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If you've been here long enough to make a claim on the RAV, you've been here long enough to negotiate a ten minute conversation with a RAV advisor in the local language.
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I have no problem with RAV officers asking to speak in the local language. At the end of the day, they are trying to make people's lives more difficult to encourage them to find jobs quickly.
I just disagree with the reason being given as fear of litigation or reputation.