NECS - THE NATIONAL PROJECT TEAM

A Stakeholder Working Group meeting was held in Canberra on 15 February 2008 to develop a consensus among stakeholders on arrangements for a National Project Team (NPT) to advance definition of the National Electronic Conveyancing System (NECS)

The meeting had more than 50 stakeholder representatives and industry participants present and after introductions was addressed by Ian Gilbert, Director of Australian Bankers Association (ABA) and John Corcoran, President‐elect of the Law Council of Australia (LCA) who both provided industry perspectives on the importance of the meeting.

Ian Gilbert confirmed that the banks fully support a NECS which would provide valued microeconomic reform. He emphasised that a pre‐condition for success was the co‐operation of jurisdictions and the private sector in the realisation of a single national system capable of servicing stakeholder needs in all jurisdictions. He made it clear that NECS is much more than a computer system, that the business practices supporting it are equally important and that the banks need a fully consultative process for its development otherwise their business case for participation will fail.

John Corcoran confirmed that lawyers want a system that can operate in all jurisdictions; integrates with the technology in legal practices; suits all firms, large and small; is efficient reliable and robust; and is fair in its distribution of risk. He advised the meeting that, from the perspective of the legal profession, a federation of separate jurisdiction systems is unacceptable and the system must be a
single, national, multi‐jurisdiction system supported by all major stakeholders. He also emphasised the importance of adequate funding for the work of establishing NECS.

Simon Libbis, Executive Director of the National Office, presented the background to the meeting, including the unanimous decision at the last National Steering Committee to establish the NPT and to hold an open meeting of stakeholders to reach a consensus on arrangements. He emphasised that the Steering Committee intended that the team work within the context of the agreed National Business Model and he presented a number of suggested arrangements as a basis for the meeting’s discussion. He advised that the arrangements agreed upon would be presented to the Steering Committee for confirmation before any substantive work got underway.

Under the chairmanship of Richard Glenn, the Australian Government representative on the National Steering Committee, the meeting reached consensus on the following outcomes -

1. The NPT is to be responsible to the National Steering Committee but work through the National Office in providing its advice.
2. The NPT is to consist of eight permanent and up to six casual members.
3. The permanent members are to be:
• 1 representative of banks nominated by the ABA
• 1 representative of legal practitioners nominated by the LCA
• 1 representative of licensed conveyancers nominated by the AIC
• 1 representative of land registries nominated by the jurisdictions
• 1 representative of non‐bank lenders nominated by the MFAA
• 1 representative of independent mortgage processors nominated by NECO
• 1 representative of information brokers nominated by IBLSA
• 1 representative of revenue offices nominated by the Revenue Commissioners
4. The casual members are to be appointed as required by the National Steering Committee to provide additional stakeholder representation or specialist advice.
5. Current members of the National Steering Committee are to be ineligible for NPT membership so as to avoid any conflict in the governance of the team’s arrangements.
6. The team is to meet face‐to‐face every six weeks, or as the need arises, with video conferencing if necessary and available, and in between times exchange views by email and teleconferences. Meeting locations are to best suit team members. The National Office is to provide a non‐voting chair for meetings and record determinations. Team members are to meet their own costs of attending meetings and the National Office is to meet the cost of arranging and holding meetings.
7. Team members are to be encouraged to tap into the resources of their respective organisations, profession and stakeholder group for assistance and guidance, and are to be able to provide third‐party advice for team consideration provided it is of good standing and supported.
8. The team is to consider issue papers prepared by the National Office and make determinations that advance the development of NECS within the context of the National Business Model. The team’s determinations are to be based on a simple majority consensus and adopted automatically into the National Roadmap when consistent with it. Contentious determinations are to be referred by the National Office to the National Steering Committee for resolution.
9. All determinations are to be referred to the National Steering Committee for confirmation or resolution.
10. All issue papers considered and all determinations made are to be published on the NECS website for unrestricted access.
11. The team’s initial priorities are to be in order of immediate importance:
• System functions and features
• System performance characteristics
• Supporting business practices
• Risk management regime (including a compensation fund)
• Legislative framework
• Implementation planning (including take‐up initiatives and transition arrangements).