Lawyers who reject 8% fee cut must give notice

BARRISTERS, ACCOUNTANTS, architects and other professionals who are not willing to reduce professional fees by 8 per cent have…

BARRISTERS, ACCOUNTANTS, architects and other professionals who are not willing to reduce professional fees by 8 per cent have been given 30 days to withdraw their services to the Government.

A letter seen by The Irish Timesstates that "any existing service provider who is dissatisfied with this reduction in fees will be allowed to withdraw their services by doing so in writing giving 30 days notice."

The reduction in fees for consultants was effective from last Sunday, March 1st and covers services provided on or after that date.

Last month the Government announced the cut in fees as part of its plan to achieve €2 billion in savings this year.

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At the time the Taoiseach Brian Cowen said the move would save €80 million “through a general reduction of the order of 8 per cent in all professional fees, for example in the legal and medical areas”.

The letter states that where the current contract does not allow for fees to be negotiated down by the deadline of March 1st, “then the fee reduction should be calculated at a rate that would give the equivalent of an 8 per cent reduction over 10 months in 2009 and 8 per cent in a full year”.

Departments have been advised to refer to a recent Dáil speech by Minister for Finance Brian Lenihan on the state of the public finances “by way of context for engagement with professionals on the need for a reduction in their fees”.

Advertisements appeared in the national press yesterday announcing that Minister for Social and Family Affairs, Mary Hanafin, is entering into a one month consultation period with medical professionals who have contracts with the department. It requested submissions by Friday March 20th next.