HL Deb 12 February 1986 vol 471 cc281-2WA
The Earl of Selkirk

asked Her Majesty's Government:

What were the reasons for the decision of the Department of Trade and Industry to set up an inquiry into the law governing the security of movables, not only for England but also for Scotland, where the law differs materially in this field.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)

There is general agreement that the Companies Act provisions on registration of charges and the wider law of security over movable property are unsatisfactory. Professor Aubrey Diamond has therefore been asked to examine the need for reform and make recommendations on the nature of any reforms required.

In particular, he will consider whether there is still a case for a single system of registration applicable to all such security interests on the lines proposed by the Crowther Committee in 1971, and whether charges created by companies should be part of such a system or continue to be registered separately at the Companies Registration Offices in Cardiff and Edinburgh.

His terms of reference specifically require him to take account of the desirability of having, so far as practicable, a uniform law throughout Great Britain, but the department fully appreciates the distinctive features of Scottish law and that there is no question of those features being ignored or discounted.

Professor Diamond is being assisted by Mr. A. J. Sim, who has considerable expertise in this area of Scottish Law as a result of his work with the Scottish Law Commission and his terms of reference require him to consult the Scottish Law Commission throughout the course of the review.

In addition, a number of further steps have been taken to ensure that differences of principle and approach between Scottish and English law are fully taken into account, including the setting up of an informal panel of experts in this area of Scottish law. Once Professor Diamond has reported his recommendations would be subject to wide consultation with both Scottish and English interests before work on any detailed proposals for reform were commissioned.