Insolvency and Trustee Service Australia
Opening of New Office
201 Elizabeth Street, Sydney
Thursday 28 February, 5.30pm
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Acknowledgements
- First, may I acknowledge the traditional owners of the land we meet on – and pay my respects to their elders, both past and present.
Other Acknowledgements
- Chair – Terry Gallagher, Inspector General in Bankruptcy and Chief Executive of Insolvency and Trustee Service Australia
- Ladies and gentlemen
Introduction
1. If there’s one thing that keeps making headlines at the moment, it’s money – and it’s not that positive:
- interest rates
- mortgage stress
- rollercoaster rides on the stock market
2. Times like this reinforce how important it is to have strong systems in place to help boost the economy and Australia’s prosperity.
3. I am very pleased to have the opportunity to meet so many of you who contribute to such a system.
A Strong System
4. An efficient and effective personal insolvency system is vital to a strong economy.
It must enjoy public confidence and in particular, the confidence of creditors.
As Benjamin Franklin once said creditors have better memories than debtors.[1]
5. We are fortunate in Australia to have a strong bankruptcy system.
6. This is largely thanks to the Insolvency and Trustee Service Australia (ITSA) and your partnership with key players – like trustees, lawyers, financial counsellors, debt agreement administrators, and creditors.
7. The work you do together is critical in delivering excellent services, and also informing the Government about improvements that can be made.
8. I am certainly looking forward to working with you to maintain the strength of our system – and to continue our good standing internationally.
9. I know the Australian system is recognised as leading the world in many ways.
And it should be a source of pride for ITSA that your members have often been asked to contribute to the development of systems in other countries.
10. This includes the Asian region, where, thanks to the support of ITSA, insolvency regimes have been improved.
This has been vital in dealing with very difficult economic conditions.
Recent Reforms
11. On the home front, I know there has been a lot of activity in bankruptcy reform in recent years.
12. Many of you have contributed to the development of these reforms and I look forward to hearing from you about how we can maintain our high standards – both in terms of bankruptcy law and practice.
13. I know our system is well placed to provide relief to community members who are suffering under the weight of unmanageable debt.
14. We also need to make sure our system is well placed so that creditors receive payments in an orderly way, and that the small number of debtors who try to avoid paying their debts cannot use bankruptcy improperly.
Creditors and the community must have confidence that any attempts to do so will fail.
15. On that point, I have received the final recommendations from the review of bankruptcy offences that was recently completed by ITSA and my Department. I am considering the report carefully.
16. Another point I’d like to mention is the importance of debtors having viable alternatives to bankruptcy.
17. Most debtors don’t want to become bankrupt.
In fact, many are both willing and able to come to a voluntary arrangement with creditors.
18. The debt agreement system was significantly reformed last year to restore creditor confidence, and I will be monitoring the effectiveness of those reforms.
19. Debt agreements will only work with the support of creditors.
It’s therefore important that creditors view these agreements as a genuine attempt by debtors to deal with financial difficulty.
This is particularly so when bankruptcy might not be the best result for anyone.
20. I think it’s exciting to be able to look to the future, knowing that we can make strategic improvements and continue to strengthen our system.
Sydney History
21. Certainly when we look to the past, it’s clear that ITSA and its predecessors have a long and colourful history here in Sydney.
22. When the first Commonwealth bankruptcy laws were passed in 1924, the New South Wales administration was influential in designing the national system and determining how it would work.
23. New South Wales was permitted to retain its system of non-salaried Official Receivers well past the commencement of the new Commonwealth laws.
They argued successfully that it was more economical for Official Receivers to be remunerated by fees and commission than by the Commonwealth paying them a salary.
24. The Sydney office was also important in effectively having oversight of the introduction of the 1966 Act – which is still in force today – as the Inspector-General of the time was based here.
25. I know that the skills and tenacity of Official Receivers and other officials here in Sydney were admired by many.
And I have no doubt that others saw them as quite ruthless.
26. But it was their skills that were invaluable in developing the reputation of Australia’s bankruptcy administration.
27. Names like
- Jack McCombie
- Brian Wilson
- Noel Bluett, and
- George Caddy
continue to enjoy a somewhat legendary status in bankruptcy circles.
28. Even the location of the Official Receiver’s office has become quite notorious.
29. I’m sure many of you are familiar with the expression ‘going up King Street’, which is the equivalent of ‘going bust’.[2]
Bankruptcy Congress
30. Another important innovation that was introduced by ITSA’s Sydney office was the first national Bankruptcy Congress held here in 1996.
31. Occurring every two years, it has become the premier event of its type in the personal insolvency sector.
32. I’m pleased to say the Congress is returning to Sydney later this year, and I’m looking forward to opening it.
I’m sure it will be another highly successful event.
There is a wealth of experience from those organising it – from ITSA and the wider insolvency community.
Conclusion
33. Today, the focus is on another achievement – perhaps not quite as grand an occasion as the Congress but nonetheless important.
34. The ITSA Sydney office has a new location.
And I must say – your outlook is good.
35. I know this is a very busy office, so it’s great to see you’re centrally located for business efficiency.
36. Congratulations on the move.
I wish you all continued success, and I look forward to working with you.
37. It is now my pleasure to officially open the Sydney office of the Insolvency and Trustee Service Australia.
[1] Benjamin Franklin (1706-1790), scientist, writer, politician & one of the Founding Fathers of the USA
[2] The old New South Wales Bankruptcy Court was located on King Street.