DOUGLAS MILL
Readers of The Herald could be forgiven for thinking that reform of the legal services market had only appeared on the agenda in the past month or so. Certainly, the flurry of letters to the editor and stories on the news and business pages - in The Herald and elsewhere - might suggest this is the case. Not so for the Society, or a number of others who have been at the heart of the debate for a number of years.
A brief recap may be useful at this point.
The provision of legal services has been a subject of discussion for some time, though it rose to prominence - in the UK, at least - with Sir David Clementi's independent review of legal services in England and Wales, which published its findings in 2004. The same year, the Research Working Group on the Legal Services Market in Scotland - on which I represented the Society, along with the director of law reform, Michael Clancy - carried out a similar analysis. After detailed deliberation, the working group reported last year.
Among its findings, it concluded that intervention was unnecessary and the forces of supply and demand should dictate further changes to the legal services market. The Society raised with the previous Scottish Executive the issue of driving forward the research working group. However, the elections intervened. It is encouraging that the new Justice Secretary, Kenny MacAskill MSP, has responded to the issue with some enthusiasm, while also highlighting the need to deliver a Scottish solution appropriate for the Scottish marketplace.
Meanwhile, the Department for Constitutional Affairs at Westminster decided to go further than Clementi, outlining its plans for alternative business structures, or ABSs, in the Legal Services Bill. Recognising that any change south of the border would impact on Scotland, the Society remained heavily involved in all aspects of the debate: setting up an ABS working party; having monthly discussions among our Council members; staging question-and-answer sessions at faculty meetings up and down the country; ensuring regular liaison with the Faculty of Advocates and our Big Four firms. Indeed, Douglas Connell, from Turcan Connell, made a constructive contribution by putting forward a positive set of proposals for a form of limited multi-disciplinary practices.
In June, we staged a successful event in London for our members there, with ABSs taking centre-stage. At the same time, we have been gearing up for a major conference, The Public Interest - Delivering Scottish Legal Services, to be held in Edinburgh on September 28. Indeed, the subject of ABSs arises at events beyond our shores, and will likely feature at the Chief Executives of the European Bar Associations conference, to be hosted by the Society next month.
It is also likely to be on the agenda at the International Institute of Law Association Chief Executives conference in Singapore in October. The International Bar Association in Singapore, the following week, will be another platform where ABSs will be discussed.
All this amounts to a considerable effort on the part of the Society. Rightly so, because the issue is of sufficient importance to demand such attention. We should never forget that this does not just impact on the legal profession - we are determining the future of a sector that contributes £1.2bn turnover a year to the Scottish economy, employing 30,000 people. A productive debate on the future of legal services in 21st century Scotland, based on evidence rather than perception, requires the broadest possible input if it is to be of value, which is why we welcome interested newcomers and seasoned veterans alike to the discussion.
The speakers at our Edinburgh conference - which will include the Justice Secretary - can outline some potential business models and give their views on the best way forward. For the Society's part, we are keenly aware of the competing interests involved, which include ensuring access to justice, competition in the legal services market and consumer protection. We are eager to take all those views into account in reaching, as far as is possible, a consensus on the issue.
We understand the justifiable concerns of those who say that high street and rural firms would find it hard to compete with, for instance, a supermarket chain providing legal services, and may be forced out of business.
Yet we also realise that the big firms are competing in a global marketplace. The success of the big firms is something to take pride in - they should not be hampered. Equally, we don't want to affect the availability of lawyers in certain parts of the country or the viability of our consumer protections. It is worrying that it is becoming increasingly difficult to attract young lawyers to small and even medium-sized towns. Despite that, most would agree that it is perfectly acceptable - even welcome - for others to compete with solicitors for business, but not to compete as solicitors.
The solicitors' profession has more capacity for change now than at any time in the recent past. Solicitors are more consumer-focused, better qualified and harder working than ever before. They are increasingly accessible, accountable and successful - we should all be proud of that. I know I am.
But the Society is only one player here. This is a matter for everyone in the solicitors' profession and, indeed, the whole of civic Scotland. Ultimately, the Scottish Executive and Scottish Parliament will make their own judgments on the way ahead and the Society will play its full part in assisting the Scottish Executive and Scottish Parliament to make the right decisions for Scotland and Scotland's legal system.
But whatever happens, the profession's core values of integrity, independence and confidentiality must be maintained.
- Douglas Mill is chief executive of the Law Society of Scotland
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