7 1

Tasmania . . . — — — — — — — — —

T otal . . — 21 — 21 20 1 15 6 —

SIXTH SCHEDULE

OBJECTIONS E N TERED TO DISCHARGES PURSUANT TO SECTION 149 OF THE ACT D U R IN G THE YEAR ENDED 30 JU N E 1973

Objections entered during the year Objections

withdrawn during the

Objections outstanding

30 June 1973

Bankruptcy District

By

registrars

By

trustees

By

creditors

Total number entered

New South Wales and

Australian Capital

Territory . . . 111 2 113 6 1,308

Victoria . . . . — 1 2 9 2 1 3 1 7 3 5 3 9

Southern Queensland . — 28 1 29 4 97

Central Queensland . — 6 — 6 — 6

Northern Queensland . — 75 — 75 11 154

South Australia . . — 192 2 194 268 2.211

Northern Territory . . — 5 — 5 1 20

Western Australia . . — 49 1 50 6 194

Tasmania . . . . — 17 1 18 5 73

Total . . . — 612 9 621 374 4,602

10

EIGHTH SCHEDULE

APPLICATIONS FO R ORDERS A N N U LLIN G BANKRUPTCIES U N D ER SECTION 154 AN D THE RESULTS TH EREO F D U R IN G TH E YEAR EN D ED 30 JU N E 1973

Bankruptcy D istrict

Applications Result

Pending at 30 June 1972

M ade during the year

Pending at 30 June 1973

Num ber dealt with during the year

G ranted Refused

New South Wales and

Australian Capital

Territory . . . 1 8 — 9 9 —

Victoria . . . . 2 3 1 4 3 1

Southern Queensland . 1 1 — 2 2 —

Central Queensland . — — — — — —

Northern Queensland . 1 2 1 2 2 —

South Australia . . — — — — — —

Northern Territory . . — — — — — —

Western Australia . . — — — — — —

Tasmania . . . . — — — — — —

Total . . . 5 14 2 17 16 1

12

STATUS OF BANKRUPTS, DECEASED DEBTORS AN D OF DEBTORS WHO ENTERED INTO DEEDS OF ASSIGNM ENT, DEEDS OF ARRA NGEM ENT OR COMPOSITIONS U N D ER PART X OF TH E ACT D U R IN G TH E YEAR ENDED 30 JU N E 1973

Note: Column a—Employers and persons who had previously been self-employed in a trade, business or profession which was connected with the bankruptcy or arrangement with creditors (business bankruptcies). Column b—Wage and salary earners and all other persons including pensioners having no remunerative employment (non-business bankruptcies).

M ajor and Minor Occupation G roups

3: SALES W ORKERS Insurance, Real Estate Salesmen, Auctioneers and Valuers Commercial Travellers and Manufacturers Agents . Proprietors and Shopkeepers, Workers on Own Account

n.e.c Status 0, Retail and Wholesale Trade, Salesmen! Shop Assistants and Related Workers . ,

4: r t ™ R eS\ x ^ H E R M E N ’ H U N T ERS, T IM B E R

G E T T E R S A N D R E L A T E D W O R K E R S Farmers and Farm Managers . . .

Farm Workers, including Farm Foremen W o o lC la s s e rs .................................

Hunters and Trappers . . . .

Fishermen and Related Workers . . Timber Getters and Other Forestry Workers

5: MINERS, QU ARRYM EN AND RELATED W ORKERS Miners, Mineral Prospectors and Quarrymen Well Drillers, Oil, Water and Related Workers Mineral Treaters . .

W OR KERS IN TRANSPORT AND COM M UNICATION Deck and Engineer Officers, Ship, not Services Deck and Engine Room Hands, Ship and Boatmen, no't Services .................................

A SerWcesP' IOtS’ NaV'gators and Flight Engineers,' not

Drivers and Firemen, Rail Transport ! ! ! ' '

Drivers, Road Transport . . .

Guards and Conductors, Railway

InSTraC nsporS tUPerViS° rS’ Controliers and D espatches,

New South Wales j and Australian C apital Territory ,

i

Victoria

!

