Peter Mathews (Dublin South, Fine Gael)
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Question 371: To ask the Minister for Justice and Equality his views on a matter (details supplied) regarding the Legal Services Regulation Bill 2011; and if he will make a statement on the matter. [2204/12]

Alan Shatter (Dublin South, Fine Gael)
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1The Deputy will be aware that the Second Stage debate in respect of the Legal Services Regulation Bill 2011 commenced in the House on 16 December 2011 and is soon to resume. The Bill represents a historical opportunity for modernisation and reform of the way legal services are provided in the State and of the antiquated and opaque legal costs regime. It sets out to achieve an appropriate balance between the Government's reforming policy objective of independent regulation and the professional independence of legal practitioners. In doing this, the Bill strikes a better balance between the respective public and professional interests now at play in the legal services sector.

In Part 2, section 9(4), the Bill sets out six objectives to which the new Legal Services Regulatory Authority must have regard in performing its functions. While three of these address public and consumer interests and the promotion of competition in the provision of legal services, the remaining three objectives relate to -

o Supporting the proper and effective administration of justice

o Encouraging an independent, strong and effective legal profession

o Promoting and maintaining adherence to the professional principles.

Section 9(5) (a) of the Bill goes on to give clear statutory expression to the core 'professional principles', namely that legal practitioners must – (i) act with independence and integrity, (ii) act in the best interests of their clients, and (iii) maintain proper standards of work.

Moreover, under section 9(5)(b), they must comply with the duties that are rightfully owed to the court, and, under section 9(5)(c), they must, subject to professional obligations, keep the affairs of their clients confidential.

The independence of the new Legal Services Regulatory Authority, which will have responsibility for the oversight of both solicitors and barristers, will be assured by the provisions made in the Bill. The Authority itself is to be democratically accountable - including, in its own right, to the Houses and Committees of the Oireachtas. The Bill specifically provides, based on precedent elsewhere in legislation, that the Authority "shall be independent in the performance of its functions". Furthermore, the independence of the new regulatory regime will be bolstered by the establishment of an independent framework to deal with complaints about professional misconduct. This framework is further augmented by a Legal Practitioners' Disciplinary Tribunal which will be independent of both the Authority and the legal professional bodies. As evident from Part 2 and other elements of the Bill, the new Legal Services Regulatory Authority will have the structures, functions and powers consistent with an effective, independent, regulatory body including a lay majority in its membership and a lay Chair. I do not accept, therefore, claims that under the Bill the independence of the new Authority, and thereby that of solicitors and barristers, is about to be fettered - ministerially or otherwise. Rather, the guiding principles of independence permeate the Bill and its respective provisions, particularly those relating to the legal professions and to the functioning of the new regulatory architecture.

As I have stated in presenting the Bill for Second Stage, there is no hidden agenda in relation to ministerial functions or appointments under the Bill. I believe that, taken together, the provisions of the Bill can make the independence of the two legal professions and the independence of their regulation mutually reinforcing. In that spirit, I remain happy to invite any constructive suggestions that might enhance the Bill's regulatory framework in this regard within the Government's stated policy objective of independent regulation. Indeed, I am already considering some relevant amendments for Committee Stage such as removing the requirement for the Minister's consent being obtained for any code of practice the Regulatory Authority proposes be observed by the legal professions. In tandem with the anticipated resumption of Second Stage which will happen in the next week or so, I have been continuing my consultations with relevant stake-holders including the professional bodies. I am confident we can bring the Legal Services Regulation Bill to a successful outcome in its mutual accommodation of the relevant independence principles and concerns.