Dáil debates

Thursday, 21 July 2016

Appointment of Members of the Legal Services Regulatory Authority: Motion

 

11:00 am

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats) | Oireachtas source

The Legal Services Bill lingered around both Houses for quite some time. It changed hands from one justice Minister to another and there were various controversies along the way. We are all well aware of many issues from the time. The process has not been straightforward and the appointment of the board comes at a critical time in its life stages.

In 2014, the European Commission wrote to Ireland via the Department of Foreign Affairs and Trade to notify us that Ireland was in breach of the law by virtue of current regulations regarding the advertising of solicitor and barrister services. In 2014, the Commission outlined in a very detailed list why we were in breach and our Government replied that it would fix the breach in the Legal Services Bill. According to Mr. Ken Murphy's piece in The Sunday Business Post, it transpires that the Law Society of Ireland was never informed that it was breaking the law, despite the Government being advised by the European Commission that this was the case. At a minimum we have had two full years where we have been in breach of the EU legislation. Significantly, the State did not remove consent from the Law Society for the current practices despite knowing about the breach. It is interesting that when it comes to other legislation or European directives there is hell fire and brimstone but this one was not addressed.

The illegal advertising regulations have stifled competition in the sector and stopped any realistic option to reduce legal costs, which is a significant factor in the inflated awards we see in the courts, thus driving insurance prices higher and having an impact on the cost of living. There is a direct impact on the individuals practising as solicitors and barristers but there is an indirect but major impact on so many other people in society.

It is interesting that the proposed chairperson was involved in the National Competitiveness Council.

One of the big issues is the breach, which has not been addressed. It is interesting to note that the EU Commission wrote in recent weeks to the State again about the breach. Is this why we are now seeing this back in the House and why the board is being appointed? Is this why there is a sudden rush to appoint the board? Has practical provision, for example, a premises for board meetings, been made or is that why the establishment date is in October?

While the State continues to hold the line until the Legal Services Regulation Act is commenced, all solicitors are in a position of being able to sue the State. More important, we have lost two valuable years during which increased competition in the market may well have driven down the cost of living, for example, insurance costs.

On foot of the letter from the Commission and the article inTheSunday Business Post, will the Minister of State immediately withdraw consent from the current legal regulations in order to promote enhanced competition and move towards compliance with EU regulation? Will the new board commit to acting upon the new regulations to ensure fairness in the market? Are there potential fines for being in breach? Has this methodology been worked through with the European Commission as a response to the letter received in terms of that breach?

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