NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Business

Covid 19 Delta outbreak: Auckland, Northland businesses show high debt stress

Tamsyn Parker
By Tamsyn Parker
Business Editor·RNZ·
2 Nov, 2021 05:27 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The Northern part of Northland will move to level 3 from 11.59pm tonight until at least next Monday night. Video / Mike Dinsdale / Mark Mitchell / Dean Purcell / Michael Craig

Auckland and Northland businesses are showing increased signs of debt stress as Auckland's alert level 3 lockdown continues to wind on.

Auckland business debt defaults are up 18 per cent this year compared to 2019 in pre-Covid times and Northland business debt defaults are up 12 per cent, according to credit bureau Centrix.

Keith McLaughlin. Centrix managing director, said the rise was a "stark reminder" of the ongoing challenges business owners across many sectors in Auckland are facing.

"Auckland and Northland have recorded increased levels of debt stress compared to the rest of New Zealand. As alert level 3 remains in place in Auckland - and following Northland's snap lockdown – uncertainty is hampering small business as they try to operate under restricted conditions."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

McLaughlin said the Government's recent traffic light announcement had given Kiwis a target to aim for to begin reopening, allowing them a small amount of certainty to start planning.

"The question is whether this certainty is enough for many small businesses – especially those in Auckland – who are continuing to feel the crunch from the ongoing lockdown."

McLaughlin also pointed to recent research from the Auckland Chamber of Commerce in which a survey found 20 per cent of owners did not expect their business to survive Covid.

Rental and property services businesses were showing the highest percentage of debt defaults - around 30 per cent higher than in pre-Covid times, followed by financial services and transport businesses.

Advertisement
Advertise with NZME.

But on the flipside information services businesses had seen a 40 per cent drop in debt defaults.

Businesses in the education and training, arts and recreation services, mining and public administration had also seen a drop in their percentage of debt defaults.

The average default amount is around $4000. Debt defaults were up 3 per cent in October alone compared to October last year while new company registrations fell 13 per cent.

Centrix managing director Keith McLaughlin. Photo / Supplied
Centrix managing director Keith McLaughlin. Photo / Supplied

McLaughlin said demand for credit like mortgages, credit cards and personal loans had risen and flattened off since the start of this lockdown on August 17.

Discover more

New Zealand

Covid 19 Delta outbreak: Level 3.2 risks later, longer peak - modeller

02 Nov 04:44 AM
New Zealand|politics

Jacinda Ardern to travel to Auckland after rule change

02 Nov 03:58 AM
Education

Auckland University says its 40,000 students will need Covid vaccine to visit campus

02 Nov 03:13 AM
World

New country records worst-ever Covid outbreak

02 Nov 08:05 AM

While the rest of the country had returned to pre-lockdown levels Auckland remained at 85 per cent of its pre-lockdown level.

"We are also seeing an increase in financial hardship, which has risen 15 per cent during lockdown, and jumped 8 per cent in just the last month."

Lending from the non-bank and auto finance sectors had bounced back to pre-lockdown levels.

"There continues to be growth in non-bank consumer loans as well as auto loans."

Demand for homeloans had bounced back after the initial drop-off caused by the August lockdown but were not back to pre-lockdown levels.

"Mortgage applications increased in October as confidence remains high in the property market outside of Auckland.

Advertisement
Advertise with NZME.

"New mortgage lending, however, remained flat in August and September. Whether this is a result of the lockdown delaying settlement, a signal that demand continues to outstrip supply, or an early sign of banks tightening lending criteria, remains to be seen, " McLaughlin said.

Credit card applications remain low compared to historical levels.

"While some economic indicators remain strong, inflation is on the rise, the housing market is softening and the Reserve Bank has made its first move to tighten monetary policy. This all points to a more constrained credit market as we head into the festive season."

Save

    Share this article

Latest from Business

Business

United Airlines profits dip, company says world getting 'less uncertain'

Business
|Updated

Lower Hutt sushi restaurant fined $30k for exploiting vulnerable worker

Business

Food stats shock: Prices soar as fruit and veges follow butter spike


Sponsored

Tired of missing out on getting to global summits to help grow your business?

Advertisement
Advertise with NZME.

Latest from Business

United Airlines profits dip, company says world getting 'less uncertain'
Business

United Airlines profits dip, company says world getting 'less uncertain'

Revenues rose 1.7% to US$15.2 billion, compared with the previous year.

17 Jul 12:19 AM
Lower Hutt sushi restaurant fined $30k for exploiting vulnerable worker
Business
|Updated

Lower Hutt sushi restaurant fined $30k for exploiting vulnerable worker

17 Jul 12:09 AM
Food stats shock: Prices soar as fruit and veges follow butter spike
Business

Food stats shock: Prices soar as fruit and veges follow butter spike

16 Jul 11:24 PM


Tired of missing out on getting to global summits to help grow your business?
Sponsored

Tired of missing out on getting to global summits to help grow your business?

14 Jul 04:48 AM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP