Legal Services Bill [HL]

I agree with the remarks of the noble Lord, Lord Maclennan, about the importance of light-touch regulation. I agree that we need to ensure that there is not a propensity for the board to grow like Topsy; we must avoid inflation in the way that the noble Lord described. As I have said consistently throughout our proceedings, I will look again to ensure that we have recognised those issues properly. There are a variety of different models to choose from, and I guess that the Financial Reporting Council model applies in this case. I have also been looking at the models that support my case that such organisations should be paid for by the professions. I will not reiterate what I said earlier about the benefits we believe there would be. The different models include the Financial Services Authority and the Financial Ombudsman Service, which is funded entirely by the financial sector. The pensions regulator is also entirely funded by the industry. The funding of Ofcom is split 45 per cent and 55 per cent, while two-thirds of the Financial Reporting Council’s funding comes from the sector it regulates. There are different reasons why the funding regimes have been set up in this way. The Council for Healthcare Regulatory Excellence, which has been quoted, is required to be seen to be completely independent of the medical professions. That is why it is funded in that particular way. There are lots of different models. In choosing what to do, the Government have to be mindful of the variety of models and mindful of what they are seeking to achieve. I know that I am not going to persuade the Committee of the merits of my case because I already tried to do so in the last amendment. However, we did not consider the matter lightly. We looked at all the different models and talked to those who have a similar regime to the one we propose. We have thought carefully about the best use of government money and resources, and, overall, we believe that the system we have in place for the payments which will be made—regardless of an understanding that it is beyond complaints, which I completely accept—is the right one in the circumstances. There may be a principled objection in parts of the Committee, and certainly outside it, about who should pay for something that the Government are doing. But underlying the amendment is an issue about ensuring that the situation cannot escalate to the point where the levy required is unchecked. We believe that we have safeguards in the Bill, not least because we have now agreed that the regulations would come before the other place and your Lordships' House under the negative procedure. As I indicated, I will look to ensure that that is correct. I am afraid that, at this point, we will just have to disagree on the principle. As ever, however, I will continue to think.