Thank you, Chairperson, the Convention on International Interests in Mobile Equipment Bill was adopted - and it happened here in Cape Town - in 2001 and it was signed at the time by some 53 states including, obviously, South Africa. The Cape Town Convention, as it has now become known for short, seeks to provide much greater clarity around legal and ownership rights in regard to mobile equipment like aircraft engines, aircraft frames and helicopters. This is, needless to say, very expensive equipment and, by definition, it is easily moved around the world. Given the expense of the equipment, parties using it typically enter into arrangements with financial institutions for the purchase and or lease of this equipment.
Because of its mobility and because there is a vast range of different local national legislation, financial institutions have often been very reluctant to provide finance where they charge very significant premiums to cover their risks. And this applies particularly to developing countries, especially those in Africa. The convention seeks to establish an international register of such equipment and uniform protocols for dealing with problems like a default on payment. This is applicable in all states that have signed, ratified and or acceded to the convention. We believe that the convention will greatly assist developing countries, in particular, more easily to access finance for the purchase and or lease of this kind of aircraft mobile equipment.
The Bill that we have in front of us in the House today gives legal effect to the provisions of the convention and protocol here within South Africa; it determines which courts in South Africa will have the relevant jurisdiction, and the Bill designates the SA Civil Aviation Authority as the entry point through which information required for the registration of this equipment may be transmitted to the international register.
There are no financial implications for our state as the convention and protocol are basically private law instruments.
Hon members, again the level of noise is going up. Continuously, presiding officers have to bring it to our attention that we should preserve the dignity and the decorum of the House so that we can hear people who are debating all the issues that they are raising. Thank you very much.
Thank you, Chair. This is a very scintillating piece of legislation, so I'm surprised by the people, and I'm trying to Bolshevirise it, so, hush!
In the course of 2006, the Transport Portfolio Committee received a very full report on the convention and the present Bill was tabled before us, as a committee, in the course of this first parliamentary session of 2007. Having finalised our consideration and being unanimous as a committee on its desirability, the committee recommends to the House that we pass the Convention on International Interests in Mobile Equipment Bill. Thank you. [Applause.]
There was no debate.
Bill read a second time.