Legal services through a market lens

There is a growing interest within Government in “looking at legal services through a market lens”, Justice Minister Jim Wallace told delegates in the keynote speech at the joint conference of the Law Societies of Scotland and Northern Ireland at St Andrews last month.

“It provides a way of illuminating some key questions – are legal services providing better services to business, better access to justice for individuals, value for money for the taxpayer, and enhanced income to the domestic economy? It is a big agenda and one on which we will need close and creative discussions with The Law Society of Scotland.”

He said this points to some exploratory work around the structure and organisation of legal services.

“Government already intervenes in both the demand and supply sides of legal services; and we need to carry through this work if we are to be clear about the function, cost and impact of Government intervention.

“The rationale for regulation and its methods and tools have to reflect the context provided by the market and until now our understanding of the dynamics of this market and its trends has been limited. We mean to improve on that.

“In that process I expect we will need to examine some potentially very large topics, such as the market in community legal services and ADR; new forms of supply including so-called ‘advice lines’; and new forms of private funding through insurance or indemnity. No doubt we will also need to ask questions about the continuing relevance of the firm as the organisational unit of delivery.”

Addressing the economic debate over satisfying clients’ demand can’t progress without addressing issues of quality of legal services, said the Deputy First Minister.

He said there were many examples of excellent practice within the profession in dealing with complaints, sharing a fundamental commitment to positive quality assurance.

“I have absolutely no doubt that we all need to develop the mind-set that sees complaints as a positive aid to improved business practice – as an opportunity and challenge rather than a threat or obstacle.

“That means entrenching the behaviour, habits, standards and management models that should minimise complaints in the first place; and having a well-developed and positive response to complaints when they do arise. One of the particular challenges facing the legal profession is how these approaches can be harnessed by small firms whose resources are already fully stretched.”

Turning to legal aid and access to justice, he said “it is not a perfect system, there is room for improvement”.

Highlighting “significant improvements” such as the extension of legal aid to tribunals and new arrangements for granting of urgent legal aid, he said “all of these changes should bring real benefits from the client’s perspective”.

“But I am well aware that the system will only work effectively if there are sufficient solicitors to undertake legal aid work and recognise that the fees for such work are an important factor. I am very conscious that fees for such work have not changed for some time and have said that I would be prepared to consider an increase – provided that it is accompanied by the introduction of a robust quality assurance system to give the clients the reassurance they expect and deserve about the service they will receive.”

On criminal legal aid, he said the fixed payment system for summary cases “has settled down well and successfully weathered the various challenges that some have raised against it”.

However, he expressed concerns about access to legal services.

“I am concerned that people sometimes don’t understand the services available to them; don’t know where to turn, and get lost in the system. I am also worried that the provision of the services that people need may be patchy, both in geographical and sectoral terms.

“We need to develop more effective referral systems, we have to look at innovative ways of delivering services, particularly in remote areas and we need to make progress towards robust and transparent quality systems.”