Proposed reforms would ‘undermine’ justice system

Proposed new business structures for the legal profession would "radically undermine" the provision of justice in Ireland, the chairman of the Bar Council has warned.

As part of a major overhaul of legal services, the Government is proposing a number of changes in the way barristers and solicitors operate, including the creation of barrister/solicitor partnerships and multidisciplinary practices.

Minister for Justice Alan Shatter has said the new structures will create new opportunities for young lawyers and improve services for the public.

'Growing concern'
However, speaking at the Bar Council's chairman's dinner last night, David Nolan SC said there was "growing concern" over the proposals and warned that international experience showed there could be unintended consequences in departing from the current "sole-trader" model.

“It is also of major concern that research has not been undertaken into the impact that these structures could have here in a small jurisdiction,” he said.

Mr Nolan said the American Bar Association had "emphatically rejected" these structures. New Zealand did not allow multidisciplinary partnerships, while opinion in Europe was divided.

“In a corporate structure, a barrister would become answerable to many others, including shareholders, other partners, boards of management, high-paying clients, publicity and so on,” he said.

“The real risk is that the best interest of the client and the court will no longer be the priority. By creating such corporate structures, the Government has the potential to undermine a system that has served the administration very well, holding both Government and large institutions to account.”

The Legal Services Regulation Bill, which contains the proposals, was first published in 2011 and is due to go to committee stage in the Oireachtas next month.

Mr Nolan said the Bar Council was in favour of an independent regulator for the profession but warned that the regulatory structure proposed in the Bill would, according to an impact assessment carried out by the council, cost €5 million to €7 million to establish and €5 million to €7 million per year to maintain.

'Tipping point'
He said these extra regulatory costs could well be the "tipping point" that heralds the departure of more newly qualified barristers. They could also preclude new entrants and could lead to higher costs for users of legal services.

Mr Nolan added: “Such fundamental and far-reaching reforms of the kind proposed in the Bill should be properly evaluated and shown to be in the public interest prior to their enactment. This has not happened to date.”