NSC Meeting 11: Melbourne -15 May 2009 –
Key outcomes:
• The Steering Committee commended the progress made by the National Office in developing the requirements of NECS and endorsed continuation of the forward work program. Funding for National Office activities was confirmed until at least the end of 2009.
• The meeting agreed that the Chairman should send a letter to the Prime Minister, Kevin Rudd, advising of industry concerns that without a firm commitment regarding funding it would be difficult to maintain their commitment.
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Key outcomes:
• COAG Support – The NSC discussed the recent decision of the Council of Australian Governments (COAG) to place electronic conveyancing on its agenda. The Committee noted that COAG had moved quickly through its Business Regulation and Competition Working Group (BRCWG) to organise an E-Conveyancing Sub-Committee to assist in the implementation of e-conveyancing nationally.
It was noted that COAG had advised its intention to set up a new national electronic conveyancing entity. It was further noted that, at a recent meeting of the jurisdictions, the COAG E-Conveyancing Sub-Committee Chair, Rod Bogaards, had emphasised that the current work of the NSC and the National Office would add value to this entity and should be continued. To this end, the NSC endorsed the National Office’s Forward Work Program, including the continued development of the NECS Requirements Definition (NRD) and uniform supporting business practices in all jurisdictions.
• Transfer of Victorian Electronic Conveyancing (ECV) System – The meeting agreed it was no longer a relevant issue for the NSC in light of COAG’s decision that evaluation of ECV for use in NECS would be up to the new entity to determine.
• Issues Register – The NSC resolved to publish an Issues Register on the NECS website. The Register will record key issues raised by stakeholder groups and explain how these issues are being addressed by the National Office.
• National Project Team – The NSC resolved to include representation of professional indemnity insurers and fidelity fund operators on the National Project Team.
Key outcomes:
• COAG and SCAG Decisions – The NSC noted that electronic conveyancing has been placed on the Council of Australian Governments’ (COAG) agenda and referred to its Business Regulation and Competition Working Group. It was further noted that the Standing Committee of Attorneys-General (SCAG) endorsed this approach and offered to provide assistance with harmonisation of jurisdiction legislation requirements. The NSC welcomed these decisions as positive steps towards a single national electronic conveyancing system for Australia.
• Victorian Electronic Conveyancing (ECV) System – The NSC received a report on the jurisdictions’ progress on setting up NECS Ltd to enable purchase of the ECV from Victoria. The State and Territory jurisdiction members have since held meetings but have not progressed the issue further.
• National Project Team – The NSC confirmed arrangements for the National Project Team (NPT), including its make-up, charter and work program. The NPT was defined as a working group of the NSC that makes recommendations on NECS business requirements, supporting arrangements and implementation issues. The Committee had previously unanimously endorsed the establishment of the NPT as the preferred means of integrating industry and government requirements into NECS.
• Licensed Service Providers (LSPs) – The NSC received a presentation from the Information Brokers and Law Stationers Association (IBLSA) on the role of LSPs and the importance of a commercial approach to ensuring rapid take-up of NECS. The NSC noted the concerns expressed and requested the National Office to continue liaising with IBLSA on implementation planning issues.
• Additional Risk Advice – The NSC received Additional Risk Advice from Clayton Utz on the relationship between NECS Ltd and each State and Territory. The advice confirmed that, with appropriate arrangements in place, there need not be any additional liability for participating governments from the operation of NECS. The additional advice should be read in conjunction with the full NECS Risk Assessment commissioned by the National Office on behalf of the NSC.
• Updated Funding Model – The NSC received an update on the NECS Funding Model (NFM), taking into consideration better estimates of market potential, recent decisions of the Committee and jurisdictions on transaction fees and a slower take-up rate. The NSC resolved that the NFM continue to be treated as commercial-in-confidence.
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Key outcomes:
• Victorian Electronic Conveyancing (ECV) System – The meeting discussed progressing the offer made by Victoria earlier in the year to sell its ECV system, including all documentation and intellectual property rights, to the jurisdictions as a group for an agreed amount.
• Federal Government Membership – In view of the national significance of NECS, the Federal Government sought membership on the NSC and the Committee agreed, welcoming Richard Glenn as its representative. The Chairman noted that the benefits of Federal Government membership include:
o recognising the national nature of NECS and its importance to the Australian economy
o strengthening and re-enforcing the NSC’s national focus among industry stakeholders
o adding another option to the way in which the legal framework for NECS is implemented
o providing an entry point into Federal Government agencies
o providing access to Federal Government experience with other similar projects.
