Wilkinson Kate: Civil Aviation (Cape Town Convention and Other Matters) Amendment Bill — First Reading Second Reading In Committee Third Reading 
Text is incorporated into the Bound Volume 
Wilkinson Kate: Civil Aviation (Cape Town Convention and Other Matters) Amendment Bill — First Reading Second Reading In Committee Third Reading 
[Sitting date: 22 June 2010. Volume:664;Page:12018. Text is incorporated into the Bound Volume.] 
Hon KATE WILKINSON (Minister of Labour) 
 on behalf of the  
Minister of Transport 
: I move  
That the Civil Aviation (Cape Town Convention and Other Matters) Amendment Bill be now read a second time 
. I understand that Supplementary Order Paper 145 which makes technical amendments to the bill has been lodged following consultation between officials and aviation finance and legal stakeholders. This bill’s amendments simplify or clarify the relationship between the Convention on International Interests in Mobile Equipment the Protocol to the Convention on International Interests in Mobile Equipment and domestic legislation. The rule-making provisions are also clarified. In the first reading debate the Minister advised that accession to the Cape Town Convention and the Aircraft Protocol would bring economic benefits to our aviation industry. Clauses 12 to 14 of the bill come into force on a date to be appointed by the Governor-General by Order in Council and will implement the Cape Town Convention and the Aircraft Protocol when New Zealand’s accession comes into force. It is proposed that that date be 1 October 2010. The rest of the clauses come into force on 1 August 2010 and will implement changes to streamline the civil aviation rule-making process. 
Turning to the provisions of the bill clause 4 amends section 2 which relates to interpretation. The amendment reflects the new section 34A inserted by clause 8 and adds the Governor-General as someone who may make civil aviation rules. Clauses 5 to 11 amend the rule-making parts of the Act including clarifying powers of the Minister to make ordinary rules matters to take into account when making rules and revoking of prescriptive procedural requirements. In addition the Governor-General will be able to make ordinary rules. 
We now come to the parts of the bill that when enacted will enable New Zealand to conform with the provisions of the Cape Town Convention and the Aircraft Protocol. Clause 12 inserts new Part 12 which implements the Cape Town Convention and the Aircraft Protocol. Members should note the principal proposed amendments in this part of the bill. The amendment gives the convention and the protocol legal status in New Zealand and ensures they will prevail over inconsistent New Zealand law. It also clarifies that law that is consistent with but additional to the convention and protocol still has effect. The amendment enables the Governor-General to issue copies of any declarations made by New Zealand. Contracting States are to exclude or modify provisions considered to be incompatible with their legal culture or tradition. The amendment also adds circumstances in which the removal of an aircraft from the New Zealand aircraft register can occur. Under the protocol a creditor can require the deregistration and export of an aircraft in the event of a default. 
Clause 13 via schedule 1 adds a new schedule 7 which sets out the text of the Cape Town Convention and new schedule 8 sets out the text of the Aircraft Protocol. In Part 2 of the bill clause 14 via schedule 2 sets out consequential amendments to other enactments. The key area here is the Personal Property Securities Act 1999. The security interests in aircraft objects covered by the Cape Town Convention and the Aircraft Protocol are one form of security interest in personal property. Therefore there will be situations where both regimes will apply to the same security interest. To avoid the potential for conflict from the existence of two registries the bill amends the Personal Property Securities Act so that it is clear that in relation to aircraft objects the Cape Town Convention and the Aircraft Protocol will have primacy. The effect of that will be that the parties to a transaction will determine for themselves whether they will use the international register the Personal Property Securities Act or both. Finally clause 15 relates to transitional provisions for material incorporated into rules via reference. 
In conclusion it is necessary to pass this bill to enable the aviation industry to access the financial advantages of the Cape Town Convention and the Aircraft Protocol and to streamline the aviation rule-making process so that our rules do not lag behind developments in the aviation sector. I commend this bill to the House.