Legal Services Bill [Lords]

I refer the hon. Gentleman to my earlier comments. I am here to debate the Legal Services Bill. He may like to take that on board, as he has regularly interrupted many hon. Members who have spoken. What the Lords amendment does, by asking that the board appointments have the concurrence of the Lord Chief Justice, is to reach a fair compromise. It tackles the issue of overt political control, but still allows the Lord Chancellor to take the lead in the process. There is a contradiction in the Government's insistence that the Lord Chancellor should have an unchallenged right to make the appointments. The very first clause of the Bill rightly includes among the regulatory objectives the need for the independence of the legal profession. It is to be applauded that such a sound and clear statement is made so prominently. Why, then, risk undermining that welcome statement by allowing the Lord Chancellor unfettered powers of appointment to the board? Such an approach is in danger of sending out the opposite signal. I urge the Government to retain that sensible amendment. I now turn to the provisions that allow for alternative business structures. ABSs will allow more flexibility in the market and that will be good for both consumers and the profession itself. I certainly know of many solicitors firms where the finance director is held in high regard by the firm, but he is not made a partner because he is an accountant rather than a solicitor. Allowing for ABSs will, I am sure, enable many such finance directors to become partners, rather than simply be employees of the firm. However, it is important to ensure that any changes made in trying to improve the system do not lead to unintended negative consequences. The debate on ABSs has been going on for years and as firms and practices from a variety of professions seek to cut their overheads, it is only natural that they should consider having multi-disciplinary practices. That is fine in principle, but with it will come new challenges, from which we must not shirk, but which must be closely monitored, in the public interest as well as for the benefit of the consumer. For example, if there is a high street solicitor who merges with a high street surveyor, a consumer who requires the services of both professions should be free to go to two separate firms if he so wishes, rather than find himself under pressure to use only one firm. Moreover, with a multi-disciplinary practice, there should be vigilance to ensure that no unnecessary burdens are imposed upon a consumer if he wishes to bring a complaint against a firm where he has used the services of several professions within the same firm. For example, if a consumer has used the services of a lawyer, a surveyor and an accountant in the same firm and something goes wrong, the consumer should not suffer if the professionals decide to engage in a buck-passing exercise between themselves. To conclude, although there are some areas of concern, I support the main thrust of the Bill. It is right that our legal system should modernise, be more transparent and be more flexible—fit for the 21st century global market. The amendments to which I referred earlier do not compromise the principles behind the Bill. Indeed they serve to strengthen the legislation. I hope that the Government will accept them. By doing so, they will not only protect the consumer and the public interest, but safeguard our international standing in the legal world.