The Committee also noted that NECS complements the Federal Government’s commitment to red tape reduction, harmonisation of regulation and national solutions to national problems.
• National Project Team – The NSC endorsed a proposal to establish a National Project Team to actively involve industry representatives in the National Office’s Forward Work Program. The Committee resolved that a Stakeholder Working Group be convened in the New Year with the purpose of developing the structure and arrangements for a National Project Team.
Key outcomes:
• National Business Model – The NSC Chairman reported that the jurisdictions had reconfirmed their view that there was no support for a federated model or any other model, other than the NECS National Business Model. The meeting re-confirmed the National Business Model as the basis for national electronic conveyancing.
• Victorian Electronic Conveyancing (ECV) System – The NSC Chairman advised the Committee that a meeting of jurisdiction members had been held the previous day. At that meeting, Neil Lawson presented a report on Queensland’s evaluation of the ECV. The report concluded that the ECV could be easily modified to meet foreseeable requirements of the jurisdictions and NECS. Victoria agreed to make the ECV available for use as a basis to develop the detailed requirements for a national system.
• NECS Ltd – The NSC directed the National Office to expedite the establishment of NECS Ltd, an incorporated entity owned by the jurisdiction governments.
• National Electronic Conveyancing Data Standards (NECDS) – The National Office Executive Director reported on the NECS/LIXI Agreement and the first meeting of the NECDS Management Group. The NSC directed the National Office to expedite the development of NECDS through LIXI.
• Stakeholder Consultation – The National Office Executive Director reported on presentations to various stakeholder groups and the latest State Project Team Meeting. Industry members of the NSC expressed their support for the national approach and noted the vital importance of key stakeholder involvement to the success of NECS.
• NECS Requirements Definition – The National Office Executive Director reported on the release of the NECS Requirements Definition. It was noted that the National Roadmap would need to be revised to accommodate the use of the ECV in finalising the NECS Requirements Definition.
• Forward Work Program – The National Office Executive Director reported on the Forward Work Program which included National Infrastructure Development and tenders for the NECS Implementation Plan and the NECS Solutions Architecture.
Key outcomes:
• National Business Model: The Chairman advised the Committee that a meeting of the jurisdictions had been held to ascertain their commitment to the NECS National Business Model. The Chairman noted that the term National Business Model refers specifically to the model published by the National Office as part of the NECS National Roadmap. It does not refer to any other arrangements, including one resulting in eight separate systems whether in a federated model or otherwise.
The Chairman advised that each jurisdiction present at the meeting – South Australia, New South Wales, Northern Territory, Queensland, Tasmania, Victoria and Western Australia – confirmed they were committed to the national electronic conveyancing system as described in the NECS National Business Model.
The NSC thus endorsed the NECS National Business Model as the basis for national electronic conveyancing and resolved that work to implement the model as quickly as possible.
• National Roadmap: The NSC endorsed that NECS National Roadmap as the basis for defining and implementing NECS. It further resolved that the Roadmap documents be updated and re-published to reflect the findings of the Independent Expert Advice and the National Consultation Program.
• Victorian Electronic Conveyancing (ECV) System – As a result of the invitation by Victoria at the last NSC meeting, jurisdiction working group meetings had been held to assess the Victorian system in light of the ECV Alignment Review. The NSC was advised that:
o each jurisdiction had presented scenarios that the ECV would need to handle in a multi-jurisdiction environment and received assurances from Victoria that it could
o the jurisdictions had agreed that the way forward was to continue to develop the requirements for the NECS National Business Model and, at the appropriate time, consider the ECV as a potential supplier for provisioning NECS.
Queensland advised the NSC it was further testing the ECV to see whether it could be modified for its specific requirements and would provide a report on its findings to the National Office.
However, the NSC decided it was no longer appropriate to pursue an agreement with Victoria to transition the ECV into NECS. This position was reached when Victoria advised that such an agreement would not be possible until there was a suitable NECS entity in place with adequate funding and Victoria’s due diligence processes had been satisfied.
• Independent Expert Advice – The NSC was advised that the independent consultancy reports on risk assessment, regulatory review and governance were well received by the Stakeholder Working Group meeting held on 2 March 2007. It was agreed the findings would provide guidance in further developing NECS requirements and supporting arrangements.
• Stakeholder Consultation – The National Office Executive Director reported on presentations to various stakeholder groups and the completion of the National Consultation Progress Report.
• National Electronic Conveyancing Data Standards (NECDS)– The National Office Executive Director reported on progress towards an agreement with LIXI to develop NECDS.
