James Browne (Wexford, Fianna Fail) | Oireachtas source

I move amendment No. 1:

In page 7, line 18, to delete “to amend the Legal Services Regulation Act 2015;” and substitute the following: “to amend certain provisions of the Legal Services Regulation Act 2015, including for the purpose of making further provision in relation to the levy to be paid under that Act

and the roll of practising barristers;”.

I should first say that a significant fire has broken out at Wexford General Hospital. Our thoughts are with everybody there and I hope there are no injuries. Parts of the hospital are being evacuated and the Garda has asked people to stay away.

This group of amendments concerns the Legal Services Regulation Act 2015 and primarily relates to how the annual imposition of a levy on legal practitioners used to fund the Legal Services Regulatory Authority, LSRA, and the Legal Practitioners Disciplinary Tribunal, LPDT, is calculated. Part 7 of the Legal Services Regulation Act 2015 provides for the annual imposition of a levy on legal practitioners to be paid by the Law Society of Ireland, the Bar of Ireland and barristers who are not members of the Bar of Ireland. The levy is collected by the Legal Services Regulatory Authority and used to fund both the operating costs and administrative expenses of the LSRA and the independent LPDT. The LSRA issues annual levy notices to the two professional bodies and to individual practising barristers. The Law Society pays the levy to the LSRA for all solicitors who hold a practising certificate in the financial year to which the levy relates. The Bar of Ireland pays the levy to the LSRA for all barristers who are listed on the roll of practising barristers as Law Library members. Individual levy notices are issued directly by the LSRA to barristers who are on the roll but who are not members of the Law Library. The LSRA can also receive advances of funds from the Minister for Justice for the purpose of expenditure by the authority in the performance of its functions and this is set out under section 32 of the 2015 Act.

Amendment No. 1 updates the Long Title, while amendments Nos. 14 and 15 replace section 95 of the Legal Services Regulation Act 2015 and insert a new model for the payment and calculation of the levy as set out in new sections 95A to 95D, inclusive. The levy figure each year will now include an amount to cover the budgeted net expenditure for the coming financial year. This changes the nature of the formula for calculating the levy form a retrospective model which is currently based on the previous year's expenditure. It will become a forward-facing model based on the reasonable budgeted spend of the LSRA and the LPDT for the coming year. The LSRA will also be enabled to manage any surplus or deficit that may arise, including the establishment of a reserve, with the consent of the Minister for Justice. This also provides a statutory basis for the mechanism by which the LSRA repays through the levy funds advanced to it by the Minister for Justice under section 32 of the 2015 Act. In addition, it introduces an annual effective date on which a liability of legal practitioners for payment of the levy would be determined.

Amendment No. 16 updates the provisions of section 96 of the Legal Services Regulation Act 2015 which concern consequences for failure to pay the levy. It seeks to provide clarity on the sequencing where an application for voluntary removal from the roll of practising barristers is received at the same time or close in time to when an individual is removed from the roll for non-payment of the levy.

Amendment No. 17 clarifies what is meant by legal practitioner in the full-time service of the State for the purposes of this Act. Section 1334D of the Act requires that an entry of the roll of practising barristers in respect of each practising barrister shall specify whether he or she is in the full-time service of the State. The term "in full-time service of the State" is not defined in the Act and this has caused confusion among practitioners, with the LSRA receiving a number of queries on this issue.

Amendment No. 18 implements a recommendation arising from a statutory review carried out by the LSRA on the operation of the Legal Services Regulation Act 2015. The report was submitted to the Oireachtas in March 2019 and among its recommendations was the following suggestion:

The levy amount to be charged to each class of legal practitioner should be based on the percentage division of the workload of the LSRA allocated using such proxy measures and cost accounting methodologies as the LRSA may determine by regulation.The proxy measures and cost accounting methodologies are to be reviewed at least every three years.

The LSRA regulations, having regard to the number and type of complaints received by received by the LSRA, may prescribe a different levy in respect of the different categories of legal practitioners. The amended provision will also ensure the legal professions are consulted in advance of regulations being made.

Amendment No. 19 substitutes section 134 of the Legal Services Regulation Act 2015 and clarifies the information that barristers must submit, with an application to be entered on the roll which includes correspondence address.

Amendment Nos. 20 and 21 make a number of alterations to section 135 of the 2015 Act in relation to the variation of details included on the roll. Amendment No. 20 clarifies the obligation of practising barristers to notify the LSRA of any changes to their details as submitted on the roll of practising barristers. Having up-to-date details of a barrister's practising status is a key part of the levy calculation process. In addition, it inserts a number of new subsections addressing the limited circumstances where the records of the Bar of Ireland in relation to the membership of the Law Library differ from those held by the LSRA. This impacts on the calculation and collection of the levy. Section 5B provides an obligation on the Bar of Ireland to notify the LSRA where a person ceases to be a member of the Law Library. Sections 5C to 5H authorise the LSRA to change a person's status on the roll from Law Library member to non-Law Library member, following receipt of information form the Bar of Ireland, provided the LSRA has followed the notification process set out in the legislation. Amendment No. 21 inserts a new section 135A which obliges practising barristers to keep their correspondence address up to date with the LSRA. All of these amendments have been developed in consultation with the LSRA which has, in turn, engaged with the Law Society and the Bar of Ireland.

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