Allan KiritapuLEGAL SERVICES AMENDMENT BILLFirst ReadingHon KIRITAPU ALLAN (Minister of Justice): I present a legislative statement on the Legal Services Amendment Bill. SPEAKER: That legislative statement is published under the authority of the House and can be found on the Parliament website. Hon KIRITAPU ALLAN: I move That the Legal Services Amendment Bill be now read a first time. I nominate the Justice Committee to consider the bill. For our justice system to function as intended people need to be able to access justice but for some people the costs that come with getting legal advice and having legal representation prevents them from being able to participate. The legal aid system is designed to help those on lower incomes to ensure that they are not disadvantaged by being unable to afford legal representation but we know that aspects of legal aid mean it is out of reach for some New Zealanders. The Government is committed to improving access to justice. This bill honours that commitment by removing the additional costs of accessing legal aid the user charge and interest payments which we know can be an absolute barrier to accessing legal aid. Firstly I'd like to discuss the user charge. Currently some people who successfully apply for civil legal aid are charged a $50 fee also known as a user charge. Fifty dollars is more than double the minimum wage meaning it would take someone working at the minimum wage at least two hours just to pay this initial charge. For some the $50 user charge may mean they have to decide between groceries that week and getting assistance with their legal issue. The bill removes the requirement to pay the user charge from the Legal Services Act. It is a charge that is simple to remove but that will make a big difference for legal aid applicants. Next I would like to address the issue about the payment of interest on unpaid legal aid debt. Currently if you have legal aid debt that is unpaid six months after your case closes you are charged an interest rate of 5 percent per annum. For some families—particularly those who owe multiple debts—5 percent interest on legal aid debt has served to penalise them for not being able to afford to repay their legal aid debt properly. This bill removes the requirement to pay interest on unpaid legal aid debt. Not only will this provide stress relief to those who are facing it but it will save people from paying more money than necessary to get support that is often absolutely necessary for fair participation in the justice system. I want to point out that the removal of the user charge and interest payments will already be in effect before this bill passes. Amendments to the Legal Services Regulations make the practical changes by making the user charge zero and the interest rate zero. What this bill does is remove references to the user charge and interest payments from the Legal Services Act—references that will already be redundant after 1 January 2023 once the regulations are changed. The changes in the bill make the abolishment of the user charge and interest rate a more enduring change giving certainty to legal aid recipients that they will not be required to pay those debts when they are granted legal aid. The justice system can be a stressful place for people who are not familiar with it and financial barriers and the stresses that come with that can make the experience much more overwhelming than it already is for many New Zealanders. I know there is more to be done to improve access to legal aid but I also know that the changes this bill is making right now will make a real tangible difference to lower-income New Zealanders using legal aid to access justice which is why I am incredibly proud to be commending this bill to the House today. With that I commend this bill to the House. SPEAKER: The question is that the motion be agreed to.