The editor and co-owner of the Norfolk Islander newspaper, Derek Gore says there's a real possibility that Norfolk Island could become insolvent without the intervention of Australia.
Mr Gore's comments follow Australia's proposal to reduce Norfolk Island's powers of self government because they say the territory's current arrangements are financially unstable.
Derek Gore says since 2001 the island's economic situation has been slowly falling away, and it would be hard for the current administration to prevent insolvency.
"And Australia is certainly not going to let it fall into insolvency we can have no doubt about that whatsoever, so really now it's just a negotiation phase to see what legislation and what laws can remain in place by this Norfolk Island government to maintain certain services here, and what physically can't be maintained due to lack of funds, and in agreement to those two to hand those back to Canberra."
