Review of legal spending by State

SPENDING ON legal services by the public sector will be investigated by a Government economic service established recently by Minister for Public Expenditure Brendan Howlin.

The total expenditure is not known, but a Public Accounts Committee report on the procurement of legal services by public bodies last year suggested it could be as high as €500 million a year.

The Irish Government Economic and Evaluation Service, set up by Mr Howlin in March, has been tasked with completing a “focused policy assessment” by the end of the year.

A departmental spokeswoman said the review would ensure the State was achieving maximum value for money and “not acting to distort the wider market for legal services”. Levels of spending on legal services and models of procurement across Government departments and agencies would be “mapped” and international best practice examined.

The legal profession will also be consulted as part of the review, which is expected to be published by the end of the year.

Fianna Fáil TD Dara Calleary submitted a parliamentary question to Mr Howlin recently asking him to outline action taken to address the issue of legal fees incurred by the State.

Mr Howlin said professional fees payable by Government departments and State agencies were reduced by 8 per cent in early 2009, and a further 8 per cent was applied to certain legal areas in Budget 2010.

He said the Legal Aid Board had served notice on the Bar Council of its withdrawal from the existing agreement with the council on civil legal aid fees. Its adoption of new arrangements would significantly reduce fees payable to barristers.

“Enhanced mechanisms for rigorous examination of claims have also been introduced in both the chief State solicitor’s and the director of public prosecution’s offices,” Mr Howlin said.