Cantillon: EU sceptical of legal services reform

After pressing the Government for years to advance the long-delayed overhaul of the legal professions, the European Commission’s assessment of the final package underlines doubt about its potential to blunt high legal costs.

To recap, draft laws to reform the sector were diluted late last year after a prolonged lobbying campaign by the Law Society and Bar Council. The new law is now on the statute book. Minister for Justice Frances Fitzgerald (pictured) has insisted the reform contain substantial provisions to reduce costs, but the commission is sceptical.

“It remains to be seen whether the new Legal Services Regulation Act will be effective in lowering costs, following numerous concessions,” notes the EU’s executive branch in its latest report on Ireland.

“The Legal Services Regulation Bill, first published in October 2011 under Ireland’s commitments of the EU-IMF financial assistance programme, was at last passed by both Houses of the Oireachtas at the end of December 2015. Its passage was made possible following significant additional concessions to the Law Society and Bar Council.

“Thus, a large number of amendments were introduced at a late stage and affect major issues such as complaints, limited liability partnerships and membership. The new regulatory framework is welcome as it introduces new modes of operations and competitive pressures, and it establishes an oversight of the legal services profession by an external body.

“However, the concessions granted put the responsibility on the soon- to-be-established Legal Services Regulatory Authority to demonstrate its independence from the legal services profession and to defend the interest of society against vested interests. Close monitoring will therefore be required.”

In the language of the Brussels bureaucracy, this is something close to a kicking.

Still, the commission was encouraged that the new authority is required to conduct a review no later than two years after the Act comes into force and at least every three years subsequently. There’s no rush, however.