HC Deb 27 January 1989 vol 145 cc766-7W
Mr. Mans

To ask the Chancellor of the Duchy of Lancaster if his Department has received the report on security interests in property other than land commissioned from Professor Al Diamond in December 1985.

Mr. Maude

Yes. The report is published today by Her Majesty's Stationery Office. I would like to record my Department's thanks for Professor Diamond's work.

The terms of reference given to Professor Diamond were:

  1. (a) to examine the need to reform the law relating to mortgages and other interests in property other than land, including those arising from hire-purchase and sale with retention of title and in Scotland securities over moveables;
  2. (b) to consider the case for a single scheme of registration for such interests and in particular to consider the position of the registration of charges created by companies in the context of such a scheme.
  3. (c) to make recommendations as to the nature of any reforms required and as to how work in this area might best be carried forward.

The report covers two separate issues. In parts I and II, it proposes a radical revision of the current law affecting security interests. The recommendations are numerous and cover complex issues where change would have significant implications for the raising of business finance. They need careful consideration in the light of views from those in business whose interests would be affected. I am therefore inviting comments on the proposals detailed in part II of the report by 1 September 1989.

Part III of the report looks at the current system of registration of company charges and proposes a number of changes. Professor Diamond was able to make his proposals in this area available to my Department on an interim basis. The proposal in the Companies Bill relating to the registration of company charges reflect a number of his recommendations.

Copies of the report have been made available in both Houses.