XN000022-1992-07-01 — Page 8

WEDNESDAY, JULY 1, 1992

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THIS NEW APPROACH TOWARDS MEANS-TESTING, WHAT WE CALL, FOR SHORT, THE 'FINANCIAL CAPACITY' APPROACH, IS A SIGNIFICANT CHANGE, AND IT IS WORTH SPENDING A FEW MINUTES TO EXPLAIN ITS ADVANTAGES, AND WHAT IT MEANS FOR THE PEOPLE OF HONG KONG, FIRST, THE NEW APPROACH REMOVES THE IMPERFECTIONS OF THE OLD SYSTEM WHEREBY A PERSON WHOSE FINANCIAL RESOURCES COMPRISE MAINLY OF INCOME OR CAPITAL MAY NOT BE ABLE ΤΟ SATISFY THE SEPARATE REQUIREMENTS GOVERNING DISPOSABLE INCOME AND DISPOSABLE CAPITAL. SECONDLY, IN CALCULATING DISPOSABLE INCOME, THE PAYMENTS MADE BY AN APPLICANT FOR SALARIES TAX AND AS CONTRIBUTIONS TO A PENSION OR RETIREMENT SCHEME MAY BE DISCOUNTED. MORE IMPORTANTLY, IN CALCULATING AN APPLICANT'S DISPOSABLE CAPITAL, THE ENTIRE VALUE OF ANY INTEREST HE MAY HAVE IN THE ONLY OR MAIN DWELLING IN WHICH HE RESIDES SHALL BE DISREGARDED. PREVIOUSLY, ONLY THE FIRST $300,000 THE VALUE OF AN APPLICANT'S INTEREST IN THE DWELLING IN WHICH RESIDES MAY BE DISCOUNTED, THE MORE FLEXIBLE APPROACH TOWARDS ASSESSMENT OF AN APPLICANT'S FINANCIAL RESOURCES, TOGETHER WITH IMPROVEMENTS TO THE METHODOLOGY OF CALCULATING DISPOSABLE INCOME AND CAPITAL, MEANS THAT SIGNIFICANTLY MORE PEOPLE IN OUR COMMUNITY, INCLUDING THOSE SUFFICIENTLY WELL OFF TO OWN A REASONABLE HOME, WILL BECOME ELIGIBLE FOR PUBLICLY FUNDED LEGAL AID. FURTHERMORE, UNDER THE LEGAL AID IN CRIMINAL CASES (AMENDMENT) RULES 1992 WHICH HAVE COME INTO FORCE TODAY, THE DIRECTOR OF LEGAL AID IS GIVEN THE DISCRETION TO GRANT LEGAL AID TO A PERSON CHARGED WITH CRIMINAL OFFENCES EVEN IF HIS DISPOSABLE FINANCIAL RESOURCES EXCEED THE LIMIT OF $120,000, IF THE DIRECTOR IS SATISFIED THAT IT IS DESIRABLE TO DO SO IN THE INTERESTS OF JUSTICE. IT IS ESTIMATED THAT, FOLLOWING THE RAISING OF THE FINANCIAL LIMIT TO $120,000 AND THE GRANTING OF THIS DISCRETION TO THE DIRECTOR OF LEGAL AID, THE GREAT MAJORITY OF PERSONS CHARGED WITH CRIMINAL OFFENCES WILL BECOME ELIGIBLE FOR THE GRANT OF LEGAL AID,

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AS THE LEGAL AID VET IS NOW MUCH WIDER THAN BEFORE, I DO NOT THINK IT WOULD BE RIGHT TO FURTHER RELAX THE LIMIT ON THE APPLICANT'S FINANCIAL RESOURCES (BY RAISING IT TO $180,000] IN THE NEAR FUTURE, SUGGESTED BY MR ZACHARY WONG. BUT WE WILL CERTAINLY KEEP THE EXISTING FINANCIAL LIMIT UNDER REGULAK REVIEW,

WHILE ON THE SUBJECT OF FUNDING, IT MAY BE USEFUL IF I PROVIDE SOME INFORMATION ON THE AMOUNT OF RESOURCES WHICH THE GOVERNMENT HAS ALLOCATED TO THE AREA OF LEGAL AID SERVICES. THE PROVISION FOR THE LEGAL AID DEPARTMENT HAS INCREASED SUBSTANTIALLY IN THE LAST FIVE YEARS, BY SOME 90%, FROM $116M IN 1987 TO $236M IN 1992. THIS INCLUDES AN INCREASE OF 31% IN 1990-91 OVER THAT FOR THE PREVIOUS YEAR, AND A FURTHER INCREASE OF 16% IN 1991-92 OVER THAT FOR THE PRECEDING YEAR. THE SUBVENTION TO THE DUTY LAWYER SCHEME HAS ALSO BEEN INCREASED SUBSTANTIALLY IN THE SAME PERIOD, BY 129 %, FROM $21M IN 1987 TO $48M IN 1992, ALTHOUGH A LARGE PART OF THE INCREASE WAS DUE ΤΟ THE EXPANSION OF THE DUTY LAWYER SCHEME IN MAGISTRATES COURTS. INDEED, IF WE TAKE INTO ACCOUNT FULL COSTS (I.E. INCLUDING ACCOMMODATION AND STAFF ON-COSTS), FOR THE CURRENT YEAR THE GOVERNMENT WILL BE SPENDING UP TO $360M ON THE PROVISION OF LEGAL AID AND RELATED SERVICES. GIVEN THE DRAMATIC INCREASES IN FUNDING WHICH HAVE TAKEN PLACE IN RECENT YEARS, I DO NOT THINK THE GOVERNMENT CAN BE FAULTED FOR BEING UNDULY FRUGAL IN ITS PROVISION FOR LEGAL AID SERVICES. THE GOVERNMENT WILL CERTAINLY CONTINUE TO STRIVE TO IMPROVE THE QUALITY AND ACCESSIBILITY OF THE LEGAL AID SERVICES AVAILABLE TO THE PUBLIC, BUT PRIORITY WOULD BE GIVEN TO ENCOURAGING MORE EFFICIENT AND COST- EFFECTIVE UTILISATION OF RESOURCES RATHER THAN SIMPLY THROWING MORE MONEY AT THE SYSTEM. FROM WHAT 1 HAVE HEARD FROM THIS DEBATE, I AM PLEASED TO NOTE THAT THIS IS THE APPROACH FAVOURED BY MEMBERS AS WELL.

/MR DEPUTY