AustLII Home | Databases | WorldLII | Search | Feedback

Aboriginal Law Bulletin

Aboriginal Law Bulletin (ALB)
You are here:  AustLII >> Databases >> Aboriginal Law Bulletin >> 1982 >> [1982] AboriginalLawB 14

Database Search | Name Search | Recent Articles | Noteup | LawCite | Help

Gray, Ian --- "VALS Financial Crisis... The Aftermath" [1982] AboriginalLawB 14; (1982) 1(3) Aboriginal Law Bulletin 14


VALS Financial Crisis... The Aftermath

Ian Gray

In recent years the Victorian Aboriginal Legal Service has had a substantial deficit. The continuing operation of the Service depended on overdraft facilities provided by the Commonwealth Bank. When the bank advised the Service in July 1981 that it was not prepared to extend further overdraft facilities, the Service decided it would have to close unless the Government provided emergency funding. Following a meeting between the Minister, Senator Baume and VALS staff, a DAA official visited the Service and estimated the deficit to be $140,000. VALS agreed to keep its doors open until after the Federal Budget was brought down, following an offer to release $20,000 to keep the Service going until then. The Budget increased the annual grant from $441,662 to $502,000 but $140,000 of this money had been committed to write off the overdraft. No more funds were due until October. The Budget came and went and no answer was received from the Minister so on Thursday 20 August 1981 the Legal Service officially closed its doors and a sit-in took place at the offices of the Department of Aboriginal Affairs in Melbourne. The media covered this event.

In the following week two Senior DAA Officers attended the VALS and discussions took place in relation to financial controls and the budget generally. Certain deficiencies in VALS financial system were pin-pointed and an agreement was worked out whereby the Service agreed to accept the services of an accountant to assist in setting up systems of financial control. A budget for the remainder of the financial year was formulated in which the Legal Service savedd money by not replacing three staff: a solicitor, research officer and typist. The monies to be saved were paid to the Service in September so that it could pay outstanding creditors. Instalments of the annual grant are now paid monthly instead of quarterly and VALS has paid all its outstanding accounts and for the first time in many years is in credit. However the budget for the remainder of the year is very tight.

A number of questions are left unresolved by the agreement with the Government. The amount available to be spent on briefing outside barristers and solicitors has been fixed in advance on the basis of monthly allocations. These average $3,500 to $4,000 per month. This is significantly less than the average monthly outside briefing figure over the preceding 12 months. The upshot of this is a limitation in both types and numbers of cases covered. For the first time in its history VALS has been forced to introduce `guidelines' (albeit very loose) as to the granting of legal aid. VALS will now no longer automatically represent, or arrange representation for, every client in every court. In certain traffic matters (e.g. .05, unlicensed driving etc.) representation will only be arranged if there is a real prospect of imprisonment. VALS will do its best to advise people how to conduct cases and write letters to courts where appropriate.VALS will also grant aid for an appeal where the result is unacceptable. While this is superficially no worse than the situation facing recipients (or non-recipients) of legal aid from other Government Legal Aid Schemes, it is regarded by. VALS as objectionable. It has always been a fundamental principle of VALS that all clients (with the exception of any charged simply with being 'drunk and disorderly') should be represented in courts by competent banisters or solicitors. The introduction of 'guidelines' of the type traditionally employed by the Australian Legal Aid Office may be the thin end of a completely unacceptable wedge. It is hoped the situation is temporary. VALS will press for additional funding so that all cases can be covered.

Another danger arising out of the agreement with the Government is that there is now a risk that VALS will not be able to fund all its criminal trials. There is an increasing number of trials handled by VALS (most of which are currently being briefed) and it is now possible that a mere two trials in any one month could exhaust that month's 'briefing allocation'. This is a matter of utmost concern to VALS lawyers and further funding will be sought to cover this contingency.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback
URL: http://www.austlii.edu.au/au/journals/AboriginalLawB/1982/14.html