A legal aid revamp aimed at slashing costs is appalling as it would reduce choice and bring down quality of service, critics say.
Justice Minister Simon Power today revealed proposals to reduce legal aid costs by $138m over four years.
The changes, to be introduced to Parliament by mid-year, include introducing a $100 user fee, charging interest on debt, tightening the eligibility criteria, and having the State-owned Public Defence Service (PDS) take up 50 percent of criminal cases.
Barrister John Anderson from the Criminal Bar Association said the group was appalled at the changes.
The Government was nationalising a profession and creating a public monopoly of criminal defence lawyers by expanding the PDS.
The change would also mean people could not choose their own lawyer - "legal aid is a loan, not a grant".
But Mr Power said the changes were designed to target areas which do not necessarily require legal representation and groups with relatively higher incomes.
Legal aid spending has increased by 55 percent from $111 million to $172m in the past three years.
"That growth is forecast to result in a $402 million gap between forecast and baseline legal aid expenditure over five years."
Mr Anderson said PDS would cost taxpayers more money.
"In 2010, the PDS cost $1612 per criminal legal aid case, whereas lawyers as a whole cost $1343 per case.
"When it is rolled out to smaller centres and does more complex cases, its costs per case will increase even more."
Law Society president Jonathan Temm said the changes would affect the quality service when tight fiscal restraints resulted in hiring inexperienced and overworked lawyers.
"We are very concerned about the new direction that has been taken in legal aid. We don't believe the forecasted savings are certain and we don't actually accept that the forecasted costs which drive these changes are certain either."
Labour's justice spokesman Charles Chauvel said the changes threatened the access of New Zealanders to justice.
He said Labour supported the PDS concept, but had concerns over the lack of balance in Mr Power's proposal, saying it would lead to a lack of quality in legal defence options for New Zealanders facing charges.
"It is unlikely to be cheaper in the long run if Kiwis don't get access to quality justice."
Mr Power proposed expanding PDS to take up to 50 percent of criminal legal aid cases in Auckland, Hamilton and Wellington would be taken up by the Public Defence Service. Over time, it would expand to Tauranga, Hastings, Dunedin and Christchurch. The change would be phased in from October 2011.
The Government also plans to tightened the eligibility criteria.
Only single people on less than $22,000 a year and people, with children, on less than $50,000 a year would be able to access legal aid. At present there is no threshold.
People who would not be eligible could apply, but would have to prove their case was likely to be expensive and they were genuinely unable to pay for a lawyer.
The Government plans to tightened the merits test for family and civil cases, which would focus on the prospects of success of the case.
Fixed fees for cases that have standard cost structures, including criminal summary cases, most family cases, and some civil cases would also be introduced.
Mr Power said the proposed changes would balance cost reduction against access to justice.
"I must make it very clear that where vulnerable parties have been harmed or are at risk of being harmed, the state will provide legal means to secure protection. There is no question of that.
"But legal aid was never intended to be used to decide how many weeks a child spends on an overseas holiday, or to determine petrol costs associated with taking a child to school."
Mr Power said there would still be a $243m gap in legal aid funding over four years, despite the changes.
He would be reporting to Cabinet in September with further options after a closer review on cost drivers, particularly in the Family Court.