• National Funding Model (NFM) – The NSC discussed the proposed NFM which canvases the possible capital requirements for NECS during its first 10 years. It was resolved that assumptions underlying the proposed model be reviewed as further information becomes available. It was further resolved that the NFM continue to be discussed and refined prior to publication.
• Implementation Plan – The National Office Executive Director recommended that the next step in developing the National Business Model was to prepare a comprehensive and detailed implementation plan for NECS. This recommendation was accepted by the Committee and it was resolved that the National Office move forward with this task.
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• ECV Alignment Review: The NSC was presented with the findings of the independent ECV Alignment Review, which had been commissioned as a result of the previous Committee meeting. The key findings were:
o Settlement Functionality: Detailed functional and non-functional specifications of ECV with respect to settlement could be substantially re-used to meet the NECS requirements.
o Lodgment Functionality: ECV had been specifically designed for Victorian requirements and the underlying architecture was inadequate to satisfactorily meet the requirements of NECS for a national multi-jurisdictional system.
Victoria disagreed with these findings and invited all the jurisdictions to visit Land Victoria with appropriate technical staff to test their own data in the Victorian system and make their own assessment as to its value. It was resolved that these meetings be coordinated by the National Office. It was further decided that the National Office should set up a Stakeholder Working Group to view the ECV system.
The NSC endorsed the pursuit of an agreement with Victoria on how the ECV could transition into NECS. All jurisdictions committed to engaging their respective governments in the process of moving towards a national system of electronic conveyancing.
• National Consultation Program – The NSC received a further report on the National Consultation Program.
• Independent Expert Advice – The NSC received a further report on the progress of the independent consultancies on NECS risk, regulatory and ongoing governance arrangements.
Key outcomes:
• Victorian Electronic Conveyancing (ECV) System – The Committee congratulated Victoria on its launch of the ECV pilot for financial institutions in that State. The NSC decided to commission an independent strategic review of the ECV to see whether it could be adapted for NECS. It was also decided that a National Office representative should be included in an advisory capacity on the ECV’s control board.
• Independent Expert Advice – The NSC received a progress report on the work of the independent consultancies on NECS risk, regulatory and ongoing governance arrangements.
• NECS Operations Description – The NSC received a report on State Project Team discussions on the NECS Operations Description Notes for National Uniformity.
• National Consultation Program – The NSC received a report on the National Consultation Program.
• Federal Government Observer – At the suggestion of Federal Attorney-General the Hon Phillip Ruddock MP, the NSC resolved to invite a Federal Government representative to observe future NSC meetings. This move initiates Federal Government engagement in what has been to date a solely State and Territory initiative.
Key outcomes:
• NECS Operation Description – The NSC endorsed the draft NECS Operations Description.
• National Electronic Conveyancing Data Standards (NECDS) – The NSC endorsed the move towards developing NECDS.
• Other – The NSC also discussed:
o work towards the commercial principles of NECS
o progress towards establishing an online forum to discuss key aspects of the proposed NECS National Business Model
o the work of the States and Territories
o revisions to the NECS National Business Model to bring it up to date with developments in conveyancing since the model was published.
Key outcomes:
• Stakeholder Consultation: The NSC endorsed a National Consultation Program to be conducted by the National Office, involving:
o introductory visits to each jurisdiction
o the establishment of an online forum to discuss key aspects of the proposed NECS National Business Model
o the establishment of State and Territory project teams to advise the National Office on jurisdiction-specific requirements, conduct local stakeholder engagement and develop individual readiness plans.
• Independent Expert Advice: The NSC endorsed briefs for the engagement of independent consultants to:
o conduct a risk assessment of NECS
o conduct a regulatory review of NECS
o develop ongoing governance arrangements for NECS Ltd
o conduct an assessment of the Victorian electronic conveyancing (ECV) pilot to assess suitability for provisioning NECS.
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Key outcomes:
• All members confirmed their commitment to a national approach to electronic conveyancing
• National Office Executive Director, Simon Libbis, presented the Office’s Forward Work Program
• It was agreed that the key decisions to be made by the NSC during 2006 would include:
o confirming the NECS National Business Model and functionality
o allocating risk and managing liabilities, including operational governance of NECS
o identifying commercial parameters for the establishment and sustainable operation of NECS
o undertaking NECS implementation viability and planning.
• The Committee agreed to meet early in 2006 to finalise the Committee’s structure and endorse a rigorous Forward Work Program for the National Office.
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