Legal services competition group publishes report
3 May 06
Report recommends non-intervention in the legal market
A working group set up to examine issues relating to competition in the legal services market in Scotland published its final report today.
Set up in 2004, the group was chaired by the Scottish Executive and included representatives of the legal profession, consumer interests, the Office of Fair Trading (OFT) and independent researchers.
It examined the different legal services markets in Scotland and whether there were restrictions which were preventing, limiting or distorting competition in the different Scottish markets. Professional rules and practices were also examined in particular to establish whether or not they restricted competition.
Key findings from the group's work include:
- Competition varies markedly across the legal services markets in Scotland and also across geographical areas. Markets with relatively high levels of competition included commercial law, financial services/tax advice and residential conveyancing. Those with lower levels included executry work, family law, welfare/debt/housing and consumer law.
- Concerns were expressed about the availability of specialist practitioners in various fields - family law, housing debt, welfare, consumer law and in some geographical areas, particularly rural areas. There was also concern about the numbers coming into those areas, as well as criminal law, and the impact on future supply.
Overall, the evidence pointed to a case for non-intervention, assuming that market forces keep supply and demand in line. However, the rules and practices for professional bodies, which restrict competition, would have to ensure that the aims of consumer protection and administration of justice were balanced against those of competition.
Deputy Justice Minister Hugh Henry said: "It is in the interest of everyone using legal services that our markets are competitive. This report explores those markets, identifies issues concerning their operation and paves the way for further discussion and policy development on creating competition in the supply of legal services in Scotland to benefit consumers."
The group also recommended that sections 25 to 29 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 should be implemented. These allow for the extension of rights of audience in court to members of non-legal professional and other bodies in specified circumstances.
Further consideration is being given to a number of issues the group has identified, such as the existing arrangements for fee assessment by auditors of court and the appointment of curators and reporters. The group recommended reform and modernisation of the arrangements for the assessment or taxation of solicitors' fees by auditors of court.
The report is available on the Scottish Executive website at www.scotland.gov.uk/Legal/Services/Scotland.