9

Southern Queensland £

a b a b a b

9 1 2

6 2 1 — 1

120 9 161 7 54 4

36 22 2 16

2 8 1 1 4

1

1

2 4 — 4 3

1 —

3 1 1

1

=

2 —

— 1 — — — —

— — — - — -

| R |

17 3

45

1 5 41 10

— 2 — _

U

Telephone, Telegraph and Related Telecommunication O p e r a t o r s ...........................................................................

Postmasters, Postmen and M e ssen g e rs.................................

W o rk e rs in T r a n s p o rt a n d C o m m u n ic a tio n , n.e.c. . .

7/8: TRADESM EN, PRO DUCTION -PROCESS W ORKERS AND LABOURERS, N.E.C. Spinners, Weavers, Knitters, Dyers and Related Workers Tailors, Cutters, Furriers and Related W orkers . . ·

Leather Cutters, Lasters, Sewers (except Gloves and Garments) and Related W o r k e r s .................................

Furnacemen, Rollers, Drawers, Moulders and Related Metal Making and Treating Workers . . . .

Precision Instrument Makers, Watchmakers, Jewellers and Related Workers ..........................................................

Toolmakers, Metal Machinists, Mechanics, Plumbers and Related Metal Workers . . . · ■ · ·

Electricians and Related Electrical and Electronic Workers Metal Workers, Metal and Electrical Production-Process Workers, n.e.c................................................. · · ·

Carpenters, Woodworking Machinists, Cabinetmakers and Related W o r k e r s ..................................................................

Painters and D e c o ra to rs ..........................................................

Bricklayers, Plasterers and Construction Workers, n.e.c. Compositors, Printing Machinists, Engravers, Bookbinders and Related W o r k e r s ..........................................................

Potters, Kilnmen, Glass and Clay Formers and Related W o rk ers..................................................................................

Millers, Bakers, Butchers, Brewers and Related Food and Drink W o r k e r s ..................................................................

Chemical, Sugar and Paper Production-Process Workers Tobacco Preparers and Tobacco Product Makers . . Paper Products, Rubber, Plastic and Production-Process Workers, n.e.c.........................................................................

Packers, Wrappers, L a b e lle rs................................. · ■

Stationary Engine, Excavating and Lifting Equipment O p e r a t o r s ..........................................................................

Storemen and Freight F l a n d l e r s .........................................

Labourers, n.e.c...........................................................................

55 33 142

8

2

12

42 14

22 1 1 35

1

2

14 I

II 6

10 28 163

Note: Column a—Employers and persons who had previously been self-employed in a trade, business or profession which was connected with the bankruptcy or arrangement with creditors (busir.es

Column b—W age^n'd'salary earners and all other persons including pensioners having no remunerative employment (non-business bankruptcies).

Note: Column a—Employers and persons who had previously been self-employed in a trade, business or profession which was connected with the bankruptcy or arrangement with creditors (business bankruptcies).

NINTH SCHEDULE PART B

INDUSTRY CLASSIFICATION OF BANKRUPTS, DECEASED DEBTORS AN D DEBTORS WHO ENTERED INTO DEEDS OF ASSIGNM ENT, DEEDS O F A RRA NGEM ENT OR COM POSITIONS U N DER PART X O F TH E ACT D U RIN G TH E YEAR EN D ED 30 JU N E 1973

Industry classification

New South Wales and Australian Capital Territory

Victoria

Southern Queensland

Central Queensland

Northern Queensland

a b a b a b a b a b

Primary p r o d u c t i o n .......................................................................... 34 9 31 15 22 3 _ _ 8 1

Mining and q u a r r y i n g .......................................................................... 4 1 2 — 2 — — — 2 1

M a n u f a c t u r i n g ...................................................................................

Electricity, gas, water and sanitary services (production, supply and 19 28 17 27 7 3 1

m a i n t e n a n c e ) ................................................................................... 6 3 10 1 1 1 — — —

Building and c o n s t r u c t i o n .................................................................. 84 20 81 10 49 2 4 — 5 1

Transport and s t o r a g e .......................................................................... 66 32 71 9 50 15 — — — 3

C o m m u n ic a tio n ................................................................................... — — 4 1

Finance and p r o p e r t y .......................................................................... 7 4 2 — 2 1 — — 1

C o m m e r c e ........................................................................................... 92 24 114 21 35 3 1 — 8 1

Public authority (n.e.i.) and defence s e r v i c e s ................................. — 8 1 18 — 3 — — — —

