On Friday, 21 August 2009, the Senate Legal & Constitutional Affairs Committee ("the Committee") tabled its report ("Report") in the Senate on the Personal Property Securities Bill 2009 ("PPS Bill").
The Committee has recommended that, subject to a further period of public consultation in respect of the PPS Bill until 30 September 2009, the PPS Bill be supported.
Background
Over the past two years, we have updated you on the process that has led to the PPS Bill being introduced into Parliament. The first exposure draft of the PPS Bill was released in May 2008, followed by a significantly amended further exposure draft in November 2008.
On 19 March 2009, the Committee tabled its report in the Senate on the second exposure draft of the PPS Bill. In its report, the Committee recommended, among other things, that the Federal Attorney General's Department ("Department") delay the commencement of the scheme by at least 12 months to May 2011.
The Department accepted most of the Committee's initial recommendations and the PPS Bill was introduced into the House of Representatives on 24 June 2009. The PPS Bill was then referred to the Committee the next day for a further inquiry.
Update – the Report
In the Report, the Committee praises the Department for adopting its previous recommendations by making vast improvements to the exposure draft of the PPS Bill. However, the Committee also raises concerns about the haste of the process and identifies unresolved technical issues and general stakeholder concerns.
The Committee has endorsed the PPS Bill, subject to a further brief consultation period ending 30 September 2009 during which it recommends that the Government:
- consider stakeholder concerns including the concerns submissions raised to the Committee;
- provide greater transparency in relation to policy considerations and choices via the Department's website; and
- introduce a consequential amendments bill dealing with required changes to the PPS Bill that are determined during the further consultation period.
It remains to be seen what action the Government will take in relation to Committee's recommendations. We note that the Government has stated that it will consider delaying the commencement of the scheme and is expected to make an announcement shortly. We will continue to keep you updated on any further developments.
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