XN000022-1986-01-07 — Page 2

TUESDAY, JANUARY 7, 1936

POORER TO BENEFIT MOST FROM LEGAL AID PROPOSALS *****

POORER PEOPLE WILL BENEFIT MOST FROM PROPOSALS BEFORE THE FINANCE COMMITTEE TO INCREASE THE THRESHOLD POINT AT WHICH CONTRIBUTIONS BECOME PAYABLE FROM DISPOSABLE INCOME FOR LEGAL

AID.

AT TOMORROW'S MEETING THE FINANCE COMMITTEE WILL BE ASKED, AMONG OTHER THINGS, TO RAISE THE THRESHOLD AT WHICH AN AIDED PERSON BECOMES LIABLE TO PAY A CONTRIBUTION, FROM THE EXISTING $750 TO $1 100.

WHILE THE PROPOSAL WOULD RESULT IN REDUCED REVENUE FROM CONTRIBUTIONS RECEIVED FROM POORER APPLICANTS, IT WOULD BRING INCREASED REVENUE FROM CONTRIBUTIONS PAYABLE BY THOSE LEGALLY AIDED PERSONS IN THE HIGHER DISPOSABLE INCOME GROUP.

CONTRIBUTIONS FOR THE FULL YEAR IN THIS AREA ARE EXPECTED TO INCREASE BY ABOUT $2.12 MILLION FROM THE CURRENT LEVEL OF ABOUT $1.5 MILLION, TO ABOUT $3.62 MILLION.

THE FINANCE COMMITTEE WILL ALSO BE ASKED TO RAISE THE MEANS TEST LIMIT FOR FINANCIAL ELIGIBILITY FOR LEGAL AID FROM THE PRESENT $1 500 A MONTH TO $2 200 A MONTH.

THIS PROPOSAL IS ESTIMATED TO INCUR ADDITIONAL RECURRENT SPENDING OF ABOUT $3.6 MILLION A YEAR, BUT THE FIGURE IS EXPECTED TO BE OFFSET BY THE $2.12 MILLION FROM INCREASED CONTRIBUTIONS.

BENEFITING MOST FROM THE PROPOSAL TO INCREASE THE ELIGIBILITY LIMIT WILL BE PEOPLE SEEKING LEGAL AID IN CIVIL CASES.

THERE WILL LIKELY BE AN INCREASE OF ABOUT 13 PER CENT IN THE NUMBER OF CIVIL CASES ELIGIBLE FOR LEGAL AID -- FROM 4 934 TO 5 558 -- COSTING ABOUT $3.03 MILLION, WITH ADDITIONAL STAFFING COSTS OF ABOUT $576 000, A YEAR.

ON THE OTHER HAND, SPENDING ON LEGAL AID IN CRIMINAL CASES IS NOT LIKELY TO INCREASE MUCH BECAUSE, AT PRESENT, ONLY ABOUT ONE PER CENT OF APPLICANTS FAIL TO MEET THE EXISTING MEANS TEST.

THE PROPOSAL TO INCREASE THE ELIGIBILITY LIMIT TO $2 200 A MONTH IS AN INTERIM MEASURE TO REFLECT CHANGES IN THE COST OF LIVING, PENDING RECOMMENDATIONS EXPECTED EARLY THIS YEAR BY A WORKING PARTY, CHAIRED BY THE DEPUTY CHIEF SECRETARY, WHICH IS LOOKING INTO THE WIDER ASPECTS OF LEGAL AID.

THE LIMITS OF FINANCIAL ELIGIBILITY FOR LEGAL AID HAVE RISEN PERIODICALLY SINCE THE ENACTMENT OF THE LEGAL AID ORDINANCE IN 1966 FROM AN ORIGINAL LIMIT OF A DISPOSABLE MONTHLY INCOME OF $500 A MONTH, AND A DISPOSABLE CAPITAL OF $3.000.

/IF APPROVED,