Collins Judith: Prisoners’ and Victims’ Claims (Continuation and Reform) Amendment Bill — First Reading 
Text is incorporated into the Bound Volume 
Collins Judith: Prisoners’ and Victims’ Claims (Continuation and Reform) Amendment Bill — First Reading 
[Sitting date: 11 December 2012. Volume:686;Page:7368. Text is incorporated into the Bound Volume.] 
Hon JUDITH COLLINS (Minister of Justice) 
: 
 I move  
That the Prisoners’ and Victims’ Claims (Continuation and Reform) Amendment Bill be now read a first time. 
 I nominate the Justice and Electoral Committee to consider the bill. At the appropriate time I intend to move that the select committee reports back to the House on Monday 15 April 2013. The Prisoners’ and Victims’ Claims (Continuation and Reform) Amendment Bill makes three major changes to the Prisoners’ and Victims’ Claims Act 2005. It repeals the sunset clause in that Act to make it permanent it suspends the civil limitation period for victims’ claims while money is being held by the Ministry of Justice and it clarifies for the avoidance of doubt the application of the Act to unlawful detention claims. 
The Prisoners’ and Victims’ Claims Act 2005 was passed by the previous Labour Government and has two main objectives: to ensure that financial compensation is treated as a remedy of last resort for prisoners whose human rights have been breached and to recognise that victims should have the first claim against any such compensation awarded to prisoners. The Act provides clear statutory guidelines for the rare circumstances in which courts can award compensation for a breach of a prisoner’s rights. For example prisoners must make use of the existing complaints mechanisms available to them and if other remedies can provide effective redress they must be used instead of financial compensation. This ensures that compensation is reserved for exceptional cases where it is the only appropriate remedy. 
It is important to note to avoid confusion on this point that when I say “prisoners” I am using that term to refer to all persons under the control or supervision of the State. The Act applies to claims made by prisoners whether sentenced or remanded; people on community-based sentences or home detention; people subject to conditions under the Parole Act 2002; persons arrested and detained under the Armed Forces Discipline Act 1971 who are awaiting release or trial; or members of the armed forces who are service detainees or service prisoners. 
If compensation is awarded to a prisoner or if a settlement agreement is entered into the Act requires that the agency responsible for the breach must pay the money to the Secretary for Justice. Deductions are made first by the Ministry of Justice to pay any legal aid debt related to the compensation claim and any outstanding reparation owed to victims in any earlier orders under the Act in favour of victims. The Act then allows victims of a prisoner to claim against the money through a simplified victims’ claims process. 
This process provides an easy and cost-effective way for victims to take a civil claim in circumstances where the offender has the means to pay at least some of the damages and also importantly when the Crown has control of the money. The ministry works with agencies courts and victims’ advisers to identify possible victims and contact them. Notices of payments to prisoners are also published in the  
Gazette 
 on the ministry’s website and in newspapers. A victims’ special claims tribunal then determines any claims received. 
The Act will effectively expire on 1 July 2013 due to the sunset clauses contained in it. If the Act expired the restrictions on the awards compensations and simplified victims’ claims process would no longer apply to prisoners’ claims lodged from that date. The Prisoners’ and Victims’ Claims (Continuation and Reform) Amendment Bill will therefore repeal the sunset clauses in the Act and make the current regime permanent. It is important that we keep the clear statutory guidelines on awarding compensation and that victims continue to have an easy way to make a civil claim if prisoners receive compensation payments. In addition the bill replaces the Prisoners’ and Victims’ Claims (Redirecting Prisoner Compensation) Amendment Bill which was introduced last year. That bill has now been discharged. 
The new bill reflects the change of direction I signalled in October. I indicated that I would rethink the redirection bill and seek the views of other parties. The bill will make sure victims will continue to benefit from the current regime while also recognising that we need to strike a balance between victims’ rights and the legitimate claims of prisoners whose human rights have been breached. The bill ensures this system is fair and balanced and avoids any unintended injustices. 
Additionally the bill ensures that victims’ ability to bring claims within the civil limitation period is not affected by any administrative delays. It stops the clock on the civil limitation period on victims’ claims while the Ministry of Justice makes the necessary deductions from the compensation to pay legal aid and existing debts to victims. This means that victims of the prisoner will not be locked out of the simplified claims process due to administrative delays. The bill also includes a clarification for the avoidance of doubt that the Act applies to prisoners’ claims of unlawful detention. These claims arise from time to time generally when a prisoner is held beyond their statutory release date due to an administrative error. 
The underlying purpose of the Act is to require offenders to address the harm that they have caused to their victims before receiving the benefit of any compensation for breaches of their rights by the Crown. Abuse by people in power is not acceptable in relation to prisoners and it is something that we take very seriously. The Government has great confidence in the ongoing integrity and professionalism of Department of Corrections staff working in New Zealand prisons. However if breaches do occur we should respond fairly in a way that appropriately balances the rights of prisoners and their victims. I commend this bill to the House.