Offender Levy collects nearly double projection in first year

The $50 Offender Levy has been almost twice as successful as the Government’s most optimistic estimates.

Justice Minister Simon Power today announced that the levy collected $3.7 million in its first year, nearly double its forecast of $2 million.

Since July last year, all convicted offenders have been required to pay the levy at the time of sentencing, regardless of the crime they commit. The levy is collected after reparation and before fines, and is in addition to any sentence or court order.

“As a result of the levy being collected more quickly than anticipated, we have been able to roll out an additional five services to victims of serious crime,” Mr Power said.

The four-year collection target is expected to be $15.9 million.

The levy is used to fund 13 entitlements and services for victims of serious crime, including:

A court attendance grant of $100 per day for victims of sexual violence and their unpaid support person.
Up to 30 hours of trauma counselling for family members of a victim killed as a result of a criminal act (e.g.: careless use of a firearm or dangerous driving causing death).
A discretionary grant of up to $3,000 for family members of a victim killed as a result of a criminal act.
An expanded travel assistance scheme for victims of serious crime and an unpaid support person for justice sector-related travel of up to $1,000 not already covered by the scheme.
A means-tested emergency grant for economically disadvantaged victims of serious crime of up to $2,000.
Four paid homicide support co-ordinators to work with Victim Support's volunteer network.
A discretionary grant of $5,000 for families of homicide victims.
A court service for victims of sexual violence which will give them access to an adviser who is trained in the dynamics of sexual violence cases and victims' needs.
A grant of $500 towards expenses incurred as a result of sexual violence, such as replacing items of clothing collected for forensic evidence.
Travel, accommodation, and childcare assistance for victims attending court proceedings ($3,000), and Parole Board hearings ($1,500).
A High Court attendance grant of $124 per person per day for up to five adult members of a homicide victim's family.
A funeral grant of up to $4,211 to families of homicide victims, on top of the $5,789 available through ACC (up to $10,000 in total).
New information resources, including a DVD, pamphlets and a redesigned victims' website www.victimsinfo.govt.nz.

“Labour has repeatedly called this levy a gimmick, even though it is delivering more for victims of crime than ever before.

“The figures speak for themselves. This scheme is proving to be a hugely successful boost for victims of crime.”

Mr Power said the Offender Levy-funded services are an important part of the Government’s drive to put victims at the centre of the criminal justice system.

“Before the end of the parliamentary term I intend to further that by announcing proposals around alternative trial processes for child witnesses, and introducing the Victims of Crime Reform Bill to Parliament.”

Mr Power said the Courts and Criminal Matters Bill, which was passed earlier this month, gives priority to the payment of reparation and the Offender Levy to victims and will ensure that offenders who refuse to pay will be held to account.

Questions and Answers

How did the Ministry of Justice estimate the collection rate for the levy?

The Ministry projected a 68% collection rate within four years of imposition, compared to an 88% collection rate for fines after four years. The difference in the collection rate is because, unlike fines, the levy is imposed on a group of people who are more likely to receive non-monetary sentences, are less likely to pay voluntarily, less likely to have an income source to which the levy can be obtained, and highly likely to have a low attitude to compliance generally. The Ministry estimated that 42% of offenders would pay the levy in the first year, when in fact 66% did.

What will be the net benefit for victims over the next four years?

The Offender Levy was originally expected to generate $13.6 million for victims of crime initiatives over its first four years. However, with the better than expected collection rates the Ministry now expects to collect $15.9 million in the first four years.

How much levy funding, on top of the $3.7 million collected, is outstanding?

$590,000 is under payment arrangement. $2.2 million is still to be paid – that includes offenders within the 28 days to pay, those paying reparation first, and those in prison.

How much does it cost to collect?

The collection cost in 2010/11 was $1.1 million. It is estimated to cost $1.3 million in 2011/12 and out years.