Legal Services Bill [HL]

moved Amendment No. 108J: 108J: After Clause 107, insert the following new Clause— ““Monitoring and research (1) The Secretary of State shall, in accordance with the provisions of this section, provide for the carrying out of a study into the operation of this Part. (2) The Secretary of State shall make such preparations for the study to begin as soon as regulations bringing this Part into force; and such preparations may relate to the instruction of a research team and formation of a research advisor group to assist in the direction of the study. (3) Within three years of the date on which this Part comes into force, the Secretary of State shall lay before Parliament a report on the results of the study. (4) This Part shall cease to have effect five years after the date on which this section of this Act comes into effect.”” The noble Lord said: We are greatly indebted to the noble Lord, Lord Maclennan of Rogart, for having initiated an interesting debate on the question of pilot schemes. I would now like to try a different approach. In the Joint Committee, we spent some time working out how we could foresee some of the problems and difficulties that might arise with alternative business structures. We agreed with the sentiment expressed by the noble Lord, Lord Borrie, that it is difficult to envisage pilot schemes that could adequately test the various structures that might come forward under this part of the Bill. However, we were left with what the noble Lord, Lord Maclennan of Rogart, I think, called a shot in the dark; we were left with the impression that no one was quite sure what would happen. Although, as has just been pointed out, we came to the conclusion that we could not see that a pilot scheme would be suitable for the introduction of ABS licences, we were still very worried about the level of uncertainty that existed about the impact of ABS provisions. That is why, in our recommendations, we urged the Government to use less haste and more care and to follow the approach of the Clementi report, which gave rise to Table 5 on page 85 of our report. I am indebted again to the Law Society of Scotland, whose Michael P Clancy, director of law reform, came down and spent some time trying to think through the best way forward. The whole question of alternative business structures has already been considered in Scotland. A research working group on the legal services market in Scotland was established by the Scottish Executive, and I have the benefit of its report, which it submitted last year. That report concluded that the case for alternative business structures in Scotland and the suitability of regulatory arrangements such as those proposed for England and Wales were a matter for further policy development by the Scottish Executive in consultation with interested parties. The report will serve as a basic source of evidence for future consideration of the case for alternative business structures in Scotland. Accordingly, Mr Clancy and his colleagues inthe Law Society of Scotland concluded that it is vital that proper research of the English provisions is undertaken in order to inform policy development not only in Scotland but in other jurisdictions. I am grateful to him and his colleagues for drafting the amendment, which would provide for a monitoring and research programme into the effectiveness of the mechanism for the regulation of alternative business structures, subject to a sunset provision. When we are as unsure as we are at the moment about what will happen with ABSs, it is right for a properly structured study to be undertaken so that we can examine what effect the ABSs are having. The study needs a proper structure. The noble Lord, Lord Clinton-Davis, said that we could consider the matter from time to time and raise it in debates, but there would be nothing as good as a properly structured study, led by the Government in consultation with all interested parties, just to see exactly what was going on and how the whole procedure was developing. That is why in the amendment, which is headed ““Monitoring and research””, we ask the noble and learned Lord the Lord Chancellor to, "““provide for the carrying out of a study””." The obligation is therefore on the Government to carry out a study. The Minister may say that they are going to do that anyway, but I know from my experience in government that all sorts of priorities come across ministerial desks from time to time and take their place in the queue. I would like this House to put this study right at the top of the list. The amendment proceeds to suggest that the noble and learned Lord the Lord Chancellor should, "““make such preparations for the study to begin as soon as regulations bringing this Part into force; and such preparations””—" these are only suggestions— "““may relate to the instruction of a research team and formation of a research advisor group to assist in the direction of the study””." Then, of course, the Government must report to Parliament. There is provision for a report to be laid before Parliament within three years of this part of the Bill coming into force.