Tom Hayes (Tipperary South, Fine Gael)

I am grateful for the opportunity to contribute to the debate on this important legislation which will impact on one of the oldest and most influential professions in the country. The Bill will overhaul the current regulation of legal practitioners. This regulatory reform comes as part of our commitment to the EU and IMF and I broadly welcome the legislation as a huge step forward for this profession. The need for this reform comes as a result of the restrictive and costly nature of our legal profession. For many years, groups, both national and international, have criticised the costs of the profession and have called on governments to act. I am happy the Government and the Minister have finally decided to tackle this issue.

This Bill will establish a new legal services regulatory authority, a legal practitioners disciplinary tribunal and an office of the legal costs adjudicator. These new offices are being established in an effort to tackle the main problems facing the legal profession, including the handling of complaints, restrictive entry mechanisms, rigid business structures and, perhaps most important, lack of transparency. The legislation has caused a great deal of debate among legal bodies as well as among legal practitioners themselves. A number have strong views but I am sure the Minister is well aware of them.

Given the importance of this legislation, it is worth acknowledging the extensive time that has been provided to debate this legislation. At the very least, it demonstrates the Government's willingness to listen and to allow various views to be debated. I am happy that reform in the areas of costs adjudication and the streamlining of the complaints system have been widely welcomed by professional bodies and practitioners alike. This Bill will not only increase competition in this sector but it will provide for a fairer and more transparent complaints system. Many people have been sceptical about the closed off, self-implemented complaints handling system over the years but I have no doubt that changes provided for in the legislation will increase belief and confidence in the legal profession.

However, parts of the legislation have proved more controversial, in particular, the establishment of the legal services regulatory authority and the level of involvement of the Minister in appointing members to the authority. Opponents have argued that this level of involvement could compromise the independence of the profession. Whether that is true or not, I am concerned about the international criticism of this section of the legislation, notably by the American Bar Association, the International Bar Association, and the Council of Bars and Law Societies of Europe. Given the nature of our economy and the delicate nature of our recovery, I have concerns that this aspect of our international reputation could impact on foreign direct investment, which the State badly needs, as it begins to improve and expand again. Many companies, when seeking to invest overseas, generally look for stable democracies where they can enforce their rights and, if needs be, enforce their rights against the state. If these companies are under the impression that the state is in a position to manipulate the legal system, significant doubts could be raised about investment and the Minister needs to clarify the changes he proposes.

I have no interest in harping on about the way in which the authority is being established. The Minister is well aware of the criticisms in this area but I would like a provision inserted in this Bill that would reassure those overseas that the authority will operate independently and will not be influenced unduly by the Minister or his office. This is important because I believe this reassurance is needed truly to protect our international reputation as one of the best small countries in the world to do business. We should be proud of this and we prove week in, week out that this is happening.

I welcome the accreditation of other bodies aside from the Law Society and the King's Inns in the education and training of legal practitioners. The current monopoly on education and training removes incentives to innovate and minimise costs and severely restricts the numbers qualifying each year. This increase in competition will reduce costs, which are crippling many students looking to enter the profession. Those wishing to train as a solicitor face annual fees as high as €8,500, while those looking to become a barrister face an enormous annual fee of almost €13,000. These charges are a massive barrier to a large number of highly educated and enthusiastic young graduates looking to practise law. Both the OECD and the Competition Authority have called for changes in this area and I have no doubt that what has been proposed by the Minister will satisfy their requests accordingly.

The reform of the complaints and disciplinary system is another vital element of this legislation. This aspect of the legal profession has been too secretive and closed off to the public for too long. The reforms introduced by the Minister in this area will make the process more transparent, which is welcome.

I broadly welcome the Bill. I hope the Minister will take on board the concerns I mentioned. I also ask that he give consideration to the possibility of proposing a draft list of amendments in advance of Committee Stage to provide committee members and professional bodies with the appropriate time to analyse them.

I thank the Minister for the time he has given to the preparation of this Bill. It has cleared up many of the inaccuracies that have been stated.

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