§ Mr. Dewar
To ask the Secretary of State for Trade and Industry (1) what responses have been received to consultation following the publication of the Diamond report, "A Review of Security Interests in Property"; and when the Government expect to be able to make a statement about reform of the law in this area;
(2) if, now that the Diamond report, "A Review of Security Interests in Property", has been published and the 461W consultation period is ended he will ask the Scottish Law Commission to resume its work on floating charges and include any appropriate recommendations that arise from their consultative memorandum No. 72, "Floating Charges and Receivers", published in October 1986;
(3) what steps he intends to take to remove the present prohibition in the law of Scotland on taking security over moveable property without possession; and what representations he has had on this subject.
§ Mr. Redwood
A significant number of responses have been received to the proposals outlined in part II of Professor Diamond's report, "A Review of Security Interests in Property" published by HMSO in January. Professor Diamond recommends radical reform in a complex area of the law which will need careful consideration. The Government will make public their conclusions, in the light of the responses received, in due course.
Professor Diamond's report pays particular attention to the restrictions of current Scots security law and a number of respondees commented on this aspect. It will be given due weight in the Government's consideration of what action should be taken in response to the report.
The question whether the Scottish Law Commission decides to resume its work on floating charges and receivers will to some extent depend upon the conclusions the Government reach on Professor Diamond's report. The work was not suspended at the request of the Government.