Defence Annual Report 2004-05 :: Appendices

Appendices > Legal Expenses

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Legal Expenses

Defence Legal was established as a separate division within the Corporate Services and Infrastructure Group in July 2004. The division provides a broad spectrum of legal services. Uniformed and civilian lawyers provide both legal and legal policy advice and legal training covering operations and international law, the development of Defence policies and legislative amendments, advice in relation to Defence-sponsored international agreements and arrangements, military justice, freedom of information and historical records access matters, litigation and administrative law. In addition to headquarters-based staff located in Canberra, many military legal officers remain outposted to provide direct legal support to ADF commanders and other Defence regional elements.

Consolidation of the new division has involved internal restructuring, a review of internal business processes, and the establishment of new legal directorates for the management of external legal services and special financial claims arising from defective administration.

Expenditure on internal and external legal services in 2003-04 and 2004-05 is shown in Tables 7.1, 7.2 and 7.3. Internal expenses include salaries for military and civilian staff, divisional operating costs and military justice reimbursements. External expenses are professional fees, disbursements and other legal expenses. Total expenditure on legal services declined by $3.9m, or 6.4 per cent, in 2004-05 reflecting a decline in expenditure on external legal services.

Table 7.1 Expenditure on Internal and External Legal Services in 2003-04 and 2004-05
Type of legal expenditure	2003-04 ($m)	2004-05 ($m)
Internal	22.3	24.1
External	38.7	33.0
Total	61.0	57.1

Table 7.2 Cost Breakdown of Internal Legal Expenses
Items	2003-04 ($m)	2004-05 ($m)
Salaries for military lawyers	10.3	10.5
Salaries for civilian staff	6.6	7.9
ADF legal Reserve officers	2.8	2.7
Operating costs of the Division	2.3	2.7
Military justice reimbursements	0.4	0.3
Total⁽¹⁾	22.3	24.1

Note

Figures may not add due to rounding.

Table 7.3 Cost Breakdown of External Legal Expenses
Items	2003-04 ($m)	2004-05 ($m)
Professional fees - Defence legal panel	22.0	24.1
Professional fees - Attorney General's	1.6	1.9
Disbursements	5.0	4.6
Legal expenses - other	10.1	2.4
Total	38.7	33.0

Initiatives

Initiatives are being implemented to improve the management and accountability of Defence's expenditure on external legal services and to enhance the usefulness of legal advice. The new Defence Legal Services Panel arrangements will provide the basis for improved management and control of external legal services. The arrangements will involve multiple panels (each with up to ten panellists), covering 16 areas of expertise, for example environmental law, employment law, and commercial law. In May 2005, 25 shortlisted organisations were asked to respond to a select request for tender for the provision of the required services. Twenty responses have been received and are being evaluated with new standing offers expected to be in place in late 2005. The standing offers will be in place for at least three years with potential for extension. Notwithstanding the creation of the panel, the arrangements will be non-exclusive, so that normal tender processes can be used if better value for money can be provided outside of the panel's standing offers.

Defence is establishing a framework to monitor the performance of external legal providers, including a new database, a procedures manual and an evaluation mechanism. Changes are also being made to the financial management system to improve the accuracy and reporting of legal services expenditure. Legal advice obtained externally will be captured on a centrally-managed database that will facilitate the maintenance of up-to-date advice and enable an effective search capability.

Defence Legal has also started the request for tender process for a provider of tertiary legal education services for military legal officers. The existing contract will expire at the end of 2005. Maintaining high standards of tertiary education for legal officers continues to be a high priority particularly because of the complex environments in which the ADF continue to operate.