Wednesday, June 19, 2024

Australian state proposes student debt relief for lawyers willing to practice in rural places

"Bold new plan to get more lawyers to go to the bush," is the headline for this radio story by the Australian Broadcasting Corporation last week.  That "bold" plan involves helping lawyers pay their student loans if they're practicing in a rural, remote or regional area of Australia.  

Here's the promotional blurb: 

There's a dire shortage of lawyers in regional Australia and it's having devastating impacts on people’s everyday lives. One group is proposing a bold plan to try and entice lawyers to ditch the city and go bush. Brett McGrath is President of the Law Society of New South Wales and he tells ABC Newsradio’s Tom Oriti about how waiving student debt could make a big difference.
Here's a compelling excerpt from the interview, after the interviewee, Brett McGrath, notes the disparity between what solicitors can earn in the city and in the country: 
We have some solicitors in rural and regional New South Wales who are paying admin assistants more than they're paying themselves because they're trying to meet overheads week to week, and we are the most heavily regulated profession in the country.  We have ethical obligations.  We have reporting requirements.  And most [solicitors] are employing people.  They're employers so they have to go through workplace employment legislation.  They have all these obligations so they're really struggling to make  ends meet. ... 

I'm the President of the Law Society.  It took me seven years working full time in southwest Sydney and working as a lecturer at a university--so working a second job--it took me seven years to pay off A$40,000 in Hecs.  So you can imagine... A$70,000 is the average now... so with cost of living pressures and rental and all those sort of things... it's a big problem and that's why we think this is a solution that can address that need, particularly for rural and regional areas and make it really attractive for solicitors to come and set their practices up.  
Interviewer:  
If you're a lawyer who will go to the regions to help ease that shortage you'll get your HECS-help fees waived, and if you've already made contributions, they're refunded.  Is that right? 
McGrath:
So, it has its anchor point from the Commonwealth's own review into legal assistance which called for having solicitors who moved to rural, regional and remote areas as a baseline having 45% of their work legal aid work or they work for a Community Legal Centre ... We say that should be a baseline.  We think at the Law Society of New South Wales that should be taken to the next level because of what we're seeing on the ground in rural and regional areas of New South Wales but also across the country that it should be extended to anyone who wants to move to set their practice up and start their careers in regional areas should have their hex waived.  
There are similar schemes to attract teachers, to attract doctors and nurses to regional areas.... We see law and access to justice as a critical part of our infrastructure and services we provide.  
Lismore (New South Wales) is a great example where in disaster zones people are in trouble ... they reach out.  Who do they turn to?  They turn to their solicitor when they're in need. 
Interviewer: 
Have you put that [expensive proposal for debt relief] to the government?  Have you had any response? 
McGrath:  
We've suggested that it'll cost about A$6 million in the first year, and that's ... for the base program.  The first port of call is to have those with 45% of their work in legal aid and in Community Legal Centres so that's about A$6 million and we've put that to the federal government and the Law Council of Australia has ... put that forward as a proposal to the commonwealth.  
Interviewer:  
Any Response?  
McGrath:  
We're waiting on a response.  

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