Mr McCLELLAND (Attorney-General) (10:48 AM) —in reply—I would like to thank members for their contribution to the debate. As members are aware, the Personal Property Securities Bill 2009 will implement a significant reform to Australian secured financing laws. Secured financing using personal property is an important element of the Australian credit market, worth several billion dollars annually. The current arrangements for security interests in personal property are unnecessarily complex. They involve artificial distinctions about the nature and form of the transaction, the jurisdiction and other formalities. These sorts of distinctions are unnecessary and inappropriate in a modern economy and add unnecessary complexity and expense. The current law reflects the ad hoc development of common law and legislation in this area, including over 70 various acts among Commonwealth, state and territory legislatures.

In place of this complexity, the bill will implement a single national law creating a uniform and functional approach to personal property securities. As I said in my second reading speech, by streamlining lending arrangements in this way the bill will provide greater certainty for both lenders and borrowers. It will lower the risk for lenders, improve the efficiency of secured financing and increase competition among providers of finance. The bill will more closely align Australia’s secured transactions law with that in other jurisdictions. In doing so it will increase the confidence of international investors and creditors and should make it easier for Australian businesses and individuals to secure finance in international capital markets.

Australia’s new PPS system will be supported by a single national online register of personal property securities. The new register will replace the existing patchwork of electronic and paper based national, state and territory registers. Reducing the number of registers will alleviate the confusion currently faced by businesses and consumers in trying to work out which register they need to use. Making use of the latest technology will mean the register is state-of-the-art and easy to use. Users will be able to search the register via a web browser or alternatively via a mobile phone using SMS. High volume users will be able to establish a direct business-to-government link to access the register.

As I pointed out in my second reading speech, PPS reform is part of the ambitious deregulation agenda the government is pursuing through the Council of Australian Governments. It is an example of the government’s continued commitment to cooperation between the Commonwealth, states and territories on regulatory reform, and it must be acknowledged that this reform would not take place without their cooperation. By working together we are bringing about significant changes that are essential to the modern Australian economy.

I should also acknowledge the important work of the Standing Committee of Attorneys-General in advancing PPS reform, including developing model legislation to refer power to the Commonwealth to pass the PPS bill. When I introduced the bill into the House I said that the New South Wales parliament had become the first to refer power to the Commonwealth. I am pleased to also report that referral legislation was introduced in Victoria on 11 August, Queensland on 1 September and South Australia on 9 September, and I look forward to the remaining states progressing their referral legislation shortly.

In conclusion, existing secured lending arrangements create barriers to businesses, especially small businesses accessing secured lending. By harmonising the law in this area and creating a national PPS system the bill will generate real benefits for all parties involved in secured finance. The bill provides a national solution to meet a very important national need.

Question agreed to.

Bill read a second time.

Ordered that the bill be reported to the House without amendment.