XN000022-1994-10-06 — Page 39

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THURSDAY, OCTOBER 6, 1994

THE FUND IS INTENDED TO BE SELF-FINANCING WITH INCOME GENERATED FROM THE INVESTMENT OF THE FUND, LEGAL COSTS RECOVERED AND CONTRIBUTION PAID BY ASSISTED CONSUMERS IF THEIR CASES ARE SUCCESSFUL.

FEE OF

THE FUND WILL CHARGE THE APPLICANT AN ADMINISTRATION $100 FOR SMALL CLAIMS TRIBUNAL CASES AND $1,000 FOR DISTRICT COURT CASES. IT WILL RECEIVE 10 PER CENT OF ANY DAMAGES RECOVERED BY ASSISTED CONSUMERS IN SUCCESSFUL CASES, AND DEDUCT FROM SUCH DAMAGES AN ADDITIONAL AMOUNT TO COVER THE DIFFERENCE BETWEEN THE LEGAL COSTS PAID BY THE CONSUMER COUNCIL BUT NOT RECOVERED FROM THE OPPONENT PARTY.

"THE TOTAL AMOUNT TO BB RECOVERED FROM THE CONSUMERS WILL. BE SUBJECT TO A CEILING OF 25 PER CENT OF THE TOTAL DAMAGES AWARDED FOR SMALL CLAIMS TRIBUNAL CASES AND 50 PER CENT FOR DISTRICT COURT CASES, THE SPOKESMAN SAID.

THE CONSUMER COUNCIL

ESTIMATES THAT IN THE FIRST YEAR THE RECURRENT INCOME GENERATED WOULD BE ADEQUATE FOR 25 SMALL CLAIMS TRIBUNAL CASES AND 10 DISTRICT COURT CASES.

UNDER THE TRUST DEED, THE GOVERNMENT WILL APPOINT A MANAGEMENT COMMITTEE TO ASSIST THE CONSUMER COUNCIL IN MANAGING THE FUND.

"TO ENHANCE THE TRANSPARENCY AND ACCOUNTABILITY OF THE FUND, THERE WILL BE CHECKS AND BALANCES IN THE TRUST DEED TO ENABLE THE GOVERNMENT AND THE PUBLIC TO MONITOR THE OPERATION OF THE FUND. THESE INCLUDE

THE THE REQUIREMENT OF ANNUAL AUDIT OF ITS ACCOUNTS AND TABLING OF ITS ANNUAL REPORT AND ACCOUNTS IN THE LEGISLATIVE COUNCIL,' HE SAID.

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THE CONSUMER COUNCIL WILL PRESCRIBE ELIGIBILITY CRITERIA WHICH CONSUMERS

THESE NEED TO FULFIL IN SEEKING ASSISTANCE FROM THE FUND. REQUIRE THE APPLICATION OF A MERITS TEST.

THAN

ANY

THE MERITS TEST WILL FOCUS ON WHETHER THE CASE WILL INVOLVE GROUP SIGNIFICANT PUBLIC INTEREST AND INJUSTICE; WHETHER IT AFFECTS A OF CLAIMANTS OR HAS THE POTENTIAL TO AFFECT A LARGE GROUP OF PEOPLE; WHETHER

ACTION IS COST-EFFECTIVE AND MORE DESIRABLE COURT OTHER AVAILABLE MEANS: AND WHETHER THE LEGAL ACTION PUBLICITY VALUE AND BE ABLE TO BOTH PROMOTE THE CONSUMER HAVE A DETERRENT EFFECT ON UNSCRUPULOUS BUSINESS PRACTICES.

[1]

HAVE WILL CAUSE AND

'APPLICANTS NEED NOT UNDERGO A MANDATORY MEANS TEST IN ORDER TO MEANS QUALIFY FOR ASSISTANCE. THEY WILL BE REQUIRED TO DECLARE THEIR BY MAKING A STATUTORY DECLARATION, THE SPOKESMAN SAID.

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"THE FUND WILL TAKE INTO ACCOUNT AN APPLICANT'S ABILITY TO SEEK LEGAL REDRESS AT HIS OWN COST AS ONE OF THE MANY FACTORS IN DECIDING WHETHER TO ACCEPT OR REJECT A PARTICULAR CASE.

"THE MEANS OF THE CONSUMERS SHOULD NOT BE THE OVERRIDING

CONSIDERATION IN PROVIDING LEGAL ASSISTANCE UNDER THE FUND,

" HE SAID.

FOR THE

IT WOULD BE IN THE INTEREST OF THE PUBLIC "SOMETIMES FUND TO ASSIST AGGRIEVED CONSUMERS IN TAKING GROUP LEGAL ACTIONS THOUGH NOT ALL THE CONSUMERS IN THE GROUP LACK THE NECESSARY MEANS.

EVEN

/"SUBJECT TO