Paul Connaughton (Galway East, Fine Gael)

I thank the Leas-Cheann Comhairle for giving me the opportunity to speak about this important matter. I commend the Minister for his timely overhaul of the regulation of legal practitioners in Ireland. Not only does this long overdue Bill implement commitments given under the EU-IMF agreement to remove restrictions to trade and competition, but it will also result in greater transparency in the legal profession.

Before one becomes a legal practitioner in Ireland, there are a number of complex hurdles to be overcome. It is welcome that the Minister has instituted a fairer complaints system and a mechanism for having costs reviewed and that he is now also going on to ease the path of suitably qualified people into the legal profession, which will further reduce costs. Currently, the Law Society of Ireland and King's Inns have a monopoly in training solicitors and barristers, respectively. I warmly welcome the fact that the Bill allows other bodies to be accredited by the newly established legal services regulatory authority to provide these services. There are hundreds of legal graduates who would love the opportunity to work in the legal profession but find they are blocked from doing so by an archaic entrance system which maximises revenue through costly exams and other procedures.

There is a perception that the Law Society of Ireland and King's Inns exams are putting an artificial brake on the number entering the legal profession, yet statistics from the Law Society of Ireland and the Bar Council of Ireland show that numbers have increased dramatically since 1970 when Ireland had approximately 2,000 people practising law as either solicitors or barristers. The current figure stands at 14,000, of whom 2,247 barristers are, but the real explosion has been in the number of solicitors. In 1970 there were just under 1,800 solicitors practising. Around 1998 the number had reached 4,000. The barrier of 8,000 was breached around 2009 and in just two further short years another 4,000 solicitors were added to the rolls of the Law Society of Ireland. Of the 12,000 solicitors currently in operation, 45% operate as sole practitioners, while 75% operate in firms with fewer than four solicitors. Thus, there are approximately 9,000 small firms of solicitors around the country, many of which have seen a large fall-off in conveyancing business. With business reducing and costs extremely tight, most of these firms are not in a position to take on an apprentice, with its attendant additional costs. Thus, people who have graduated in law since the demise of the Celtic tiger find they have little or no hope of completing their training under the current requirements.

I note that the council of the Law Society of Ireland agreed that it would be in the best interests of the public and the profession to support the new independent complaints structure provided for in the Bill. I urge the Bar Council of Ireland to state its feelings on the issue. People who have complaints alleging misconduct, the provision of inadequate professional service or the charging of excessive fees by solicitors must have a clear and independent mechanism for seeking redress, which is provided in the Bill. I also welcome the decision by the Law Society of Ireland that, following enactment of the Bill, all such complaints should no longer be made to that body but instead to the legal services regulation authority or, in cases in which a dispute relates to fees charged, the legal costs adjudicator. This important method of regulating costs will result in a reduction in legal costs which will bring Ireland more into line with the rest of Europe and create a more competitive environment.

Self-regulation has always been a difficult subject. It is welcome that in recent years lay members or non-solicitors nominated by groups such as IBEC and ICTU were involved in handling complaints and, since 2009, have been in a majority on the complaints and client relations committee. This reflects the fact that solicitors realised the need to address the public perception that they should not be adjudicating on complaints made against members of their own profession.

I welcome the move by the Minister to modernise the procedures and, in particular, the effort to make legal costs more predictable. The new Bill imposes a requirement for greater transparency in legal fees and will result in the development of guidelines on legal costs. It is also welcome that the charging of excessive legal costs can now be treated as misconduct under the complaints procedure. The excessive legal costs regime which has been prevalent in Ireland for many years is another major barrier to business. Reduced costs in this area will make life easier for the owners of small and medium-sized businesses across Ireland. Of course, legal costs are just one example of how the consumer has been ripped off in the past, a fact readily identified by the EU-IMF delegation, which has resulted, thankfully, in action being taken on this issue.

The new Bill represents a breath of fresh air for the legal system which, up to this juncture, was bedevilled by archaic terms and practices. I commend the Minister, a qualified legal practitioner, for having the determination to see this long overdue Bill through.

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