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Simon Power

10 March, 2009

Community Law Centres get funding

The Government has secured funding that will ensure the immediate future of New Zealand's 27 community law centres, Justice Minister Simon Power announced today at the annual meeting of the Coalition of Community Law Centres in Wellington.


"I am delighted to announce that interim measures I will put in place will mean community law centres will have the same level of funding next year as they enjoyed in 2008/09," Mr Power said.


Community law centres are funded primarily by revenue from the Lawyers and Conveyancers Special Fund, which consists of 60 per cent of the interest earned on solicitors' trust accounts.


But a slowing housing market coupled with a heavy decline in interest rates meant they were facing a funding cut of about 68 per cent, meaning drastic cuts to service in some centres, with others likely to not survive.


Mr Power says he was not prepared to allow that to happen.


"These are important services which are even more vital in difficult economic times.


"This Government is committed to ensuring that everyone, not just a privileged few who can afford it, has access to justice.


"That was why we took the funding shortfall very seriously. I was determined that this service would not be jeopardised, and looked at all possible options.


"As well as this one-year interim measure, the Government is committed over the medium term to find an enduring funding framework to ensure continuity of the services provided by community law centres.


"The arrangement with the solicitors' trust account is proving to be unsatisfactory due to the volatile nature of both the housing market and lower interest rates.


"It is important the community law centres do not find themselves in this predicament again in a year's time.


"I would like to thank other political parties for their interest, as well as the community law centres for their constructive engagement on this matter over the past few months."

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