Legal Services Bill [HL]

moved AmendmentNo. 108H: 108H: After Clause 107, insert the following new Clause— ““Miscellaneous Pilot scheme (1) The Secretary of State shall by order establish a pilot scheme for the provisions of this Part. (2) In establishing a pilot scheme the Secretary of State shall take into consideration— (a) the demography of the area, and (b) the size of the area. (3) The Secretary of State shall lay a report before Parliament on the pilot scheme. (4) In producing a report under subsection (3) the Secretary of State shall consult— (a) such persons or bodies he considers represent the interests of consumers; (b) such persons or bodies he considers represent the interests of approved regulators; (c) such other persons or bodies as he considers appropriate. (5) An order under subsection (1) shall be laid before, and approved by a resolution of, both Houses of Parliament.”” The noble Lord said: As we reach the end of our consideration of Part 5, I propose a new clause intended to probe how the Government envisage the rolling out of the alternative business structures. It is also intended to let us consider the possibility that, notwithstanding the Government’s commitment to the liberalisation of the provision of legal services and all the uncertainties inherent therein, they may be willing to apply, on the ground, the proper test of how it would work in practice. When replying to the Government’s consultation paper In the Public Interest?, the Law Society said that, "““there is a risk that there may be long-term structural effects that destroy service provision and the fabric of small communities … there are very serious risks to access to justice from the uncontrolled admission of new entrants … We believe that the Government needs to carry out much greater research into the likely impactof liberalisation before taking final decisions on the wayforward””." It is very difficult to carry out research without a pilot scheme. The theoretical response to the liberalisation of the market cannot be wholly successful in answering the great uncertainties to which everyone who has looked at this issue has drawn attention. The Joint Committee that examined the draft Bill drew attention to the possibility—which we debated earlier, at some length, so I shall not rehearse those arguments—that some of thereforms may reduce geographical availability. Its report stated: "““We recommend that the Government amends the draft Bill to ensure that the impact of ABSs on access to justice, particularly in rural areas, informs the decision-making process for licensing an ABS firm””." The practicalities of establishing a pilot scheme may seem formidably difficult, and I look forward to hearing what the Minister has to say about them. However, in view of the potential consequences of the implementation of Part 5, it is reasonable to proceed by bringing forward the fruits of a pilot scheme to be considered by Parliament. Those who are satisfied that the project is worth embracing in the interests of the consumer will be fortified if a pilot scheme demonstrates that the fears are unjustified. There is no hurry to reach a conclusion. If one takes the advice of the progenitor of this development,Sir David Clementi, it seems that caution is the characteristic that should govern how we proceed.