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Reform of legal services
28/09/2007
The Scottish Government will work with the legal profession in Scotland to help it to compete in a changing market both nationally and globally, a Law Society conference was told today.
Justice Secretary Kenny MacAskill told delegates that the profession could not maintain its competitive position unless it embraced fresh thinking on how legal services are provided.
The conference was considering how the legal profession should respond to the recent Office of Fair Trading report that called for new business structures, bringing together lawyers and other professionals.
Mr MacAskill said:
"The Scottish legal system has served our country well for 300 years, helping people at times of crisis, protecting the rights of the vulnerable and supporting business and economic growth.
"It is clear that the profession cannot maintain its competitive position by standing still. The status quo is not an option.
"In its response to the recent OFT report, "Which" recognised that it is for the Scottish Government and the legal profession to take a leading role in any changes
"However, I recognise that the profession must not blindly follow the English approach or adopt a model that is unsuited to our legal market. Our demography is different, the structure of the profession is different and the challenges for access to justice are different.
"I want the profession to take the lead in identifying distinctively Scottish solutions. In a global world, Scotland's legal profession should be able to compete outwith their borders as well as within. A high quality legal profession will attract and retain commercial and financial business in Scotland.
"To draw a footballing analogy, our very best Scots firms should, like the Old Firm and others, retain distinctive Scottish identities, but be able to compete internationally against the best in the world. But there must be a place for the smaller institutions - The Stirling Albions - that play an important part in their local communities; and the ambitious outfits - the Gretnas - who need to be able to grow and punch above their weight.
"This Government is committed to access for all to high quality legal services and a competitive market which is appropriately regulated to ensure the public are protected and quality is maintained. We will do what we can to help the profession and to improve access to justice.
"This conference is an important opportunity for the legal profession to consider how it can change to meet the challenges of the future. It must be a milestone on the path to genuine reform, because for both the profession and for legislators the clock is ticking.
"I look forward to hearing firm proposals from the profession early next year."
Which magazine submitted a super-complaint to the OFT asserting that the current regulation of Scottish legal forms restricts choice to consumers and prevents the formation of alternative business structures. In its reponse the OFT has not assumed that the changes currently being proposed in England and Wales through the Legal Services Bill will be automatically suitable for the Scottish market.
The OFT recommends that by the end of 2007 the Government should publish a statement which details its policy views on:
- How it considers legal services in Scotland should be regulated
- How the restrictions outlined in the super-complaint can be lifted
- A timing commitment for these aims
The OFT further recommends that the legal professions in Scotland take full advantage of these opportunities and that the Faculty of Advocates and the Law Society of Scotland lift any of their own practice rules which contribute to the restrictions discussed in this response.
The Government has undertaken to respond to the OFT within 90 days (by December 3).