Dalziel Lianne: Questions for Oral Answer — Questions to Ministers 
Dalziel Lianne: Questions for Oral Answer — Questions to Ministers 
[Volume:652;Page:1057] 
10.  
Hon LIANNE DALZIEL (Labour—Christchurch East) 
 to the  
Minister of Justice 
: What reports if any has he received on funding for community law centres? 
Hon SIMON POWER (Minister of Justice) 
: 
 I have received two reports from the Legal Services Agency and two reports from the Ministry of Justice outlining a significant drop in funding available for community law centres. As the member will know community law centres receive their funding from interest earned on solicitors’ nominated trust accounts. Because of the cooling housing market and falling interest rates I am advised that community law centres have been informed by the Legal Services Agency that their funding could drop by an initial assessment of up to 43.9 percent in some cases in the 2009-10 financial year. 
Hon Lianne Dalziel 
: Does the Minister agree in principle with the proposal for the Government to provide alternative funding for community law centres to ensure they do not need to drastically cut services at a time when demand for those services will inevitably increase; if not why not? 
Hon SIMON POWER 
: I can assure the member that I am taking this matter extremely seriously. This Government is committed to access to justice for all not just for those privileged few who can afford to access such redress as that offered by for example the Supreme Court. Coincidentally the drop in community law centres’ funding is roughly equivalent to the $4.3 million that was committed by the previous Government to the bronze plating of the new Supreme Court. 
Shane Ardern 
: Why is the drop in funding occurring? 
Hon SIMON POWER 
: Community law centres are funded primarily through revenue from the Lawyers and Conveyancers Special Fund. The fund consists of 60 percent of interest earned on solicitors’ nominated trust accounts. As I said earlier the recent cooling of the housing market is reducing the availability of funding. This matter requires the Government’s attention and that is what it is receiving. I can advise the House that this issue is forming part of my discussions and is part of Budget considerations. 
Hon Lianne Dalziel 
: Is the Minister aware that the Ministry of Justice deferred its planned review of services and funding arrangements of community law centres in 2006 due to the then high level of the special fund— 
Hon Dr Nick Smith 
: And the previous Government did nothing. 
Hon Lianne Dalziel 
: —yes it was under the previous Government—and also the stability of the special fund? Circumstances have changed and we have just heard that it is the interest generated from the special fund that is the source of the funding so it is not unreasonable to ask the Minister when he instructed the Ministry of Justice to commence that review in light of the report of the Legal Services Agency. 
Hon SIMON POWER 
: When this matter was brought to my attention just prior to the new Government being sworn in it was one of the first things I raised with officials upon my taking the warrant of Minister of Justice. Since that time as well as receiving those reports I can advise the member that I will be meeting with the Coalition of Community Law Centres on 19 February. Kevin Campbell will be leading that delegation as I understand it. As I said I take this matter seriously. It will be forming part of my Budget deliberations and considerations with the Minister of Finance. 
Rahui Katene 
: What actions will the Government take to review the actual percentage of interest earned on solicitors’ nominated trust accounts that is retained by the banks in order to be able to support those most in need of gaining access to justice and to enable them to continue to benefit from the services of community law centres? 
Hon SIMON POWER 
: I can advise the member that the very matter she raises is currently forming part of my deliberations as I work towards what I hope will be a solution that meets at least some of the expectations of most parties.