Legal Services Bill [HL]

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 1. I shall speak also to a considerable number of other government amendments. As a new entrant into discussion on the Legal Services Bill, I am aware of the very detailed consideration that it received in your Lordships’ House. A number of changes have been made to the Bill, which has now come back to this House, and I should like to acknowledge the work of your Lordships in helping to improve it. I suspect that we shall have one or two disagreements this afternoon, but I start by commending the spirit of the House in seeking to improve the legislation. I am confident that the outcome of today’s deliberations will bring the Bill to a conclusion; none the less, whatever is to befall us, I pay tribute to all noble Lords who have helped to improve it. This group includes a number of government amendments that were accepted in the other place and are minor and technical changes or relate to areas of policy where I believe there is little between us. Amendments Nos. 1, 2 and 3 require the board to seek the approval of the Lord Chancellor before making appointments to the Consumer Panel or removing members. These amendments received widespread support in another place and further safeguard the independence of appointments to the panel. Amendments Nos. 6, 7, 9, 16, 23, 55, 56, 57, 68, 80, 146, 215 to 218, 230, 237, 238, 248, 249, 251, 254, 255, 258, 259 and 261 are of a minor and technical nature. They make technical or consequential drafting changes, further clarify provisions in the Bill or are minor amendments that are consistent with previously agreed policy. Amendments Nos. 17, 18, 21, 22, 27, 29, 30, 31, 32, 33, 36, 37, 38, 96 to 99, 101 to 145, 172, 175, 176, 183, 219, 220, 222, 227, 240 to 243, 263 and 264 refine the ownership provisions in Part 5 of, and Schedules 16 and 17 to, the Bill in order to provide more clarity on how firms and companies with complex ownership structures fit into the ABS or recognised body regimes, as well as more clarity on whether non-lawyer owners and managers are subject to the fitness-to-own tests. Amendments Nos. 28, 34 and 35 make necessary amendments to close a loophole in Clause 108, which would have allowed a body to have low-risk status even if it was 90 per cent owned by another licensed body that itself might be 100 per cent non-lawyer owned. Amendments Nos. 53 and 54 ensure that the board will have sufficient funds to cover any expenditure that it needs to incur as a result of functions that it has under other Acts, by virtue of amendments made to those Acts by the Bill—for example, functions conferred on the board by the Compensation Act 2006. Functions covered by these amendments will necessarily have been approved by Parliament. It is important that we ensure that the board is not left with a funding shortfall. Amendments Nos. 58 to 67, 234, 244 to 247 and 260 are necessary to update the Bill’s provisions on legal professional privilege to ensure that they take account of the most recent developments in the law of privilege. Together they reflect the fact that legal professional privilege applies not only in legal proceedings but in other contexts, and the fact that it extends not just to communications but also to documents, materials and information. In line with Treasury guidance, Amendments Nos. 89 and 147 ensure that, should it be necessary, ordinary members of the board and the Office for Legal Complaints can receive a pension, allowance or gratuity. The amendments also allow for ordinary members of the two organisations to be paid compensation, if appropriate. At this stage, we do not intend to make the posts of chair and ordinary board member pensionable. However, it is important that the Bill is not too restrictive, as circumstances may change. I understand that this is normal in relation to a number of public bodies. Amendments Nos. 90 and 148 also allow for the payment of compensation to staff at both organisations for loss of employment. Amendments Nos. 91 to 95 ensure that exemptions from the requirement to be authorised in order to conduct reserved instrument activities that currently apply to employees working under the supervision of authorised persons are extended to cover partners who conduct reserved activities under the supervision of authorised persons. Amendments Nos. 150 to 171, 173, 174, 177, 187, 189 to 191, 193 to 202, 225, 226, 228, 229, 232, 233 and 257 extend the regulatory powers of the Law Society to improve its powers over sole practitioners and employees of solicitors. Also, Amendments Nos. 188, 192 and 224 reflect the commitment made in this House to further update the Law Society’s powers so that it is able to rebuke and fine solicitors for less serious professional misconduct cases. Minor and technical changes have also been made through Amendments Nos. 178 to 182, 184 to 186 and 223 to the information powers in Schedule 16. I hope that taking this large group of amendments together makes sense to the House. I believe that there are no substantive differences between us on these issues. I think the amendments respond effectively to many of the points made in your Lordships’ House and in the other place. Moved, That the House do agree with the Commons in their Amendment No. 1.—(Lord Hunt of Kings Heath.)