Legal Services Commission (Miscellaneous) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 19 May 2016.)

The Hon. J.A. DARLEY (16:52): I rise to support the second reading of this bill and, like other honourable members, use this opportunity to place on the record my thanks for the important community service provided by the Legal Services Commission. I know that my office is not alone in terms of its use of this service, as well as other community-based legal services, as a referral point for constituents with legal issues. There is no question that such services play a very important role in terms of providing legal advice, particularly to those in the community who can least afford it.

The Hon. Andrew McLachlan and the Hon. Mark Parnell have placed on the record the key concerns regarding this bill, particularly those raised by the Law Society. The Hon. Mark Parnell in particular has asked some important questions of the minister in that respect. I, too, look forward to hearing from the minister in response to those questions and certainly keep open the possibility of supporting amendments aimed at addressing the concerns that have been raised. With those very few words, I support the second reading of the bill.

The Hon. P. MALINAUSKAS (Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (16:54): I would like to thank all contributors up to this point and look forward to taking the bill into the next stage.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. P. MALINAUSKAS: The purpose of this bill is to reduce the number of commissioners that comprise the commission from 10 to five people, and make skills, knowledge and expertise the relevant factors when appointing a commissioner. The bill also establishes the legal profession reference committee, which has broad jurisdiction to advise the commission in relation to any matter referred to it or any of the commission's functions under the act.

The Hon. Mr Parnell asked, 'How much money does the profession provide to the Legal Services Commission by virtue of the percentage contribution of interest accrued on the combined trust account?' According to the Legal Services Commission Annual Report (financial statements), in 2015 the commission received $2,854,000 in total revenue from funds administered by the Law Society of South Australia. The amount received in 2014 was $2,552,000. The total revenue is made up from funds from the Statutory Interest Account and from the interest earned on the Legal Practitioners Trust Account.

The honourable member also queried why there are no Law Society representatives on the commission. The catalyst for this bill is a review that was commenced in 2011 into the provision of legal aid in state criminal cases. The committee, which was comprised of senior legal practitioners released four reports which recommended, among other things, a change to the governance structure of the commission, which would see the commissioner replaced with a director of legal services.

Although the government has elected to retain the commission, it agreed with the committee that a change to the governance structure was required. The government is of the view that representative boards are not the appropriate option to run state financial enterprises. As noted in the other place, the commission is primarily a dispenser of state and commonwealth money to grant recipients in order for them to purchase legal services in the private legal domain.

It is perfectly reasonable that there is an independence of that organisation from the people who are ultimately the financial beneficiaries of its distribution of largesse and that the members of the commission are selected by the Attorney-General of the day, based on their skills and knowledge. In moving away from a representative board, we remove potential for conflict where a person is part of the management of the commission, and yet is also a beneficiary of that organisation's funds.

To address concerns that legal practitioners would not be sufficiently represented, the Law Society has been given an advisory role under the bill. In addition to a requirement for the Attorney-General to consult with the Law Society and the Bar Association before nominating a person or appointment to the commission, the Law Society has been given the power to nominate two members to the Legal Profession Reference Committee. With those few words, I commend the bill.

The Hon. S.G. WADE: If I could just clarify the minister's last comments, I support not having a representative board but the minister's comments could be taken to suggest that the government is not inclined to appoint legal representatives. With his comments that it is not helpful for board members to be a potential beneficiary, he could be taken to be implying that the government will not be inclined to appoint legal practitioners to the commission.

The Hon. P. MALINAUSKAS: We reject the assertion that that is the implication of my remarks, but I would draw the Hon. Mr Dawkins' attention to the fact that there are indeed legal professionals on the newly-constituted commission. In fact, the chairperson, according to the requirements, has to be a person who is holding judicial office or is a legal practitioner of not less than five years' standing.

The ACTING CHAIR (Hon. J.S.L. Dawkins): I presume you meant the Hon. Mr Wade.

The Hon. S.G. Wade: No, he was speaking through the Chair; he was being particularly orderly.

The ACTING CHAIR (Hon. J.S.L. Dawkins): Very good. I call the Hon. Mr Wade now.

The Hon. S.G. WADE: Minister, could I have the reference again?

The Hon. P. MALINAUSKAS: Part 2, clause 5.

Clause passed.

Remaining clauses (2 to 15), schedule and title passed.

Bill reported without amendment.

Third Reading

The Hon. P. MALINAUSKAS (Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (17:03): I move:

That this bill be now read a third time.

Bill read a third time and passed.