Fri, 27 Nov 2009 5:35p.m.
By Charlotte Tonkin
As many as 200 corrupt lawyers may be rorting the legal aid system according to a review released today.
It found some are overcharging, while others are stretching out their cases to get the maximum legal aid payments.
The chair of the review, Dame Margaret Bazley, says unless changes are made the legal aid system may not even be able to continue.
"Disturbingly I have heard many allegations suggesting a small but significant group of lawyers are rorting the system by artificially extending cases, manipulating the preferred lawyer policy to get more cases and conning the clients to pay a top up over and above the legal aid payment," she says.
No court she visited is without its problems.
To combat the failings, she has put forward 86 recommendations to clean up the system and ensure legal aid cannot be abused by lawyers or their clients.
They include abolishing the legal services agency and bringing legal aid under the Ministry of Justice, which she says is better resourced.
Dame Bazley is scathing of the agency which is responsible for the quality of legal aid services. She says it hasn't been diligent in getting rid of poorly-performing lawyers, and nor has the Law Society, which she says could have done more.
The Law Society denies this.
"We have tried over the last five years to have a relationship with the Legal Services Agency in which the bureaucracy was lessened and there was more of a focus on the quality of what was being delivered," says Jonathan Temm, "but that's been a very difficult relationship for us and we haven't had a lot of ability to implement our ideas."
Dame Bazley also says the legislation overly protects lawyers. She wants lawyers to be accredited before they can provide legal aid services to weed out dodgy lawyers, and says there needs to be a more effective way of complaining about lawyer's practices.
Justice Minister Simon Power says he is deeply concerned by the findings.
"What she has identified goes to the very centre of our legal system, and some of it requires urgent attention," he says.
Dame Bazley has set a time limit of three years for the problems to be fixed, but Mr Power says he'll take the abolishment of the legal services agency to Cabinet as early as Monday.
But if Dame Bazley's deadline isn't met, she says an independent regulator will have to be brought in.
In her report Dame Bazley singles out Manukau in particular as a hotbed of lawyers gaming the system.
Dame Bazley says she has been told by people who work in one particular court that up to 80 percent could be gaming the system.
But Manukau lawyers Jane Northwood and Denise Wallwork, with 36 years' experience between them, dismiss that claim as "utter rubbish".
They say the report is a slap in the face after their own bar approached Mr Power and Dame Bazley with the names of culprits.
The Legal Services Aid website shows Ms Northwood claimed $207,000 in legal aid in the year to June. Ms Wallwork claimed $226,000. They say much of that went on tax, overheads and expert fees.
Ms Northwood and Ms Wallwork agree dodgy lawyers should be identified, but say Dame Bazley's report taints them all.
3 News