Time is right to ring the changes
30/07/2007
As a former lawyer, I am very proud of the profession in which I once practised. It has already changed and must change further so it continues to provide an excellent service to consumers and businesses.
In a global world, Scottish businesses, including the legal profession, should be able to compete outwith their borders as well as within. Some already do so and more should be able to do so. There is no reason why Scotland's legal services should not aspire to emulate other Scottish businesses such as accountancy and finance that provide an excellent service here at home and fly the flag for Scotland internationally.
However, to do so they need to be able to compete not simply amongst themselves but with others. The Irish are providing such opportunities through mediation and other legal services. We can and should do likewise.
The Office of Fair Trading (OFT) is shortly to publish its response to the 'super-complaint' by the Consumers Association (CA). The CA argue for the wholesale opening up of the legal market, along the lines of reform being taken forward in England. This will allow new business structures to form, bringing together lawyers and other professionals, ending the restrictions on clients having direct access to advocates, and creating an independent body to regulate the legal profession.
I look forward to seeing OFT's response and will consider carefully what they say. However, we will not be pushed into blindly following an English approach. Scotland's legal market is different and Scottish society is different. The size of our cities and towns is in stark contrast to the huge metropolis areas down south that are bigger than Scotland itself. Such a situation requires a different approach.
There needs to be change in the structure of the profession to allow those who wish to compete internationally to do so, while at the same time protecting those who simply wish to continue to provide the excellent service they do. For instance the legal professions could modify their existing practice rules to allow increased competition. Alternative business structures could be explored which would enable the larger Scottish firms to compete internationally whilst protecting smaller, rural firms. These measures could be implemented without the need for legislation.
I recognise that some Scottish law firms are already concerned that changes in England may put them at a competitive disadvantage - this cannot and will not be allowed to happen. Scottish legal services must be able to continue to compete to win business in Scotland and elsewhere.
I want the legal profession to help us design distinctively Scottish solutions. I have doubts about the approach taken in recent years of driving change through setting up publicly run legal practices. My initial view is to support innovation coming from within the professions to address under-provision of legal services in areas such as domestic abuse, and ensure there is real competition across legal markets.
This will be supported by our commitment to putting legal aid on a much more stable footing. I am prepared to consider circumstances where extra funding may be needed to ensure proper access to justice, although we must all recognise that increased spending alone cannot be the solution to improving access to justice.
Like most politicians I have heard voices from within the profession urging us to let the professionals who know most about their business get on with it. Well, here is an opportunity for the profession to turn rhetoric into action.
I have met both the Law Society of Scotland and the Faculty of Advocates to discuss the future structure of the profession. I welcome the fact that the Law Society is developing proposals on alternative business structures for consideration at their conference in September and I look forward to seeing their proposals. The Faculty of Advocates have agreed to consider what changes could be made to their practices.
Whilst I appreciate the complexities involved in this, I have stressed to both the Faculty and the Society that I expect them to come forward with their proposals for change as a matter of urgency.
The excellent report by the Research Working Group into legal services can also help inform this work and I look forward to working with the legal profession and consumer interests on this next important stage in the development of the profession.
The Scottish legal system is a fundamental part of our national identity. I am committed to ensuring that no matter what changes it undergoes in the future it remains completely independent of government and is able to compete in both a national and global market.