Mahsi, Mr. Chairman. I’m pleased to speak today about Bill 3, International Interest in Mobile Aircraft Equipment Act. The purpose of this bill is to provide for the adoption in the Northwest Territories of the Convention on International Interest in Mobile Equipment and protocol matters specific to aircraft equipment.

The convention is designed to facilitate financing for the purchasing or leasing of high value mobile equipment, something that is particularly important at this time. Because such equipment moves from country to country, creditors face higher than normal risk that increase the cost of obtaining credit.

The convention contains core provisions that are meant to be supplemented by protocols appropriate to specific industries, the first of which relates to aircraft. Together the convention aircraft protocol provides for the establishment of an international registry for securing interest in long-term leases in aircraft and airplane engines. The registry in Dublin, Ireland, will generally apply in the Northwest Territories in place of the personal property registry under the Personal Properties Securities Act.

It is important to note that Canadian representatives play a major role in the devolvement of the convention protocol, so it is no surprise that the convention protocol and registry operate on most of the same principles as our Personal Properties Security Act. Canada has both creditors and borrowers in the aircraft industry. The convention protocol would benefit both by increasing the availability of lower cost credit. Lower financing costs for the aviation industry would ultimately benefit the general public.

The aircraft protocol applies to planes that carry eight or more persons and to helicopters transporting five or more persons, including used aircraft. As such, even smaller NWT operators wishing to buy, lease, or sell internationally may have better access to credit and protection of their interests.

The convention protocol can only be ratified by Canada once a majority of the provinces and territories have passed implemental legislation. To date, the federal Parliament and six provinces have enacted implemental legislation. The model act upon which the bill is based was the product of ongoing stakeholder consultation led by Transport Canada. The Canadian aviation industry supports Canada’s ratification of the convention protocol.

I would like to thank the Standing Committee on Social Programs for its review of Bill 3 and will be pleased to answer any questions that committee members may have regarding the bill.