New Zealand Law Society - Legal aid gross payments up 13.5%

Legal aid gross payments up 13.5%

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Gross legal aid payments to providers were up 13.5% in the year to 30 June 2019 from the previous year, information released by the Ministry of Justice shows.

The gross payments of $179,707,442.95 were well up on the $158,318,520.26 paid in the 2017/18 year and the highest since major changes were made to legal aid entitlements in 2011.

Legal aid providers received an average gross payment of $144,112 and the median payment was $99,449.

The ministry says payments to firms are for legal services provided by approved providers under the legal aid schemes and may not have been made directly to any individual named in the report. The payments include the fees of approved providers, including those claimed on behalf of other approved providers, and disbursements for general office costs, travel costs, and special disbursements, which include fees for agents, expert witnesses, forensic tests, interpreters and special reports, such as medical or valuation reports.

Gross legal aid payments, year to 30 June

Year Payments Providers Average Median
2011 $ 154,090,071.28 1488 $103,555.16 $62,257.61
2012 $148,306,784.40 1465 $101,233.30 $64,152.27
2013 $130,258,884.90 1311 $99,358.42 $63,132.73
2014 $124,580,223.80 1240 $100,467.92 $63,064.61
2015 $130,215,953.30 1224 $106,385.58 $68,147.22
2016 $134,759,778.10 1210 $111,371.72 $73,528.42
2017 $143,379,904.64 1193 $120,184.33 $83,152.80
2018 $158,318,520.26 1205 $131,384.66 $90,497.00
2019 $179,707,442.95 1247 $144,111.82 $99,448.59

Size of payments

In the year to 30 June 2019, 49.8% of providers received gross payments of over $100,000. This was up from 42.4% of providers who received gross payments over that level in the year to 30 June 2017. In the latest year almost a quarter - 21.6% - of providers received gross payments of under $30,000.

Gross legal aid payments by size of annual payment, year 30 June

Size of payment 2019 2018 2017
$1 million-plus 8 7 6
$500,000-$999,000 41 30 25
$200,000-$499,000 221 183 140
$100,000-$199,000 351 328 335
$50,000-$99,000 258 277 276
$30,000-$49,000 99 105 120
$10,000-$29,000 134 170 146
$0-$9,999 135 105 145
Total 1247 1205 1193

Payments by location

There was a wide variance in average and median gross payments to providers around the country. The average gross payment per providers in Kaikohe, Gisborne, Whanganui, Whakatane, Lower Hutt and Tokoroa were highest in the latest year, while Te Puke, Kaitaia, Havelock North, Levin and Oamaru had the lowest gross payments per provider.

Gross legal aid payments by location, year to 30 June 2019 (minimum of 3 providers per location)

