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Monday, 15 September 2003
Page: 15217


Senator Mark Bishop asked the Minister representing the Minister for Veterans' Affairs, upon notice, on 27 June 2003:

(1) In each of the past 3 years, what sum has been spent by the Military Compensation and Rehabilitation Service (MCRS) on hire of counsel, including solicitors and barristers, for: (a) legal advice on compensation policy and specific claims, including at internal review; and (b) fees for representing MCRS at: (i) the Administrative Appeals Tribunal, (ii) the Federal Court, and (iii) the High Court.

(2) (a) How many counsel were hired in total; and (b) how many were Queen's Counsel.

(3) (a) Which legal firms are on the panel for MCRS; and (b) for the 2002-03 financial year, what sum of money had been paid to each firm as at 30 June 2003.

(4) What are the details, as sought in parts (1) to (3) of this question, for counsel hired for cases under the Veterans' Entitlement Act 1986.


Senator Hill (Minister for Defence) —The Minister for Veterans' Affairs has provided the following answer to the honourable senator's question.

(1) Expenditure for 2000-01 is not available due to the non-availability of data from a superseded Department of Defence finance administration system.

(a) Costs regarding legal advice in the area of compensation policy were not available as they are rarely, if ever, incurred. Any advice in this respect is usually sought from within the legal areas of the Department or Comcare rather than externally.

Internal Review

2001-02

$1,072,227

2002-03

$969,028

(b)

2001-02

(i) $3,365,455

(ii) $ 113,598

(iii) Nil

2002-03

(i) $4,243,245

(ii) $ 145,857

(iii) Nil

(2) (a) and (b) While it is not possible to provide an overall figure of the number of counsel instructed to appear - due to the fact that the MCRS's payment system does not allow the identification of individual counsel acting on the Department's behalf - a total of four Queen's Counsel were instructed.

(3) (a) and (b) The MCRS has five law firms that are approached on a regular basis for advice in the area of the review of decisions. The names and total amounts paid to each are:

Australian Government Solicitor (AGS)

$1,426,763

Phillips Fox Lawyers

$1,350,893

Blake Dawson Waldron

$491,047

Dibbs Barker Gosling

$629,502

Sparke Helmore Solicitors

$1,290,356

(4) In relation to legal costs incurred by the Department on behalf of the Repatriation Commission for the handling of matters under the Veterans' Entitlements Act 1986 (VEA) for the financial years 2000-01, 2001-02 and 2002-03, the following details are provided.

The specific information sought in the honourable senator's question is either not available or does not apply to matters under the VEA because of key difference between the two schemes. Examples of differences include:

there is no internal review process under the VEA that can be compared with the internal review process contained in section 62 of the Safety, Rehabilitation and Compensation Act 1988 in which legal costs can be incurred;

The majority of matters involving the review of decisions under the VEA by the Administrative Appeals Tribunal (AAT) are handled by APS employees of the Department and do not involve the use of external legal service providers.

However, the following aggregated information is available in response to the specific questions insofar as they relate to the VEA:

2000-01 financial year

AGS and counsel

$1,356,758.60

Repatriation Medical Authority (RMA) & Specialist Medical Review Council (SMRC) to AGS

$82,642.38

Barker Gosling

$162,374.00

(total cost for the legal costs pilot for AAT work)

2001-02 financial year

AGS and counsel

$1,315,262.30

RMA & SMRC to AGS

$90,687.73

2002-03 financial year

AGS and counsel

$2,516,790.60

RMA & SMRC to AGS

$95,028.73

The number of counsel instructed by solicitors acting for the Department and the Repatriation Commission during the financial years 2000-01 to 2002-03 are six Senior Counsel (including Queens Counsel) and twenty-two Junior Counsel. In some matters, the AGS also appeared as counsel.

In relation to legal challenges to the review of decisions relating to pensions, benefits and other allowances under the VEA, only two law firms (AGS and Barker Gosling) were used during the financial years 2000-01 to 2002-03. The Melbourne office of Barker Gosling (as it was then known) took part in a legal costs pilot project, and conducted ten matters before the AAT. This pilot commenced in late 1999 and concluded in early 2001. On all other matters relating to the review of pensions, benefits and other allowances under the VEA, AGS has been instructed to provide the external legal services. The amount paid to AGS (which also includes disbursements such as counsel fees) is set out above.