For the purposes of section 40 of the Act, interest is payable any time on or after 22 November 2018 at the rate that, at that time, is the default public sector discount rate published by the Treasury as a percentage.

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 22 November 2018, replace regulation 14 of the Legal Services Regulations 2011 (the principal regulations).

Regulation 14 of the principal regulations prescribes the interest rate on legal aid debts. The interest rate currently prescribed is 8% per annum, which no longer reflects the default public sector discount rate as intended.

New regulation 14 replaces the current interest rate with an express reference to the default public sector discount rate. This will in future enable the interest rate to align with the latter without the need for legislative amendment.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 25 October 2018.

These regulations are administered by the Ministry of Justice.

Legal Services Amendment Regulations 2018