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A damning review of legal aid says a sea change is needed to fix a system undermined by incompetent and unscrupulous lawyers looking after their own interests.
The Legal Aid Review report released on Friday morning recommends the Legal Services Agency (LSA), which administers the aid, lose its independent status and be folded into the Justice Ministry. Click here for a copy of the report (pdf).
It says administrative costs are out of control and raises serious concerns about how the agency operates as well as with the impact bad lawyers have.
Dame Margaret Bazley headed the review and pulls no punches in the report.
"There is a small but significant group of lawyers, and some defendants, who are abusing the system to the detriment of clients, the legal aid system, the courts and the taxpayer," she says.
"While there are very good lawyers in the legal aid system, there is also a small but significant proportion of very bad lawyers who are bringing themselves and their profession into disrepute."
The situation cannot not be allowed to continue, she says.
"The damage that incompetent and unscrupulous lawyers can inflict on their unsuspecting clients - and the potential to destabilise the court system, with resulting wasted expenditure of public money - is simply too great."
Other problems identified in report include an operation focus from the agency, poor relationships between it and the New Zealand Law Society, a reluctance by the agency to exercise its powers, particularly in relation to lawyers and issues with the governing legislation.
Other issues Dame Margaret has identified are over-reliance on complaints as an indicator of lawyers who are failing to perform.
She also points to lawyers who "appear to be acting corruptly", and says some of the poor practices include lawyers "gaming" the system by delaying pleas to maximise legal aid payments, demanding "top-up" payments from clients and being ill-prepared for cases.
She says these issues are as causing "system-wide" failings and a system that is open to abuse.
Minister vows to act
Justice Minister Simon Power says he is deeply concerned by the findings of Dame Margaret's review and the government will act quickly on its recommendations.
Power initiated the review in April and the report follows the release of a public discussion document in September.
"When someone as experienced in providing services to the public as Dame Margaret talks about system-wide failings, a system open to abuse, and appalling behaviour, we know we have a problem," says Power.
"What she has identified goes to the very centre of the
integrity of our legal system. Things must change, and fast."
Power says he is particularly concerned by her comments on the
operation of the Legal Services Agency and at the way some lawyers
are taking advantage of the system.
"I realise this report will create uncertainty for many in the legal aid system, and particularly for those in the LSA.
"I can assure those people, as well as taxpayers, that the government will move very quickly to remove this uncertainty."
Power says he will be raising some of the recommendations in Cabinet on Monday "to ensure we maintain certainty around the delivery of legal aid."
"We will act on the remainder of the recommendations early in the new year."
Click here for Dame Margaret's report, Transforming the legal aid system .
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