Clause 15
Legal Services Bill [Lords]
Public Bill Committees, 19 June 2007, 10:30 am
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
Reading through the Hansard reports of the debate on the amendments, I felt that the debate has raised more questions than it has answered. That is not surprising considering the lateness with which the amendments were tabled and the way in which the Government have done a U-turn at the behest of their union puppet masters. The White Paper stated:
“The Not for Profit (NFP) sector will be brought within the regulatory scope of the LSB and the ABS licensing scheme. This will ensure the same level of protection for consumers no matter where they obtain their legal services.”
The Government response to the Joint Committee on the Draft Legal Services Bill showed a slight shift in that position. It stated:
“We are currently working with the TUC to ensure that exemptions under the Legal Services Bill take account of the position reached with respect to trades union exemptions under the Compensation Act, and considering whether any further provision is needed in relation to the Bill regime.”
The Compensation Act 2006 is different from the Bill in that it introduced regulation to a formerly unregulated sector, whereas the Bill will reform an existing regulatory regime. The key feature of the former approach is that the trade union exemption is not enshrined in statute; it is a matter for subsequent statutory instruments.
The Conservatives’ basic position is that we oppose these unfair, illogical and rushed amendments, and I shall ask my hon. Friends to vote against them. However, if the Government wish to continue on such a course, they should make it clear that the Solicitors Regulation Authority may, if the Legal Services Board approves the necessary rules, require that lawyers provide services for trade union members only through a regulated entity. The Minister has a lot of thinking and explaining to do on what are, frankly, shabby proposals before Report, and certainly before they are dissected in the other place.
I would be grateful if the Minister came back on that point. It should be made clear that the SRA and other regulators may require that lawyers provide services for trade union members only through a regulated entity.