Location Total Providers Average Median
Kaikohe $2,321,283.84 7 $331,611.98 $301,764.04
Gisborne $3,439,854.31 12 $286,654.53 $160,620.13
Whanganui $3,916,097.92 14 $279,721.28 $220,003.02
Whakatane $1,941,205.15 7 $277,315.02 $158,423.16
Lower Hutt $4,620,316.38 17 $271,783.32 $211,709.01
Tokoroa $716,121.87 3 $238,707.29 $302,113.06
Hastings $3,096,855.56 13 $238,219.66 $198,233.26
Palmerston Nth $4,590,206.75 21 $218,581.27 $168,735.72
Rotorua $8,325,381.06 39 $213,471.31 $111,454.42
Paraparaumu $728,145.42 4 $182,036.36 $135,458.57
Otaki $531,275.68 3 $177,091.89 $115,739.37
Wellington $13,861,747.48 79 $175,465.16 $102,535.31
Morrinsville $526,174.53 3 $175,391.51 $160,831.23
Pukekohe $842,229.83 5 $168,445.97 $120,924.60
Whangarei $5,711,911.22 34 $167,997.39 $148,165.94
Napier $3,002,447.76 18 $166,802.65 $146,600.32
Hamilton $11,928,135.86 75 $159,041.81 $120,238.94
Upper Hutt $1,238,527.42 8 $154,815.93 $148,707.62
Invercargill $3,089,116.84 20 $154,455.84 $95,424.89
Rangiora $880,108.55 6 $146,684.76 $153,790.91
Greymouth $1,005,520.54 7 $143,645.79 $103,481.03
New Plymouth $3,341,808.75 24 $139,242.03 $122,278.29
Carterton $417,465.03 3 $139,155.01 $115,405.56
Porirua $1,792,556.46 13 $137,888.96 $95,305.51
Tauranga $6,409,899.80 47 $136,380.85 $82,602.82
Christchurch $14,610,395.00 110 $132,821.77 $95,136.17
Auckland $57,149,834.20 433 $132,152.53 $93,763.00
Timaru $1,042,319.24 8 $130,289.91 $101,845.35
Nelson $3,390,279.04 27 $125,565.89 $75,849.62
Queenstown $618,529.59 5 $123,705.92 $168,083.15
Ashburton $475,597.68 4 $118,899.42 $119,702.71
Blenheim $984,832.48 9 $109,425.83 $53,628.00
Kerikeri $1,030,977.35 11 $93,725.21 $87,416.26
Taupo $1,009,620.24 11 $91,783.66 $69,314.43
Dunedin $3,925,875.22 43 $91,299.42 $80,215.80
Orewa $312,478.07 4 $78,119.52 $37,268.12
Masterton $588,709.17 8 $73,588.65 $60,254.79
Greytown $208,258.04 3 $69,419.35 $57,089.00
Oamaru $337,579.86 6 $56,263.31 $62,104.37
Levin $278,047.50 5 $55,609.50 $39,986.91
Havelock North $212,562.90 4 $53,140.73 $32,410.89
Kaitaia $342,974.45 7 $48,996.35 $58,071.90
Te Puke $73,145.57 3 $24,381.86 $26,515.06
         
All Others $4,841,033.34 64 $75,641.15 $57,455.20
         
Total $179,707,442.95 1247 $144,111.82 $99,448.59

Highest gross payment per provider and proportion over $100,000, year to 30 June 2019

Location Highest $100,000+ Proportion 100,000+
Ashburton $202,273.26 2 50.0%
Auckland $1,955,474.31 206 47.6%
Blenheim $ 232,621.48 4 44.4%
Carterton $232,062.85 2 66.7%
Christchurch $1,240,545.41 53 48.2%
Dunedin $508,464.42 14 32.6%
Gisborne $1,513,625.77 9 75.0%
Greymouth $333,657.07 5 71.4%
Greytown $135,639.83 1 33.3%
Hamilton $577,456.97 47 62.7%
Hastings $611,080.69 10 76.9%
Havelock North $139,909.17 1 25.0%
Invercargill $721,416.84 9 45.0%
Kaikohe $840,935.75 6 85.7%
Kaitaia $107,658.77 1 14.3%
Kerikeri $201,283.69 4 36.4%
Levin $123,333.77 1 20.0%
Lower Hutt $930,222.38 12 70.6%
Masterton $163,673.43 2 25.0%
Morrinsville $257,972.98 3 100.0%
Napier $409,512.78 13 72.2%
Nelson $849,181.94 11 40.7%
New Plymouth $391,357.33 14 58.3%
Oamaru $76,894.30 0 0.0%
Orewa $235,521.84 1 25.0%
Otaki $409,649.31 2 66.7%
Palmerston Nth $793,030.66 15 71.4%
Paraparaumu $383,313.13 2 50.0%
Porirua $472,283.52 6 46.2%
Pukekohe $423,452.70 4 80.0%
Queenstown $218,510.04 3 60.0%
Rangiora $230,661.95 5 83.3%
Rotorua $1,726,794.06 22 56.4%
Taupo $261,259.94 3 27.3%
Tauranga $732,891.97 19 40.4%
Te Puke $42,067.67 0 0.0%
Timaru $271,431.27 4 50.0%
Tokoroa $400,938.33 2 66.7%
Upper Hutt $301,840.05 5 62.5%
Wellington $1,753,738.82 41 51.9%
Whakatane $886,702.91 5 71.4%
Whanganui $964,346.72 11 78.6%
Whangarei $512,624.17 22 64.7%
       
All Others $360,318.73 19 29.7%
       
Total $1,787,171.78 621 49.8%
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