Community and business services (including professional) . . Amusement, hotels and other accommodation, cafes, personal 69 17 48 7 9 2

services, e t c . .................................................................................. 27 6 32 2 15 6 — — 1 1

Other i n d u s t r i e s .................................................................................. 12 7 3 4 — — — — — —

1 ndustry inadequately described or not s t a t e d ................................. 2 4 3 — — — — — — —

Persons not engaged in any remunerative employment . . . — 32 — 25 — 9 — — — —

TOTAL 422 195 419 140 192 46 5 28 8

South Australia

Northern Territory

Western Australia

Tasmania

Total

a b a b a b a b a b

20 31 1 25 9 9 6 150 74

— 1 — — 4 2 1 2 15 7

11 66 1 — 9 11 3 22 68 157

5 6 3 9 2 2 34 15

31 32 — — 66 22 19 4 339 91

31 49 1 — 67 22 10 8 296 138

1 1 — 1 5 3

1 3 — — 9 2 — — 22 10

60 21 3 1 63 14 35 9 411 94

— 31 — — — 6 — 12 1 78

5 34 — — 35 5 2 — 170 63

13 12 36 3 5 3 129 33

4 2 — — 12 12 1 — 32 25

— 1 — — 8 5 — — 13 10

— 84 — — — 12 — 15 — 177

181 373 9 1 344 128 85 84 1685 975

Note: Column a—Employers and persons who had previously been self-employed in a trade, business or profession which was connected with the bankruptcy or arrangement with creditors (business bankruptcies). Column b—Wage and salary earners and all other persons including pensioners having no remunerative employment (non-business bankruptcies).

TENTH SCHEDULE PART A

CAUSES O F BUSINESS BANKRUPTCIES, BEING BANKRUPTCIES OF EMPLOYERS AN D PERSONS EN G A G ED IN A TRADE, BUSINESS OR PROFESSION ON TH EIR OWN ACCOUNT

M ajor Contributing

cause causes

1. Lack o f sufficient initial working capital 2. Lack of business ability, acumen, training or experience resulting in such matters as under-quoting, mistakes in estimating, lack of supervision and failure to

256 269

assess potential of business or to detect misrepresentations 420 268

3. Failure to keep proper books o f account and costing records 4. Economic conditions affecting industry including competition and price cutting, credit restrictions, fall in prices, increases in charges and other overhead ex­ penses, high cost of repairs and maintenance o f equipment and changes in the

11 241

character of business location (bypass roads) 304 170

5. Seasonal conditions including floods and droughts 6. Excessive interest payments on hire purchase and loan moneys and capital losses 71 81

on repossessions 47 142

7. Inability to collect debts due to disputes, faulty work or bad debts 8. Excessive drawings including failure to provide for taxation either personal or 60 75

wage tax deductions 118 143

9. Gambling or speculation 10. Personal reasons including illhealth o f self o r dependents, domestic discord and 20 13

other personal reasons 71 133

11. Other business reasons o r reason unknown 56 59

TENTH SCHEDULE PART B

CAUSES O F NON-BUSINESS BANKRUPTCIES BEING BANKRUPTCIES OF WAGE AND SALARY EARNERS, PENSIONERS, AN D ALL OTHER PERSONS HAVING NO REMUNERATIVE EM PLOYM ENT

1. Excessive use of credit facilities including pressure selling, interest payments 2. Liabilities incurred on guarantees 3. Unemployment 4. Gambling, speculation and extravagance in living

5. Absence of health insurance or extensive ill health 6. Adverse litigation 7. Domestic discord 8. Other causes or cause unknown

losses on repossessions and high

M ajor cause

366 42 247 41 233

46 68 77

18

ELEVENTH SCHEDULE

Graph show ing Bankruptcies, Orders for the Administration of the Estates of Deceased Debtors and Arrangements with Creditors under Parts XI and XII of the Bankruptcy Act 1924-1965 or Part X of the Bankruptcy Act 1966-1970 for the years 1928/1929 to 1972/1973 inclusive

Notes: Bankruptcies and Orders for the Administration of the Estates of Deceased Debtors shown thus. Arrangements with Creditors shown thus________ The statistical period was changed from the year ending 31 July to the year ending 30 June on 30 June 1956. The Bankruptcy Act 1966-1970 came into operation on 4 March 1968.

