Vital parties denied e-conveyance input

THE push for a national electronic conveyancing system has been thrown into turmoil after state governments held a secret meeting aimed at sidelining lawyers, banks and conveyancers.

The meeting endorsed a plan for the states to adopt versions of Victoria's state-based electronic conveyancing system that would be customised to include differences between the states.

They also established a new "national entity" to determine how electronic conveyancing is to be implemented.

These decisions appear at odds with decisions that have already been taken by a joint government and business group that is responsible for building a national e-conveyancing system.

The move by the states prompted warnings from the Law Council of Australia and Australian Bankers Association, which have long demanded a single national system to eliminate the cost of dealing with separate state systems.

ABA director Ian Gilbert said unless the states took account of the needs of lawyers and others in the private sector, there could be a very small take-up rate for any system they developed.

"The systems have got to work for the people who will be getting the money to pay the jurisdictions for operating the system," Mr Gilbert said.

"I would have thought that was a pretty simple economic fact.

"If it does not meet private sector requirements, you may end up with a white elephant."

Mr Gilbert's warning reflects the the view of John Corcoran of the Law Council, which has also been demanding a national system. They both said they were not told of the meeting and learned of its outcome via a press release by the Victorian Government.

Mr Gilbert said the positive aspect of the Melbourne meeting was that Victoria appeared to have reached agreement on a process leading to the other states gaining access to the intellectual property underpinning Victoria's state-based e-conveyancing system.

"We have been asking for that for a long time," he said.

"But the concern is that this meeting went on to devise a governance model for the national electronic conveyancing system."

The structure outlined by the states would be dominated by state officials, which is at odds with a structure developed by a rival organisation that includes private sector representatives.

Mr Corcoran said the essential requirement for any e-conveyancing system was that it must be acceptable to key stakeholders.

He said the Victorian state-based system was not being used because of concerns by lawyers and bankers and it was "absolutely critical" other state governments took account of their views.

"We want a system that can be used by any lawyer in Australia dealing with any property in Australia," Mr Corcoran said.

The meeting between the states took place in the Melbourne offices of Mallesons Stephen Jaques and was chaired by former NSW premier Bob Carr, who attended the meeting at the invitation of the Victorian Government.

After the meeting, the Victorian Government announced an agreement had been reached on "a framework and structure by which Victoria could transfer the intellectual property" in its state-based e-conveyancing system to a new "national entity".

This entity would be owned by the state governments and a board of government officials would determine the strategy for implementing the new system. It would also determine "operational considerations".

While the statement issued after the meeting did not refer to private-sector users of e-conveyancing, it said "special interest committees" would be established and these would report to the board.

The new structure is at odds with a decision backed by private sector bodies and all state governments except Queensland at a meeting in Canberra last month.

That meeting was called by the steering committee of an organisation known as the National Electronic Conveyancing System. It agreed to give private sector representatives key roles in a project tream charged with building a national e-conveyancing system.

Despite the apparent clash between the organisations, the Victorian Government last night said that nothing agreed upon in Melbourne replaced existing agreements. That statement was from a spokesman for Environment Minister Gavin Jennings, who is responsible for Victoria's electronic conveyancing system, which is known as ECV.

"The meetings held over two days this week in Melbourne have been at officer level from all the jurisdictions, with the aim of establishing the basis of an agreement for all states and territories to have access to the ECV intellectual property," it said.

"The minister is pleased that agreement at this level has been reached. The detail of this agreement reached at officer level will now be considered at a higher level in all jurisdictions, before being taken forward.

"Nothing in the agreement reached this week supersedes or replaces existing agreements, as all jurisdictions remain committed to the establishment of a national EC system."

Chris Merritt, Legal affairs editor | March 07, 2008 | The Australian