Tanner rules out e-conveyancing cash

The Australian
Chris Merritt | August 21, 2009

THE appointment of Peter Harris to a senior role in the federal public service coincides with the government's refusal to provide $20 million in seed funding for the national e-conveyancing system.

Finance Minister Lindsay Tanner and Deregulation Minister Craig Emerson have outlined the government's position in a letter to Les Taylor, who chairs the national electronic conveyancing system steering committee.

Mr Taylor, a former general counsel of the Commonwealth Bank, had warned in May that unless repayable seed funding of $20m was provided for the national project, it was at risk of "complete failure".

In their response, Mr Tanner and Dr Emerson told Mr Taylor that the federal government had already agreed to give the states $550m as part of an agreement in which the states would undertake 27 projects, including a national e-conveyancing system.

That agreement includes payment of $100m in "up-front facilitation funding in 2008-09".

"Facilitation funding is not tied to any specific reform and its allocation is a decision for the states and territories," they wrote.

"It is the view of the commonwealth that this amount is sufficient to fulfil these obligations and no further funding will be allocated to facilitate delivery of the agreed reforms."

The agreement with the states shows that none of the $550m has been earmarked for the e-conveyancing system.

If the states fail to meet their commitment to establish the system, they could still receive their full reward payments from the commonwealth so long as they make progress in other areas covered by the agreement.