3,000- -

2,000 - -

1,000 - - - - 1,000

~ ~ r ~

1939/40 1928/29 1949/50 1959/60 1969/70

TWELFTH SCHEDULE PART A

ESTATES OF BANKRUPTS AND DECEASED DEBTORS U N DER AD M INISTRA TIO N BY O FFICIA L RECEIVERS

Bankruptcy District N um ber o f estates under administration as at 30 June 1972

Received during the year Closed during the year N umber o f estates under administration as at 30 June 1973

New South Wales and Australian Capital Territory . . 5,303 521 1,167 4,769

Victoria . . . 2,662 452 704 2,682

Southern Queensland 662 192 207 756

Central Queensland . 29 5 25 29

Northern Queensland 131 31 128 140

South Australia . . 1,389 538 1,152 1,302

Western Australia . 1,486 364 538 1,395

Tasmania . . . 941 151 391 786

Total . . 12,603 2,254 4,312 11,859

Notes: (1) N umbers shown in second and fifth columns do not include estates under administration but in respect of which no funds were held at the relevant date. (2) Numbers shown in fourth column include estates transferred to a trustee upon appointm ent by creditors. (3) Numbers shown in the fifth column include estates reopened during the year. (4) Numbers for D istrict of South A ustralia include bankruptcies for District o f the N orthern Territory.

TWELFTH SCHEDULE PART B

AM OUNTS RECEIVED AND DISBURSED BY OFFICIAL RECEIVERS DU RIN G YEAR EN D ED 30 JU N E 1973

Bankruptcy District Balance to credit o f Account as at 30 June 1972

Received during the year Disbursed during the year

Balance to credit of Account as at 30 June 1973

New South Wales and Australian Capital Territory . . 3,210,228 1,758,271 1,741,427 3,227,072

Victoria . . . 1,614,898 977,957 776,686 1,816,169

Southern Queensland 455,385 591,057 451,309 595,133

Central Queensland . 11,424 21,431 23,875 8,979

Northern Queensland 86,301 103,451 92,437 97,316

South Australia . . 535,623 683,271 744,365 474,529

Northern Territory . 22,567 51,287 45,934 27,920

Western Australia . 637,568 577,454 528,744 686,278

Tasmania . . . 423,115 307,626 288,455 442,286

Total . . 6,997,109 5,071,805 4,693,232 7,375,682

20

TWELFTH SCHEDULE PART C

8 .000.000 8 , 000.000-

7.000,000-

Graph showing balances to the credit of the Official Receivers' Estates Account for the years 1935/1936 to 1972/1973 inclusive.

Notes: Salaried Official Receivers commenced operating in all Bankruptcy Districts from 1 July 1934. The statistical period was changed from the year ending 31 July to the year ending 30 June as from 30 June 1 956.

6 .000.0 0 0 - - - - 6,000,000

5,000,000-- - p 5,000,000

4.000.000- - - - 4,000,000

3.000.000- -

2 .000 .0 0 0 - - - - 2,000,000

$209,700"

1935/36 1939/40 1949/50 1959/60 1969/70

PROSECUTIONS OF BANKRUPTS

THIRTEENTH SCHEDULE

No. Section of Act N ature of offence Result

1

District of New South Wales and Australian Capital Territory

1 265(1.) (a) . Failure to disclose property Convicted and sentenced to 9 months imprison­

ment with hard labour

2 269 (a) . Obtaining credit without disclosing

he was an undischarged bank­ rupt (4 charges)

Convicted on each charge and released on entering into bond of $100 to be of good behaviour

3 270(1.) (a) . Failure to keep proper books of

account

Convicted and released on entering into bond of $100 to be o f good behaviour

District of Victoria

4 267 . . M aking material omission from

statement o f affairs (2 charges) Convicted and sentenced to 7 days imprisonment on each charge, sentences to be served concurrently

5 269 (ό) . Bankrupt carrying on business in a

name other than his own with­ out disclosing true name and fact of bankruptcy (2 charges)

Convicted on each charge and released upon enter­ ing into a bond o f $200 to be of good behaviour for 2 years with a similar surety

6 271 (a ) . Contributing to insolvency by rash

and hazardous speculations Convicted and released upon entering into bond of $20 to be o f good behaviour for one year, to appear before the Court on 26 November 1973

and to pay sum of $60 per month to Official

Receiver

7 271(a) . Contributing to insolvency by rash

and hazardous speculations Convicted and released upon entering into bond of $100 to be of good behaviour for 2 years

