U.S. Chamber of Commerce


Tami Overby

Senior Vice President, Asia

International Affairs

1615 H Street, N.W.

Washington, D.C. 20062-2000

Phone: (202) 463 5519

Fax: (202) 822-2491

September 26, 2018

Sent via e-mail

Mr. Bruce Whittaker

PPSA Review Secretariat

Commercial and Administrative Law Branch

Attorney-General’s Department

3–5 National Circuit

BARTON ACT 2600

Australia

Re:Review of the Personal Property Securities Act

Dear Mr. Whittaker:

I understand that you have been appointed by the Attorney-General of Australia, Senator the Hon. George Brandis QC, to conduct a review of the Personal Property Securities Act 2009 (the “PPSA”).On behalf of the U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses of all sizes, sectors, and regions, I urge you to consider the highly damaging effects of Section 13 of the PPSA, which is being used improperlyby some entities to make illegitimate claims against property owned by American companies and leased to individuals and businesses within Australia.

Under the PPSA, these entities are recording security interests in the leased property, then using this purported security interest in anattempt to extinguish the rights of the legitimate property owner.This practice undermines Australia’s reputation of offering investors a safe and reliable commercial environment under the rule of law. It may potentially lead American companies to reassess their investments in the country.

This is not a theoretical concern for American companies. One of our member companies is currently embroiled in lengthy and costly proceedings for the return of its explicitly leased property. We are concerned that additional U.S. companies may suffer the unintended adverse consequences of the application of Section 13 of the PPSA.

American companies have invested more than $130 billion in Australia, accounting for nearly one-quarter of all foreign direct investment and outpacing investors from any other country. From telecommunications, utilities, financial services, and construction to providers of cultural and recreational services, American companies provide Australians with a broad range of services that improve their quality of life and standard of living and also contribute substantially to the growth of the Australian economy.In order to continue fostering a healthy and mutually-beneficial commercial relationship between the countries, it is important that the Australian government confirm that the PPSA may not be used to deprive American companies of valuable property they have leased to Australian businesses and individuals.

In preparing your final report to the Attorney General regarding the implementation of the PPSA, I urge you to consider recommending measures that reaffirm Australia’s commitment to protecting the property interests of foreign lessors who are conducting business in Australia.

Thank you for considering this important matter.

Sincerely,

Tami Overby