§ Lord Macaulay of Bragarasked Her Majesty's Government:
(1) What responses have been received following the publication of the Diamond Report A Review of Security Interests in Property;
966WA(2) when they will publish their proposals for reform in this area of law in the United Kingdom and, in particular, in relation to the existing prohibition in Scots law against the granting of security over moveable property without possession, which presently puts Scottish commercial enterprises at a disadvantage; and
(3) when they propose to ask the Scottish Law Commission to resume its work on floating charges and the consideration of responses to its Consultative Memorandum No. 72 Floating Charges and Receivers which was suspended while Professor Diamond carried out his review.
§ Lord StrathclydeA significant number of responses have been received to the proposals outlined in Part II of Professor Diamond's report,A Review of Security Interests in Property published by HMSO in January. Professor Diamond recommends radical reform in a complex area of the law which will need careful consideration. The Government will make public their conclusions, in the light of the responses received, in due course.
Professor Diamond's report pays particular attention to the restrictions of current Scots security law and these will be given due weight in the Government's consideration of what action should be taken in response to the report.
The question of whether the Scottish Law Commission decides to resume its work on floating charges and receivers will to some extent depend upon the conclusions the Government reach on Professor Diamond's report. The work was not suspended at the request of the Government.