8 271(a) . Contributing to insolvency by

gambling

Convicted and sentenced to one m onth’s imprison­ ment

District of South Australia

9 265(1.) (A) . Failure to give full and proper ex-

planation of loss of assets

10 265 (5.) (b) . Obtaining credit by fraud (2

charges)

11 '265 (5.) (ό) . Obtaining credit by fraud

269(a) . Obtaining credit without disclosing he was un undischarged bank-rupt (2 charges) 271 (a) . Materially contributing to insol-

vency by gambling

12 265 (7.) . Obtaining credit by fraud

13 265 (7.) . Obtaining credit by fraud

Convicted and sentenced to 3 months imprison­ ment to be released after serving 14 days upon entering into bond o f $200 to be of good be­ haviour for 2 years and to pay $10 per week to trustee

Convicted and sentenced to 6 months imprison­ ment on each charge, sentences to be served concurrently and to be released on entering into bond of $200 to be of good behaviour for 2 years

Convicted and sentenced to 3 months imprison­ ment Convicted and sentenced to 14 days imprisonment on each charge

Convicted and sentenced to 3 months imprison­ ment

All four sentences to be served concurrently with a non-parole period of 1 month

Convicted and sentenced to 4 months imprison­ ment to be released after 14 days on entering into bond to be of good behaviour for 3 years

Convicted and sentenced to one m onth’s imprison­ ment to be released on rising of the Court upon

22

PROSECUTIONS OF BANKRUPTS— continued

No. Section of Act N ature of offence Result

entering into bond of $200 to be of good be­

haviour for 2 years, to pay to trustee sum o f $5 per week for 6 months and thereafter $10 per week for the remainder o f the period o f the bond

14 266 (.1) . Disposing of property with intent

to defraud creditors

Convicted and released on entering into bond of $100 to be of good behaviour for 2 years

15 269 (a) . Obtaining credit without disclosing

he was an undischarged bankrupt Convicted and sentenced to one m onth’s im prison­ ment to be released after serving 3 days on enter­ ing into bond of $100 to be of good behaviour

for one year

16 269(a) . Obtaining credit without disclosing

he was an undischarged bankrupt Convicted and sentenced to 14 days imprisonment to be released after serving 3 days on entering into bond of $ 100 to be of good behaviour for one year

17 269 (a) . Obtaining credit without disclosing

he was an undischarged bankrupt Convicted and sentenced to 6 months imprisonment to be released after serving 2 m onths on entering into bond of $200 to be of good behaviour for

2 years

18 269 (a) . Obtaining credit without disclosing

he was an undischarged bankrupt Convicted and released on entering into bond of $100 to be of good behaviour for one year

19 269(a) . Obtaining credit without disclosing

he was an undischarged bankrupt Convicted and released on entering into bond of $200 to be of good behaviour for 2 years

20 269 (a) . Obtaining credit without disclosing

he was an undischarged bankrupt Convicted and released on entering into bond of $200 to be of good behaviour for 2 years and not to obtain credit for more than $50 during that

period

21

■ <

'2 6 9 (s) .

269 (6) .

Obtaining credit without dis-^ closing he was an undischarged bankrupt (2 charges) Bankrupt carrying on business

under assumed name without disclosing true name and fact of bankruptcy (2 charges)^

-

Convicted on all 4 charges and sentenced to 2 months imprisonment on each charge such sen­ - tences to be served concurrently and to be

released after serving 6 days on entering into bond of $200 to be of good behaviour for 2 years under supervision of probation officer

22 269 (6) . Bankrupt carrying on business

under firm name without dis­ closing true name and fact of bankruptcy

Convicted and released on entering into bond of $100 to be of good behaviour for 3 years

23 271(a) . Materially contributing to insol­

vency by hazardous speculations Convicted and sentenced to 3 months imprison­ ment

24 271 (a) . Materially contributing to insol­

vency by hazardous speculations Convicted and sentenced to 4 months imprisonment with a non-parole period of one month

25 271(a) . Materially contributing to insol­

vency by hazardous speculations Convicted and released on entering into bond of $200 to be of good behaviour for 2 years

