Government planning changes to long-delayed legal services Bill

Government officials are weighing up changes to proposed new business structures for lawyers – one of the most controversial parts of a long-delayed Bill to overhaul legal services.

The Fine Gael-Labour coalition has come under pressure from the EU-International Monetary Fund troika over the slow progress of the Legal Services Regulation Bill, designed to reduce costs in the sector. The draft law was published in October 2011 amid strong criticism from lawyers’ groups and has yet to be enacted.

Minister for Justice Alan Shatter tabled amendments to four sections of the Bill in July. These reduced ministerial involvement in the system of appointments to a proposed regulatory authority for the legal profession, addressing concerns about the independence of the new body.

Action by Christmas
He has pledged to publish amendments on the remaining parts of the Bill before Christmas, and attention is focusing on changing how barristers and solicitors work by allowing for barrister partnerships, barrister/solicitor partnerships and multidisciplinary practices. Mr Shatter says these structures would create opportunities for unemployed lawyers.

However, the Bar Council, which represents barristers, argues that departing from the sole trader model would "radically undermine" justice.

Officials from the Department of Justice and the Attorney General’s office are preparing amendments to part seven of the Bill, which deals with these alternative structures, including multidisciplinary practices in which lawyers operate alongside other professionals.

London example
Mr Shatter recently met representatives of the UK Legal Services Board and the Solicitors Regulation Authority in London, where he was briefed on alternative business structures in England and Wales. He visited a new legal business model operating in the city.

Officials are also working on changes to part five of the Bill, which deal with new independent complaints and disciplinary procedures for lawyers. These will put greater emphasis on achieving informal solutions to consumer-type complaints.

A number of technical amendments will also be made to part nine, which relates to the new legal costs regime.

The Department of Justice said the Bill remained a priority. It said the legislation was delayed because resources had to be diverted to the Personal Insolvency Bill, another troika programme objective. The department said the amendments and a regulatory impact analysis would be published “as soon as possible” before Christmas.