Page 1732 - Week 07 - Tuesday, 29 May 1990
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
means that this Bill will need to be read in conjunction with the New South Wales Act.
Under the scheme a financier will be able to record publicly an interest on the register as evidence to a prospective purchaser of that financier's interest. Likewise, a purchaser will be able to search the register to ascertain the status of a particular vehicle at the time of purchase. Financiers who record their interests on the register will be deemed to have advised intending purchasers of their existence. The Bill as drafted will not place a legal obligation on a financier to register an interest, but failure to do so may see that financier lose the interest in favour of a purchaser who would not have been aware of that interest. Financiers will of course retain their right to pursue the debt against the original debtor.
Participation in the New South Wales scheme of registration will prove the most economic means of establishing a chattel encumbrance register for the Territory. Apart from an initial start-up cost to the Territory of $110,000, for which funds have already been provided in the 1989-90 budget, the scheme will be self-funding from the income received from charges imposed for the registration of interests and the provision of search certificates.
I should hasten to add, Mr Speaker, that the adoption of the New South Wales scheme does not mean that this Government can or will always accept legislation prepared by other States. This Government is committed to the development of the best possible consumer legislation. On this particular occasion, however, the adoption of the New South Wales scheme provides a unique opportunity of establishing the best possible scheme without any recurring costs.
A written agreement formalising arrangements between the New South Wales and Territory governments will be signed once this Bill is passed. All other administrative arrangements necessary for the commencement of the scheme have been completed. The Director of the ACT Consumer Affairs Bureau has conducted a number of seminars for the benefit of members of the motor and finance industries on how the scheme will operate. The Director of Consumer Affairs has also embarked on a program to encourage all financiers to record their interests on the register in order to gain the protection of the scheme immediately it becomes operational.
Under the scheme, ACT residents will have access to a telephone service which will provide free advice to consumers on whether a particular vehicle has a financial encumbrance registered against it. Consumers will also be able to obtain a search certificate at a cost of $6, verifying the status of a vehicle, which will be valid until midnight of the day after the certificate was issued. Consequently, a buyer will be able to finalise a purchase within that period without the need to make a further search of the register.
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .