Community and Financial Hardship
“Working Better Together”
Address by Bevan Warner
Managing Director, Victoria Legal Aid
19 August 2008
Lionel Murphy Centre
Let me begin by acknowledging the traditional custodians of the land upon which we meet the Wurundjeri people of the Kulin nation and to pay my respect to their elders both past and present.
Welcome to today’s Community and Financial Hardship Forum sponsored by the Victorian Legal Assistance Forum - a group established last year comprising local legal assistance providers - to look at ways to tackle problems together. VLA is a foundation member of VLAF and I am pleased to be able to say a few introductory words.
This past twelve months has been marked by two major events: the tragedy of the Victorian Bushfires and the developing impact of the Global Financial Crisis. Both events have impacted the Victorian community in diverse ways. The financial crisis has also impacted agencies I see represented here today - who are managing to support families cope with a range of losses or attempting to help people avert further losses - whether that be the loss of the family home, their job, their mental, financial or physical health.
The effects of the economic downturn, however severe in magnitude, will linger for many people and requires a coordinated effort from Commonwealth, State and community agencies to minimise the impacts on the most vulnerable amongst us. We have seen through past cycles disproportionate impacts on older people who lose their job and career with many ending up as long term unemployed.
We have also seen through past cycles disproportionate impacts on vulnerable groups that we recognise as our common clients. So the problem we confront is in many respects a known quantity – but what of the solutions?
VLA doesn’t profess to have all the answers, however I am able to affirm that VLA alongside National Legal Aid and partner agencies working with VLAF - is committed to doing its part.
So what of the evidence and where does it guide us?
In asking these questions, I am mindful of the Commonwealth Treasury’s Wellbeing Framework that seeks to improve the well being of the Australian people against a policy paradigm that considers 5 elements, one of which is “the opportunity and freedom that allows individuals to lead lives of real value”[1]. In my view, this is a key aspiration of consumer advocacy. The Commonwealth’s Issues paper “Consumer Voices”[2] released in May crystallises the need for advocacy on consumer policy to be aware of the vulnerabilities of particular groups and to be able to identify effective tools necessary to address consumer detriment, particularly affecting those with special disadvantage and/ or vulnerability.
VLA’s “part” is informed and guided by its enabling legislation, specifically, section 6 (2) (a) of the Legal Aid Act 1978 that provides encouragement to “work in co-operation with a government department or body concerned with social service or social welfare, arrange measures and take steps that may be conducive to meeting the need for legal aid in the community”.
I do not see VLA’s role as being separate to, or distinct from the efforts of our partners in the social, health, community services or voluntary sector. It is clear from the international research[3] that economic distress has social, health and legal implications on our community.
In March this year, VLA sponsored UK Professor, Pascoe Pleasence to meet with a range of senior policy advisors and decision makers in Victoria and Canberra on how legal assistance programs can work alongside and within health, job find and other community based services utilising innovative outreach to ensure the service is taken to or finds the client in need. The health and social implications of being jobless on homelessness, on family cohesion and safety, on health and well being is well documented. The research on impediments to seeking help, the barriers to engaging hard to reach families is derived from research including the local Victorian joint research project undertaken by Swinburne University and Hanover Welfare Services.[4] The legal needs of people who are jobless, who are facing economic hardship are now emerging as a key government consideration in planning the social safety net of community supports and funded programs.
The recent appointment of my colleague Alan Kirkland, CEO of Legal Aid NSW to the Prime Minister’s Independent Council on Homelessness is a positive step and brings welcome recognition of the Commonwealth government’s understanding and commitment to positive and preventative legal interventions, as a means of delivering social justice and fostering social inclusion.
Effective interventions need evidenced based research, policy advice and practice wisdom to ensure the right balance is struck in programs that lack compulsion and which must allow clients to self determine the resolution of their own legal problem or difficulties. There is an old saying about leading a horse to water……… I would like to ensure that practical solutions to everyday problems were not prevented through a lack of access to “the water” and access to appropriate services was available to all people who need it, when they need it. This means solving client referrals, co-location of services, innovative outreach and marketing the value of legal interventions as an essential part of the social safety net – not some costly, litigious, lawyer branded activity that the community and funders should avoid.
Diverse forums such as these today help us to keep in touch with each other, make new connections, to get the issues out on the table and hopefully strike a better balance. When I look at what programs are needed, or what resources are required or where we need better advice – I look to forums like these.
In May this year, Consumer Action Legal Centre, Consumer Credit NSW, NSW Legal Aid and VLA invited agencies representing social, community, legal, and regulatory agencies to a Roundtable discussion.
I see around the room this morning some of the participants here today and I thank you for your continued interest and commitment.
In all, senior officers from over 32 agencies including the Financial Ombudsman, the Credit Ombudsman, senior representatives from Centrelink, ASIC, a representative from the Australian Council of Social Services (ACOSS), National PEAK agencies representing financial counsellors experienced lawyers in consumer law, Job Network, and others met here in Melbourne to look at the extent of the impact of the global financial crisis, government’s response and what remained to be done.
