1 Sep 2009

Legal aid review could see spending capped

10:12 pm on 1 September 2009

The legal aid budget could be capped to help contain rising costs.

That is one of the possibilities identified in a Government discussion document released on Tuesday as part of a major review of the legal aid system.

The review was chaired by Dame Margaret Bazley and outlines pressures on the system, including a big increase in demand and the rising number of high cost cases.

Last year the Government spent more than $120 million on legal aid, as demand rose 23% between 2003 and 2008.

About 1.2 million people are eligible for legal aid, with 45% of the money going on 5% of the cases.

Justice Minister Simon Power says legal aid faces real challenges in terms of public demand, quality and cost.

The discussion document floats the idea of a cap on spending on either all, or parts of the legal aid budget. However, it notes that a cap would not address the drivers of increased demand and would leave some people unable to access legal aid.

The paper suggests bulk-funding lawyers to deliver an agreed number of services at a set price and says that could reduce administration costs and encourage specialisation.

It also highlights the variable quality of legal aid. It says low pay rates have seen experienced, quality lawyers opt out of the system.

Mr Power says capping the legal aid budget would be a "big call," but he wants public feedback on the idea.

The minister says access to justice is a cornerstone principle and reforming legal aid is just a part of the Government's work to make the courts more user-friendly.

He says his primary objective is access to justice, but says the Government must consider whether it can maintain the current level of funding that is pouring into legal aid.

Mr Power says nothing in the discussion document is ruled in or out at this stage. Other options include an expanded Public Defenders Service.

The Labour Party says the Government is right to look at the increasing cost of legal aid but believes there are risks to a budget cap, as it could lead to people missing out on justice.

Labour says bulk-funding some lawyers to provide an agreed number of services at a set price is a more attractive option and could cut administration costs.

Submissions close in early October.

Rates of pay an issue - Law Society

Law Society president John Marshall says successive governments have failed to address the rates of pay for legal aid work.

The discussion document released on Tuesday says there are too many lawyers who are not doing a good enough job and it is becoming harder to attract and retain experienced people.

Mr Marshall told Checkpoint legal aid rates of pay have increased 8% in the past 13 years.

He says the result is that many experienced lawyers are no longer prepared to do legal aid work because it is simply uneconomic.