Personal Property Securities
Consultative Group Meeting


Australian Finance Conference Office,
Level 7, 34 Hunter Street, Sydney

Friday 16 May 2008, 11am

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Acknowledgements

Chair – Mr Ian Govey, Deputy Secretary,
Civil Justice and Legal Services Group, Attorney-General’s Department

Hosts – the Australian Finance Conference

Introduction

It’s a pleasure to join you today to speak about the progress of personal property securities reform.

I am sure you will all agree that it’s an exciting time for the reform.

Today I released an exposure draft of the PPS Bill.
It will be available for public comment until
15 August this year.

Also today my Department has released a Request for Tender that invites bids from information technology firms interested in building the national electronic register.

These are important steps in reforming the current – very cumbersome and fragmented – system.
And by doing so, we can gain tangible economic benefits.

As we are aware, lending secured by personal property is a multi-billion dollar industry in Australia, so its regulation needs to be as certain and seamless as possible.

But I don’t need to tell any of you that.

The Commonwealth Act that we are working toward, together with a single, national electronic register, will provide many practical benefits to consumers and business. 

Example

For example, I had correspondence recently from a motor vehicle dealer.

This dealer purchased cars in one jurisdiction, which were repairable write-offs in another jurisdiction.

However, the information did not show up on REVS.

Under the new system, there will be a direct communication line between our Register and the National Exchange of Vehicle and Driver Information System (NEVDIS).

NEVDIS will only have to communicate with a single, national register, rather than different State and Territory registers. 
There will also be no need for different agencies to pass on information within jurisdictions in order for it to appear on the register.

This will make the transfer of this important information more efficient and accessible.

The national legislation and Register will together:

The Draft Bill

Today’s release of the draft exposure Bill marks a significant point in the progress of PPS reform.
Your initial feedback has been a vital part of preparing the Bill for public consultation.
I look forward to hearing your views on the exposure draft in the coming months.

We have also prepared explanatory materials to accompany the draft Bill.
This will assist people in understanding what can be a complex and technical area of law.
The consultation period is an important time.
It gives practitioners, industry participants, academics, and members of the public the opportunity to comment on and contribute to PPS reform.
I will welcome constructive input.

To ensure we engage with a wide range of stakeholders, my Department will be holding seminars in Sydney, Melbourne, Perth and Brisbane at the end of the month.
This will be a great way to answer questions and receive feedback about the Bill.

I understand that you have been invited to speak, or nominate someone to speak, at the seminars.
I encourage you to do so.
You can play an important part in bringing PPS reform to the attention of a wider audience.

Intergovernmental Agreement

On a national note, I’m delighted that the Standing Committee of Attorneys-General has endorsed the Intergovernmental Agreement.

This is also a significant milestone – it provides the framework for the new national system.

SCAG has submitted the agreement to the Council of Australian Governments for its approval.

I anticipate the agreement will be signed once the final form of the Bill has been settled.

Challenges

We have achieved a great deal so far.
But I’m well aware there will be challenges ahead.
We will do our best to deal with the responses to the draft Bill.

However, at the end of the day, policy decisions will be necessary.

In making these, I will be guided by our goals to reduce red tape, and increase certainty and efficiency.
I will also be guided by you, the Consultative Group.
Another challenge is the building of the national register.

As I mentioned earlier, the procurement process to build the register commenced today.

Transferring information from existing registers to one national register won’t be easy.
We’ll have to look at all the technical and practical issues involved.

To do this, we’ll work closely with the professionals who are building the register, as well as the States and Territories.

I’m keenly aware that financial institutions, legal practices and other business will need to do a great deal of work to prepare for the new system.
This includes implementing new procedures and information technology that will enable interaction with the new legislation and register.

Part of the process of preparing for the reform will involve providing information for businesses on using the new register.

We’ll also run a public awareness campaign to ensure that the general public understands when and why the changes are being made.

Conclusion

I’d like to conclude by saying thank you to the Group.

Your work has been paramount to the success of the reforms and I think you’ll agree that we’re heading in the right direction.

You are each contributing to a reform that will enhance Australia’s position as an international financial centre, and a major centre for South East Asia. 

I know my Department greatly appreciates the feedback you’ve given it and we look forward to continuing this good relationship.  

ENDS