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Justice Minister Simon Power has accepted the resignations of four members of the board of the Legal Services Agency as he moves to implement some of the recommendations of Dame Margaret Bazley's damning review of legal aid.
Dame Margaret's inquiry found corrupt lawyers were swinlding taxpayers of tens of millions of dollars.
Power also says Cabinet has agreed that he start work preparing documents for Cabinet to fold the Legal Services Agency (LSA) into the Ministry of Justice and appoint an independent statutory officer.
Also, a further review of the quality of legal services provided by legal aid lawyers and the disciplining of poorly performing lawyers will be made in two years' time instead of three as recommended by Dame Margaret.
Power says the LSA board will be cut from six members to four, after Dame Margaret identified serious shortcomings in the delivery and monitoring of legal aid.
"Cabinet agreed I should start work immediately so Cabinet can consider folding the LSA into the ministry and appointing an independent statutory officer to oversee the granting of legal aid and the running of cases by the Public Defence Service.
The Minister says the government is particularly concerned by what Dame Margaret described as the threat to the viability of the legal aid system brought about by the system's governance.
"Her finding that the LSA appeared to have been 'paralysed by difficult relationships and the assertion of control over the legal aid system by the legal profession' means we must move quickly.
"It's essential for taxpayers, and for those in the legal aid system, including the LSA, that we remove any uncertainty about the continued delivery of legal aid."
Retired High Court judge Sir John Hansen will be the new board chairman. The other new appointee will be Wellington company director John Spencer. They will join existing board members Jane Huria and Ross Tanner, who were appointed in September.
"I'm confident these people have the skills and experience to provide the governance the LSA will need during a period of substantial change," says Power."
The current Chair, Carol Durbin, and board members Jane Taylor, Alister James and Dr Pare Keiha have resigned, effective Monday. Mr Power acknowledged their service to the board.
Power says the decision to hold a further review of legal services, including legal aid services, in two years' time instead of three, as recommended by Dame Margaret, was made because it was important to rectify the issues identified by the review as soon as possible.
"Dame Margaret said many of the problems over the quality and behaviour of legal aid lawyers stemmed from issues with the relationship between the LSA and the Law Society, and with the Law Society's regulatory role, so we have to fix that.
"Today's announcements are the first of many steps the Government will be taking to rectify an unacceptable situation."
