Where did all the Legal Aid money go?
Tens of millions earmarked for legal aid services disappears into general revenue
BCGEU
Nov 5 '09

While the B.C. government cuts funding to legal aid services and forces the Legal Services Society (LSS) to reduce administrative costs by closing regional offices, tens of millions of dollars earmarked for legal aid services is disappearing into the general revenue fund, the B.C. Government and Service Employees' Union said today.

There is a 7 per cent tax on legal services in B.C., with the revenue earmarked to fund legal aid services for low-income people who cannot afford access to basic legal services.

In an op-ed published in 2007, then-president of the Canadian Bar Association, Frits Verhoeven estimated that the tax "brings in well over $100 million per year." However, the government has not transferred more than $67.8 million to the Legal Services Society for legal aid services since 2007, according to the society's service plan.

"Where did all the money go?" asked BCGEU president Darryl Walker. "By our estimate, the government has been holding back up to a third of the revenue that should go to legal aid. Now they are forcing the society to close regional offices, and are under-funding legal aid services to low-income families."

In 2001, the LSS operated 19 branch offices around the province. When the BC Liberal government cut 40 per cent from the legal aid budget in 2002, the society was forced to close 12 branch offices. In 2010 only 2 regional offices will remain, in Vancouver and Terrace.

The budget cuts have meant that the scope of services has been restricted and eligibility criteria tightened, excluding many more people from accessing legal services. In January 2009 the LSS was forced to cut further - laying off 38 staff from its Lower Mainland office, despite a huge increase in referrals for services.

"The government must be made to explain how they can continue to cut legal aid services while keeping up to a third of the legal services tax revenue that is earmarked for the service," Walker said.