Supermarkets and banks would have to pass a "fit to own" test if they wanted to provide legal services, under proposals published by the Scottish Government.

A controversial consultation paper sets out ministers' plans for alternative business structures (ABS) for the legal profession following similar moves south of the border, where the changes have been branded "Tesco Law".

It could lead to external ownership of law firms, partnerships between solicitors and non-solicitors, and organisations like banks and supermarkets providing legal services including conveyancing and will-writing.

The Scottish paper says there should be no restriction on the kind of organisation offering legal services, but that outside owners would also have to comply with a code of conduct.

The details of the "fit to own" test would be specified by the regulator, but the criteria would include honesty, integrity and reputation, as well as competence, capability and financial soundness.

Justice Secretary Kenny MacAskill said: "This a once-in-a-generation opportunity to create a more flexible and modern regulatory framework for Scotland's legal services."

The consultation was prompted by a super-complaint to the Office of Fair Trading by consumer watchdog Which?

The watchdog said the current situation in Scotland restricted choice to consumers.

Multi-disciplinary practices would allow solicitors and other professionals such as accountants, architects and surveyors to come together in business to provide a one-stop shop.

Although most solicitors voted in favour of the move, it received a mixed reception in the legal profession yesterday.

Mike Dailly, principal solicitor at the Govan Law Centre, said he was apoplectic at the Government plans.

He said last night: "This is treating justice as a commodity. They are saying that access to legal services is the same type of goods and services as a tin of beans.

"It is going to undermine the independence of the legal profession."

The proposals in the consultation paper include that regulation of ABS would apply to any form of business in which legal services were provided.

Management companies that act as middle men for solicitors by advertising "no win, no fee" cases could also be regulated.

Richard Henderson, president of the Law Society of Scotland, said the proposals represented "a huge opportunity to modernise legal services and boost the potential for legal businesses to thrive both at home and internationally, while retaining high standards and promoting access to justice".

Victim Support Scotland said it welcomed moves to extend financial eligibility for civil legal aid to those with disposable incomes up to £25,000 a year, beyond the current limit of £10,306.

A spokesman said: "Our primary interest in the consultation is to ensure, at the end of the day, the widest possible availability of legal aid for victims of crime and it is eminently sensible that the consultation takes place".

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