Minister for Justice Frances Fitzgerald has defended her legal reforms as "pragmatic" in the face of criticism from a State watchdog which alleged she gave solicitors and barristers a veto over the changes.
The Competition and Consumer Protection Commission said Ms Fitzgerald’s amendments to the Legal Services Regulation Bill, first proposed by Alan Shatter in 2011, “are a major disappointment”. The commission further describes the changes as a “significant reversal of the reforms that had been envisaged and are still required in the legal sector”.
However, it is understood a review clause, allowing for an assessment of how effective the changes are in two and five years’ time, is to be included in the legislation.
The views of the commission and other Government departments on Ms Fitzgerald’s changes were attached to a memorandum circulated in advance of yesterday’s Cabinet meeting.
In her defence, Ms Fitzgerald said her reforms “represent substantial progress and lay solid groundwork for further reforms in the immediate coming years” and address previous concerns of the commission.
Continuing concerns
Minister for Jobs, Enterprise and Innovation
Richard Bruton
said there is “no firm evidence that the major changes to the original Bill will actually reduce costs”. He added he has continuing concerns with provisions in relation to limited liability partnerships.
Ms Fitzgerald's amendments include an option for solicitors' firms and legal partnerships to operate with the benefit of limited liability for the first time, although such businesses will face a stronger form of oversight by a new Legal Services Regulatory Authority.
The benefits of limited liability, which curtails a practice’s exposure to financial losses, will not be extended to any other profession.
In its submission, the Office of the Attorney General said the Bill "constitutes a very significant overhaul of a system of regulation which, inter alia [among other things], will establish a new regulatory process in relation to legal professionals".
Policy matters
Ms Fitzgerald intends to have the Bill passed before Christmas but the Attorney General’s office said “a number of fundamental policy matters still remain to be finalised”.
The office’s submission also said the amendments to the Bill “were likely to be the subject of intense legal scrutiny once operational, and to give rise to litigation. It would be necessary for this office to examine the proposals for amendments to ensure that they are constitutionally and legally sound.”
Ms Fitzgerald's changes mean the Law Society will retain financial and accounting oversight of solicitors but the society will be overseen by the new authority.
The competition commission said the changes fell far short of commitments to establish independent regulation of the profession, adding: “The principle of independent regulation of the legal profession is being abandoned.”
The Department of Justice said Ms Fitzgerald did not regard the “the amendments as a significant row-back from independent regulation, but a pragmatic approach to continuing what works efficiently and effectively”.
