Legislative Assembly for the ACT: 2010 Week 04 Hansard (Tuesday, 23 March 2010) . . Page.. 1238 ..
occurred in December 2009. By introducing consequential amendments and beginning the process of transition early, the government is giving as much time as possible for residents of the territory to become aware of the changes and to prepare themselves.
The bill also gives the maximum amount of time for processes in the territory to be adjusted to reflect the reform. Enactment of this consequential legislation now will give the Registrar-General the authority to begin transitioning material to the new commonwealth register. Beginning this process early will ensure that the territory is fully prepared for the commencement of the new system. The Personal Property Securities Bill 2010 will give certainty to the community about an important economic reform and will ensure that the territory welcomes the new system with every measure in place to secure its economic benefits. I commend it to the Assembly.
MR CORBELL (Molonglo—Attorney-General, Minister for the Environment, Climate Change and Water, Minister for Energy and Minister for Police and Emergency Services) (12.21), in reply: I would like to thank members for their contribution to the debate today. The Personal Property Securities Bill 2010 implements an important national reform in the territory. The bill represents one of the government’s contributions to the ongoing national personal property securities reform.
The national reform program is designed to make obtaining credit and doing business easier and safer for all Australians. It does this by harmonising all state and territory legislation into a single commonwealth law and by consolidating information that was previously spread throughout numerous locations into a single, definitive commonwealth register. The commonwealth has already enacted the law, which is the Personal Property Securities Act 2009. The register is currently under construction and is expected to begin operating in May 2011.
In considering this bill, I would like members to focus on the three most important aspects of the reform as it relates to the territory: the national reform process will improve economic conditions for both businesses and consumers in the territory; the bill has been drafted to ensure that the transition from territory regulation of this matter to commonwealth regulation occurs smoothly; and the bill will ensure that important territory interests are protected throughout the coming changes.
First, I will detail the benefits that will flow to the territory from this reform. Personal property securities consist of any agreement that uses personal property, as opposed to land, to secure payment or performance of an obligation. As I explained in introducing the bill, an automobile loan is the most typical example. When you obtain finance to purchase a car, the bank normally retains an interest in the car to secure repayment of its loan. The car secures payment of the loan because, if the loan is not paid back, the bank has the ability to take the car to help satisfy the outstanding amount.
Under existing ACT law, the interest of the bank in this example must be registered. The purpose of registration is to ensure that, if the car is sold without the bank’s knowledge, the buyer is able to discover the existence of the outstanding loan. This prevents people from buying a car with the bank’s money and then selling the car