5. CHESTER BORROWS (National—Whanganui) Link to this
to the Minister of Justice
What has caused the $402 million legal aid funding gap?
Hon SIMON POWER (Minister of Justice) Link to this
Two-thirds of the $402 million gap, which will emerge over 5 years from 2010-11, stems from decisions made in 2006 to extend eligibility for legal aid and in 2008 to increase lawyer remuneration. To be blunt, those changes were completely unaffordable and unsustainable then, and they are even more so now.
Among other measures, we are changing legal aid eligibility, purchasing approaches, revenue collection, and court-ordered lawyer for the child services. I want to make it absolutely clear that none of these changes will affect cases involving vulnerable parties, the care and protection of children, or serious criminal matters. The changes will be implemented in 2011-12 and are expected to reduce legal aid expenditure by $138 million over 4 years. The changes are necessary to bring the legal aid growth curve back under control, while preserving access to justice for those who need it the most.