I am sure all of you in this room are well acquainted with the economic and social implications – short and long term implications of job loss and poverty. A weekend paper has reported on the widening belt of our outer suburban families likely to be affected by mortgage stress if the Reserve Bank does increase home interest rates as predicted.
As you know, for our agencies and services: the issues and challenges remain the same. How can agencies such as ours - with the specialised services that we each provide – be directed and targetted to those “likely to be affected” - before they face financial hardship or financial distress and before that harm becomes irreparable financial harm. How can we prepare our staff, our resources and develop our capabilities to fully implement what the research and government policy warnings tell us - that preventative action is needed?
From the May meeting, it was apparent that:
· There was a need for an immediate response (irrespective of the type of agency and what their specialism was)
· A number of larger agencies were working well together at the national level but there a need for greater local and state information flow (such as forums like these facilitate)
· Strategies were needed to target those most vulnerable or those who were likely to be vulnerable were needed. There is a need for inventive and creative ways to reach people.
Since May, the Roundtable discussion has already produced some tangible results:
Firstly, it garnered the commitment and attention of National Legal Aid. NLA had recently agreed to establish a permanent standing committee or consumer law working group to ensure regular dialogue and cooperative effort on consumer issues of national importance.
This group came together to critically evaluate the legal implications of the new credit laws proposed by the Federal Government. The resultant submission Public Exposure of National Consumer Credit Protection Bill 2009 can be downloaded at http://www.nla.aust.net.au/category.php?id=15
Secondly, National Legal Aid co-opted experienced lawyers from around Australia to draft a substantial submission to the Senate Inquiry on Unfair Terms Legislation and NLA representatives will appear before the Senate Economic Legislation Committee this Friday to give evidence about insurance contracts.
Thirdly, the establishment of a working group comprising representative community legal centres and National Legal Aid’s consumer law working group will hold its first meeting on 22 September to consider national and state initiatives to reduce the pressure faced by families and individuals under stress.
This broader participation will develop the ideas discussed at the May meeting on how major consumer advocacy providers can share information and resources quickly and efficiently. Some of the ideas that will be explored will be how for example, ASIC and other key information and advocacy providers can share resources such as:
· Telephone/ advice line at a national and state level
· Developing information sets and distributing to groups of affected people at the time they need it most.
· Specialist information and technical knowledge
Through systemic advocacy and sharing of information, duplication will be reduced and service responses enhanced.
At the state and local level, I note the high regard and collaborative relationships between the Consumer Action Law Centre and Consumer Affairs Victoria evident in the establishment of their new service to help affected consumers. At the time of the May roundtable, CALC was just starting to build the service for a June opening. Today we will hear more about their work.
Closer to home, like most of you, VLA has seen an increase in telephone queries that relate to employment, debt, mortgages and loans, consumer issues, housing, bankruptcy. Actually, 13,971 calls related to financial hardship in 08/09 out of a total of more than 80,000 calls.
We realise that we need to position our legal interventions alongside community sector supports and to this end I am pleased to advise that VLA was recently accepted by the Victorian Council of Social Services as a corporate member to keep in touch with not only the issues, but the policy and operational responses to emerging community problems.
Other initiatives include the creation of a new civil law directorate with elevated status to oversee VLA’s renewed and targeted commitment to developing relationships with the community legal and social services sector to improve our collective responses to vulnerable people, including on debt matters. Robyn Mills is here today as the acting Director and will speak to you further about the work in her area. I can say that the new civil law directorate will continue to develop strong linkages with local community groups and agencies in the field working with affected groups. We are grateful to experienced legal practitioners such as Denis Nelthorpe who is currently looking at a joint venture with the Consumer Action Law Centre and the Financial and Consumer Rights Council – to bring an Information Roadshow to local communities affected by the economic downturn. We are also tremendously proud of our staff capabilities having people like Virginia Noonan who was one of the earliest trainers for the financial counselling sector in the early 1990s and Jenny Lawton who specialised as a financial counsellor for many years before combining her interest in social justice with a career in the law.
Clearly, the success of our collective response is linked to our ability to successfully engage with each other in helping our common clients.
This means continued sharing of information and strategic placement of ourselves and our resources into the community where the community needs us such as nearer doctors’ clinics, community health centres, Centrelink offices and job find agencies. It also means providing, online information and telephone support staff that supports warm referrals by staff – so that clients don’t have to take their chances or maybe not act when we know it is in their interests – to get advice and to act early!
VLA is open to supporting initiatives that :
· Train staff on consumer law or offer basic consumer credit unit as part of their training program as well as training on the new consumer credit laws.
· Offer opportunities for co-location, secondments or staff exchanges which would enable financial counsellors and lawyers to work together to assist clients.
· Participation in mobile clinics to reach socially isolated members of the community who have no access to transport, sometimes mental health issues and other health problems. E.g. rural farmers and the elderly.
I am sure there will be ideas that will be emerging today that will add to this list. I am open to your ideas and your input.
In closing, I would like to thank you for letting me share our 3 month report card since the last Roundtable discussion and to enlist your support for its practical actions and targeted solutions. A lot has happened at the national level to highlight issues surrounding the transition towards new credit legislation and the Unfair Terms Legislation. I will allow Robyn Mills and her team to provide greater detail on their hard work over the past three months.