Legal Services Bill [HL]

This is such an important amendment that it is probably the most important one that we are discussing today. I am very grateful for the points that have been made by so many noble Lords already, but I recall that it was the noble and learned Lord, Lord Woolf, who warned that alternative business structures could have—I believe that I am quoting him correctly—““a devastating effect on access to justice””. There was a sense of chill when he used the word ““devastating””, because those of us who support alternative business structures in no way want that to happen. We want very much the opposite; we want alternative business structures to extend the opportunities for the public to have access to the advice that they need. Several of my colleagues who have already spoken contributed very positively to that debate. In the Joint Committee, witness after witness expressed their concern that the ABS provisions may have an adverse impact on access to justice. The Master of the Rolls told us: "““It is very difficult to see how this suggestion is going to improve access to justice for those who cannot really afford it because … anybody who is going to invest money into it is going to be looking for a return, quite unsurprisingly””." Since we had all that evidence, many of the bodies have continued to be in touch and say that they are still looking to the Government for some reassurance on access to justice. The Legal Aid Practitioners Group, which faces problems on a number of fronts, particularly since the Carter recommendations, highlights two areas that very much follow the points already made in this debate. Richard Miller, the director of that group, said: "““As a representative body for legal aid firms and agencies, we are particularly concerned about the likely impact on the current range of services provided by high street solicitors. Commercial providers will be attracted by the areas that can be ""commoditised, computerised and provide a reliable margin of profit. These services often subsidise legal aid work, and without them high street firms may not be financially viable. ABSs will cherry-pick only the profitable work, such as conveyancing, wills and telephone helplines””." The noble Lord, Lord Thomas of Gresford, has just made the same point. Richard Miller went on to quote from one of the contenders for alternative business structures who has actually said as much. Much more serious, however—I mention this particularly to the Minister—is the threat that claims farmers now have plans to own law firms. The Gazette of 4 January, which I quoted from a little earlier, highlighted a number of claims farmers who have already expressed an intention to do so. After the recent high-level collapses of the Accident Group and Claims Direct, both of which left many people worse off and caused losses to a whole range of individuals, this seems a highly undesirable development, and at the moment there is nothing in the Bill to stop it. I do not believe that the Government have ever responded adequately to the Joint Committee’s concerns. As my noble friend has already pointed out, we in that committee highlighted the enormous concern that we all had about access to justice. In one of our recommendations, we said: "““We consider that ABSs may reduce the number of access points for legal services … There is clearly an issue here and the only conclusion we are able to draw is that no-one can be sure how it will work out””." The Government need to rethink this area. I believe that my noble friend has given them an important amendment. The Minister may refer to the fact that one of the regulatory objectives, under Clause 1(1)(b), is ““improving access to justice””, which is good as far as it goes. My noble friend, under Clause 81, would make sure that there will always be adequate, "““provision requiring the licensing authority to consider the likely impact of a proposed application on access to justice””," right at the outset when the application is being determined. What could be more sensible than that? I am not sure that it will alleviate all the concerns, but it will go some considerable way towards doing so.