Legal services: Government caves in

A deal of self-regulation and protectionism will remain within the profession

The milk-and-watery terms of the Legal Services Regulation Bill represent a triumph for the lobbying powers of the Bar Council and the Law Society and a failure of nerve by Government. A need for reforms to promote competition, reduce costs and improve accountability has been recognised and talked about by successive governments. The Competition Authority advocated major benefits for consumers through a more flexible, responsive and transparent service while the IMF-EU troika placed legal reforms at the top of its "to do" list. Antiquated legal structures and procedures were seen as stumbling blocks to economic growth.

On taking office, former minister for justice Alan Shatter announced his intention to shake up a profession that, he said, still reflected aspects of the 19th century. Never a fan of the Bar Council and its restrictive practices, the outspoken minister became the subject of personalised attacks when the legislation reached the Dáil and his later resignation was greeted with relief within legal circles. His successor Frances Fitzgerald has worked assiduously to mend political fences with both the judiciary and the legal profession. In the process, she has made significant concessions.

As the economy recovered, concerns that legal costs and practices acted as “stumbling blocks to economic growth” appeared to diminish. Traditional ways crept back into fashion and the Bar Council, along with the Law Society, secured concessions regarding their traditional controls and income streams, while postponing the introduction of multidisciplinary practices. The appointment of an independent Legal Services Regulatory Authority does, however, represent an important advance. For the first time, ultimate oversight of barristers and solicitors will pass to the agency. But its powers will not be as extensive as those originally envisaged. A deal of self-regulation and protectionism will remain within the profession. Piecemeal reform is never satisfactory. If legal practices inhibit development, the time to deal with them is now, not when the State is faced by another economic downturn.