Debates of October 18, 2004 (day 22)

Thank you, Mr. Speaker. Mr. Speaker, my written question is to the Minister of Health and Social Services. In light of the recent opinions that drug and alcohol is the main issue for the potential pipeline development in the North, can the Minister provide the following answers for the Sahtu region:

What is the average cost to have a client participate in an alcohol and drug treatment program in Hay River?

How many clients in the past year, 2003-2004, have participated and completed the alcohol and drug treatment program in the North?

How many clients were referred to southern treatment programs in 2003-2004?

What are the costs for southern treatment programs?

What are the costs of a mobile treatment program in the NWT?

How many family treatment programs are there in the NWT that deal with alcohol and drug treatment programs specifically?

How many children between the ages of 14 and 24 received alcohol and drug treatment in the Sahtu?

Thank you.

Mr. Speaker, I wish to table the following document entitled NWT Council of Sport and Recreation Partners Implementation Plan, October 2004. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document entitled Status of Women Council of the NWT 2003-2004 Annual Report. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Wednesday, October 20, 2004, I will move that Bill 15, Tlicho Community Services Agency Act, be read for the first time. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Wednesday, October 20, 2004, I will move that Bill 16, Northwest Territories Business Development and Investment Corporation Act, be read for the first time. Thank you, Mr. Speaker.

Thank you. I would like to call Committee of the Whole to order. We have Committee Report 7-15(3), Minister’s Statement 48-15(3), Minister's Statement 49-15(3), Bill 7, Bill 8, Bill 10, and Bill 12. What is the wish of the committee? Mr. Menicoche.

Mr. Chair, your committee wishes to consider Bill 7, Bill 8, and Bill 12. Thank you.

Thank you, Mr. Menicoche. Agreed?

Agreed.

I guess we will take a short, 15-minute recess. Thank you.

---SHORT RECESS

Thank you. I would like to call Committee of the Whole to order. We are on Bill 7. I would like to call Minister Charles Dent for his opening remarks.

Thank you, Mr. Chairman. Mr. Chairman, Bill 7 amends the Legal Profession Act to enable law firms to deal with trust monies that lie unclaimed in lawyers’ trust accounts. This bill was developed at the request of, and in close consultation with, the Law Society of the Northwest Territories.

The legal professional is subject to very stringent accounting rules and obligations relating to trust funds. Literally every penny must be accounted for. Occasionally money is left unclaimed in a trust account, having been forgotten by a client or left unclaimed for other reasons. Examples include retainer money left over in a trust account after services are complete, or a reimbursement of monies that had previously been paid into court. Law firms try to track down the rightful owners of the funds, but sometimes it is not possible to find an owner because he or she has moved, has had a name change, or has died.

As the Legal Profession Act does not make provision for unclaimed trust monies, law firms must retain them indefinitely. This is expensive and complicates accounting. It also poses difficulties when a law firm dissolves or when a sole practitioner ceases the private practice of law, the firm or sole practitioner must indefinitely maintain a trust account holding the unclaimed funds. At present, law firms in the Northwest Territories hold approximately $23,000 in unclaimed funds. The largest amount is close to $2,000, but most amounts are very small, ranging from a few cents up to $10.

This bill will allow law firms to pay over to the Law Society of the Northwest Territories trust money that they have been unable to pay out for at least two years because those entitled to the funds cannot be located. The Law Society will then hold the transferred money for five years. During that period, anyone entitled to claim the funds from the law firm may claim them from the Law Society. After the five-year period, the money held by the Law Society under this program will be transferred to the Northwest Territories Law Foundation and may be used to further the objects of the foundation.

In addition, this bill makes a number of minor amendments of a miscellaneous nature to the Legal Profession Act.

I will be pleased to answer any questions the committee may have. Thank you.

Thank you, Mr. Minister, for your opening remarks. I would like to ask the committee chair if she would like to provide comments. Ms. Lee.

Yes, Mr. Chairman, we do have a comment to offer from the committee on Bill 7.

Mr. Chairman, Bill 7 amends the Legal Profession Act to enable law firms to enable trust monies that lie unclaimed in lawyers’ trust accounts. This bill was developed…Sorry, I am reading the Minister’s statement.

---Laughter

I was supposed to read the pink sheet; sorry.

Mr. Chairman, the Standing Committee on Social Programs conducted its public review of Bill 7, An Act to Amend the Legal Profession Act, on October 12, 2004. The committee would like to thank the NWT Law Society for its presentation, and the Minister and his staff for presenting the bill.

The main purpose of this bill is to create a system allowing law firms to transfer unattributable trust monies to the NWT Law Society, which will then take responsibility for administering them. People who are entitled to trust money will still be able to claim it back while it is held by the Law Society.

After a period of five years, the Law Society will transfer any still unclaimed money to the NWT Law Foundation to further the objectives of the foundation. The committee was advised that an estimated $23,000 is currently unclaimed in trust accounts held by law firms in the NWT. The bill will allow the Law Society to charge an administrative fee on any money transferred to the Law Foundation.

The amount of the fee is not set out in the bill. Rather, the Law Society will set the fee in its own rules. Representatives of the Law Society advised that they expect the fee will be on a percentage basis and that the final amount will be decided after consultation at their next annual general meeting. As an example, they indicated that the administrative fee they charge for administering the insurance plan is five percent per year.

The committee asked the Minister why people will not be entitled to interest on any trust money they claim from the NWT Law Society. The Minister advised that this is consistent with current practice, which is that no interest is payable to clients on trust accounts with law firms.

Members also asked for an explanation of why people will only have five years to reclaim trust money from the Law Society, as members are aware that the period is longer in some of their jurisdictions. The Minister advised that the legislation follows the Alberta model.

Finally, the committee would encourage the Law Society and the Department of Justice to ensure the general public and especially people in small communities who may not have Internet access, are made aware of the change in legislation and know where to go to reclaim trust money that might be owed to them.

This concludes the committee’s opening comments on Bill 7. Individual members may have additional questions or comments as we proceed. Following the committee’s review, a motion was carried to report Bill 7, An Act to Amend the Legal Profession Act, to the Assembly as ready for Committee of the Whole. Thank you, Mr. Chairman.

Thank you, Ms. Lee, for your committee’s comments. I would like to ask the Minister if he would like to bring in witnesses.

Yes, Mr. Chairman, please.

Thank you, Mr. Minister. Does the committee agree?

Agreed.

Proceed, Mr. Minister, and please introduce your witnesses, for the record.

Thank you, Mr. Chairman. From the Department of Justice, I have Mr. Mark Aitken with me.

Thank you. I will now go to general comments. Do members have any general comments on Bill 7?

Detail.

Okay, we will do a clause-by-clause review of the bill.

Agreed.

Agreed. Bill 7, An Act to Amend the Legal Profession Act, clause 1.

Agreed.

Clause 2.

Agreed.

Clause 3.

Agreed.

Clause 4.

Agreed.

Clause 5.

Agreed.

Clause 6.

Agreed.

Clause 7.

Agreed.

Clause 8.

Agreed.

Clause 9.

Agreed.

Clause 10.

Agreed.

Clause 11.