26 271(a) . Materially contributing to insol­

vency by gambling

Convicted and sentenced to 3 weeks imprison­ ment

District of Southern Queensland

27 f 265 (8.) . Contracting debt of $500 or up- Convicted and released on entering into bond of

wards without reasonable ex- $250 to be of good behaviour for 5 years and to 1 pectation of payment pay $13 costs

23

PROSECUTIONS OF BANKRUPTS—continued

No. Section o f Act N ature of offence Result

27 Γ271(a) . Materially contributing to insol- Convicted and released on entering into bond of

< 1

vency by gambling $250 to be of good behaviour for 5 years and to

abstain from all forms o f gambling during that

l period and to pay $2.50 costs

District of Western Australia

28 271 (a) . M aterially contributing to insol- Convicted and sentenced to imprisonment until the

vency by gambling rising of the Court

FOURTEENTH SCHEDULE PART A

STATEM ENT OF RECEIPTS AN D EX PEND ITU RE ON ACCOUNT OF BANKRUPTCY BRANCH FO R YEAR EN D ED 30 JU N E 1973 SHOW ING ALSO COMPARATIVE AM OUNTS FO R YEAR EN D ED 30 JU N E 1972

Particulars of Receipts Particulars of Expenditure

Year ended Year ended Year endec

30/6/73

Year ended

30/6/73 30/6/72 30/6/72

$ $ $ $

Fees and percentages payable Salaries o f permanent and tern-

under the Act and Rules . . 1,018,753 825,078 porary employees . . .

Services of State Judges and 1,657,439 1,343,282

Add: Officers ................................. 7,822 7,753

Unclaimed Dividends and Undis- Salary of Judge of Federal Court

tributed Balances paid into

Consolidated Revenue Fund under section 254 of the Bank­ ruptcy A ct 1966-1910 . . . 63,160 39,974

o f Bankruptcy . . . .

Postage, telegrams and tele­ phones .................................

Travelling and subsistence . . Miscellaneous . . . .

24,870

43,083 29,072 61,531

23,000

34,794 27,399 49,342

1,081,913 865,052

Less: Rent of Buildings:

Refunds under section 254 and $ $

other refunds of Revenue . . 5,175 6,992 Sydney . . 5,400 (5,400)

Melbourne . 40,812 (40,812)

150,982 112,111

Adelaide . 46,280 (46,280) Perth . . 27,935 (12,383)

H o b a rt. . 11,040 (7,236)

Brisbane . 19,515 (Nil)

1,076,738 858,060 1,974,799 1,597,681

24

F O U R T E E N T H S C H E D U L E P A R T B

Annual revenue received on account of the Bankruptcy Branch for each year from and including the year 1928-1929 expressed as a percentage of the annual expenditure incurred on account of the Branch.

Revenue for year ended 30 June 1973 $1,076,738

Expenditure for year ended 30 June 1973 $1,974,799

1929/30 1939/40 1949/50 1959/60 1969/70

120

-■ 1 0 0

-■80

•■20

FIFTEENTH SCHEDULE

STAFF STATISTICS

ESTABLISHM ENT OF BAN KRUPTCY BRANCH AS AT 30 JU N E 1973

CENTRAL O FFICE AN D PERSONAL STAFF OF FED ERA L JU D G E IN BANKRUPTCY

Central Office

Personal Staff Federal Judge in Bankruptcy

2ND D I V I S I O N ............................................................................................................. 1

3RD D I V I S I O N ............................................................................................................. — 1

4TH D I V I S I O N ............................................................................................................. 1 2

T o t a l ..................................................................................................................... 2 3

REGISTRARS’ SECTIONS

New South Wales and Australian Capital

Territory

Victoria Southern Queensland South Australia

Western Australia

Tasmania Total

3RD DIVISION . 4 4 3 4 3 1 19

4TH DIVISION . 6 3 3 2 2 1 17

Total . . 10 7 6 6 5 2 36

OFFICIAL RECEIVERS’ SECTIONS

New South Wales and Australian Capital

Territory

Victoria Southern

Queensland

N orthern and Central Queensland

South Australia

N orthern Territory

Western Australia

Tasmania Total

3RD DIVISION 36 32 13 3 32 22 10 148

4TH DIVISION 27 26 8 2 22 13 8 106

Total . 63 58 2! 5 54 35 18 254

R72/2834

26