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Wednesday, 12 October 2011
Page: 11554

Mr McCLELLAND (Barton—Attorney-General) (10:20): I move:

That this bill be now read a second time.

The Personal Property Securities Amendment (Registration Commencement) Bill amends the Personal Property Securities Act (PPS Act) to ensure that the PPS Act does not commence operating before the PPS Register can be made available for public use.

The PPS Register will be the single national online register of personal property securities which underpins this significant law reform.

The PPS Act, which was passed by the parliament in 2009, created one national law with one set of rules governing interests in property other than land that secure debts or other obligations.

The effect of the PPS Act is to simplify over 70 Commonwealth, state and territory laws, common law and the rules of equity, which govern security interests in personal property. It will also replace the many registers of personal property security interests that complement these state and territory acts, with the PPS Register.

PPS reform is a significant part of the Council of Australian Governments' deregulation agenda. The reform will deliver major benefits for business and consumers by reducing transaction costs, making lenders more willing to accept different kinds of personal property as security for loans and also facilitating the extension of credit to borrowers. The purpose of the bill is to amend the definitions of the migration time and the registration commencement time so that I can determine a time other than the default times that are contained in the PPS Act.

If I do not determine an earlier time, the migration time will be 1 January 2012 and the registration commencement time will be 1 February 2012.

This amendment will enable me to determine another time for both the migration time and the registration commencement time which could be earlier or later than the default times that are contained in the act.

The ability to determine the commencement of the PPS register will assist government to ensure that stakeholders have confidence that the online PPS register will operate effectively.

Conclusion

A comprehensive and consistent national PPS register will benefit many sectors in the Australian economy. These reforms will streamline the way in which lenders conduct their businesses, facilitate the extension of credit to borrowers and reduce borrowing costs. I am pleased that this reform is very close to becoming a reality.

Debate adjourned.