David Stanton (Cork East, Fine Gael) | Oireachtas source

I would like to thank the Senators for their contributions to our discussion of the motion. It is a motion which, along with a similar motion that will be put before the Dáil for its consideration on Thursday, can enable the formal appointment of the 11 nominated members of the new legal services regulatory authority. The immediate working objective is to obtain the required approval of the appointment of the nominated members by the two Houses in order that they can set about the early recruitment of their own chief executive.

I note that Senator Bacik and others questioned the issue of the appointment of the chief executive. The chief executive will be appointed by the authority itself and not by the Government. The authority is independent and the Government has nothing at all to do with that. We will offer job specifications and other supports to the authority. Obviously, we would be anxious to get it moving as quickly as possible in order that we can have the appointment as quickly as possible following the establishment day and that there will not be any delay. Any supports required will be made available.

Administrative provisions are being made in support of the public recruitment by the new authority for suitable and qualified persons for that post. A start-up support team is also being established and a suitable premises identified from which the new authority can commence its operations. These are the initial steps that will enable the members and the chief executive of the new regulatory authority to oversee and drive the establishment of the new legal services regulatory regime and shape it in the discharge of its powers and functions. It is planned at the stage we are now entering of setting up the new regulatory authority that it will include the phased commencement of parts of the Act, such as those dealing with legal costs, the new office of the legal costs adjudicator, the role of practicing barristers and pre-action protocols.

I would like to highlight a few elements of the new legal costs transparency obligations of the 2015 Act. These will apply to both solicitors and barristers in charging clients for their services. For example, all legal practitioners will be obliged to provide much more detailed information about legal costs from the outset of their dealings with clients. This will be in the form of a notice written in clear language which must be provided when a legal practitioner takes instructions. A cooling-off period is to be allowed for the consideration of costs by the client. When there are any significant developments in a case which give rise to further costs, the client must be duly updated and given the option of whether or not to go ahead with further proceedings. An aggrieved client will also have the option of applying for the adjudication of disputed legal costs by the reformed and modernised office of the legal costs adjudicators, which is currently known as the Taxing Master's office. The Act sets out, for the first time in legislation, a series of legal costs principles in support of the cost adjudication process. There will be a publicly accessible register of determinations regarding the outcomes and reasons for decisions of the legal costs adjudicators.

Following the establishment of the authority, its appointment of a chief executive and the initial commencement of parts of the Act along the lines I have just mentioned, the key provisions centred around Part 16 on the new public complaints procedures, professional conduct procedures, disciplinary procedures and the appointment of the new legal practitioners disciplinary tribunal will be commenced. The managed roll-out and commencement of these functions is planned for the autumn. This is being done in order to allow adequate time and preparation to ensure their effectiveness and success as crucial components of the new regulatory framework.

Let us not lose sight of the fact that this new complaints framework will be a regulatory watershed. Members of the public who are aggrieved at the services they have received from a legal practitioner, whether a barrister or solicitor, will now make their complaints to the independent legal services regulatory authority. They will no longer do so through the legal professional bodies as they do at present. Senator Conway spoke about a watering down of the Act. I remind the House that this Act, when fully commenced, will provide as a matter of law that barristers and solicitors may practice through the new business model set out in the Act. That is important to note.

The new legal practitioners discipline tribunal, established under the 2015 Act, will deal with matters of serious misconduct relating to solicitors and barristers. This single independent tribunal will, in time, replace the respective and separately operating conduct tribunals that deal with barristers and solicitors at the moment. The 2015 Act also sets out a clear path to new legal partnerships, business models involving barrister-barrister partnerships and barrister-solicitor partnerships, which will allow for such partnerships to open for business in competition with the more traditional lawyer structures, which will remain a practicing option.

I emphasise that the new regulatory authority will not stand still as a regulator. Under the Legal Services Regulation Act, it will conduct a programme of work consistent with its mandate. For example, it will be carrying out public consultations and reporting with further legislative recommendations over its first four years in office.

Senator Ó Domhnaill spoke about the Act being kept under review. Specific provisions have been made for the conduct of periodic reviews of the operation of the Legal Services Regulation Act, the first of which is to take place 18 months after the establishment of the new regulatory authority. These periodic reviews of the Act will occur in addition to the normal annual strategic and business planning obligations of the new authority. The Competition and Consumer Protection Commission will be a part of this new exercise. Senator Ó Donnghaile made some points about the justice committee. I thank Members for their comments about my stewardship of it in the past. I am sure the committee will also be able to engage with members of this authority, as it does with many others. It is probably one of the busiest committees in the Oireachtas, as I am sure the Senator will find out.

Under the Legal Services Regulation Act, a programme of work can be conducted consistent with its mandate. As I said, it will carry out public consultations and report on further legislative recommendations over its first four years in office. These will be in areas such as removing the existing client money and direct access restrictions relating to barristers, examining entry and training requirements for the legal professions, the possible unification of the two legal professions and the opening of the legal services market to multi-disciplinary practices. Senator Ardagh made comments about some of those issues.

In support of the planned and managed commencement of the relevant Parts of the section of the 2015 Act proposed, as I have outlined, between now and the end this year, an allocation of €1 million has been made available under the justice Vote for 2016 as set-up support for the new regulatory authority. Any funding advance from this allocation will be provided on a recuperable basis. Once in operation, the new regulatory regime will be self-funding by means of a levy on the regulated legal professions under the terms set out in Part 7 of the 2015 Act. Again, I note what Senator Ardagh said on that matter about the costs on small businesses.

As I said in my opening remarks, the Tánaiste has now signed a commencement order in respect of certain provisions in Parts 1 and 2 of the Legal Services Regulation Act 2015 as necessary to support the start of the new regulatory authority. The Tánaiste will also very soon by order appoint 1 October 2016 to be the establishment day for the new legal services regulatory authority.

Senators' consideration of this motion has been a third key in the opening up of a new era in the regulation of legal services and of legal costs in the State. I thank you, a Chathaoirligh, and Members for your time, support and consideration of these matters.