A REFORM of B.C.’s legal! aid system is required because British Columbians can no longer afford the existing sys- tem, according to the chair of the Legal Services Society (LSS) Board of Directors. Margaret Cissell said there has been a 700% increase in money paid to contract lawyers over the past 10 years. “In fiscal ‘93/°94 we paid con- tract lawyers $75.6 million dol- lars,” said Cissell. “That accounted for 75% of our total expenditures last year. And unfortunately we know from our own consultations, as well as government reviews, - that although we are paying out a lot of money we are not delivering the full service, or an equal level of ‘ service, to the poor in B.C.” Paying off debt often best tax strategy PAYING OFF your debts is as effective as any sophisticated tax and investment strategy. A. certified general: accountant - (CGA) explains how income tax ? relates to debt reduction. ~ “The concept is simple,” she said, “Paying off a 10% debt is like ' earning 10%: after tax; this applies - whatever the rate. Finding any other - ‘no-risk: Way to earn a guaranteed 210% ‘after tax‘is far from easy.” : . For example, if you eliminate a ©), $1,000 debt on. which you are pay- ing 10%: interest; “one year from now you will have an extra $109 in . + your pocket, compared with carry- - ing that debt for another year and _ ‘ paying $100 in interest. _ > Why is that so effective? . If you invested $1,000 and want-’ - ‘ed’ to end up with $100 in your’ pocket.a year later, you’d have to "eam perhaps 17% ‘interest.You’d . “\ declare the $170 interest; pay 41% ‘taxi your taxable’ income is between . about . $30,000. and $60,000) and that would leave you’ *- with $100 after tax. . : “In this-case, paying off a 10% ‘>. Joan is the same as investing at 17% “s before. tax,” the’ CGA explained. ‘~~ “You cannot find any risk-free. “.. investments yielding 17%.”- “. Paying off an outstanding credit card: balance —.which ‘could be ” - costing you as much as 32.9% a | year —'is the same as making an investment earning 56% interest before tax if you are ir the 41% tax bracket. . :. There is no possible way to eam that sort of interest, short of loan ‘sharking. If you are in the lowest tax -bracket of about 27% (that is, your. taxable income is below about ‘$30,000), paying off those credit cards is still worthwhile. How else can you eam’ 45% interest before tax? If you are (or. become) a suc- cessful investor, only ‘then should you: consider other investments — instead of paying off debt. :. . ‘The mile, said the CGA, is you: + must earn a higher, after-tax rate of "return than the interest rate on your debt. : oe KIDS FOLLOW THE WATER SAFETY RULES “ poyvour ‘ails The Canadian Red Cross Society 66... in spite of recent withdrawal of service by some members ... over 2,500 legal aid lawyers remain available to take cases. 99 Cissell said in a press release that in spite of recent withdrawal of service by some members of the Association of Legal Aid Lawyers (ALL), over 2,500 legal aid lawyers remain available to take cases. The reform program -—~ a restructuring of the mixed model currently in use — was announced in February of this year. The reforms are based on information gathered during a 10-month con- sultation with 55 communities in B.C., four government reviews and on-going discussions with the legal profession. The reform was unanimously approved by the LSS Board of Directors. : Highlights ‘o/ the = reform include increused use of staff lawyers and paralegals, a reorgani- zation of the department which manages appeals of Court deci- sions, establishing a balance between poverty, family, criminal and immigration law, as well as public education, and ensuring access regardless of geography, culture and language. (Ta¥LORMOTIVE®” TRANSMISSION SPECIALISTS ATR.A. - B.C.A.A. - A.R.A. CERTIFIED CENTRE | AUTOMATIC & STD. 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