EXPLANATORY STATEMENT
International Interests in Mobile Equipment (Cape Town Convention) Commencement Proclamation 2015
Item 2 of the table in subsection 2(1) of the International Interests in Mobile Equipment (Cape Town Convention) Act 2013 (the Act) provides that sections 3 to 10 of that Act commences on a day to be fixed by proclamation. However, if any of the provisions do not commence within six months of the date the Cape Town Convention comes into force for Australia, then those provisions commence on the first day after the end of that six month period. The Cape Town Convention will enter into force in Australia on 1 September 2015.
The purpose of the Proclamation is to fix 1 September 2015 as the day on which sections 3 to 10 of the Act commence.
Sections 3 to 10 enable the Convention to enter into Australian law by empowering Australian courts to enforce the Convention, aligning domestic law with the Convention and outlining the geographical and legal scope of the Convention. Once proclaimed the Convention will increase the protection of creditor interests in aircraft assets and concurrently reduce their risk—thereby resulting in increased access to cheaper aircraft asset financing for the Australian aviation industry.
The Proclamation would be a legislative instrument for the purposes of the Legislative Instruments Act 2003.
A range of consultation processes were conducted as part of the Cape Town Convention implementation process, including the release of discussion papers in 2010 and 2014. Industry stakeholders (including law firms, airlines and financiers) provided a range of comments to ensure the Convention and the implementing legislative framework appropriately reflect the needs of industry and the community.