The Gazette 1991

GAZETTE

JULY/AUGUST 1991

should the same not be so for law? (x) Taxation of Accounts It is believed that no other such independent assess- ment or taxation of fees exists for other professions who can sue for their fees based upon contract. The consumer safeguard of taxation of fees should be provided to the clients of an MDP. The alternative is that solicitors' accounts should no longer be subject to taxation and that special fee charging arrange- ments between solicitors and clients should not only be permitted but also enforce- able. (xi) Practical Considerations If MDPs were permitted, it is idle to suggest they might not occur. If legislation legitimised the concept, there would be amalgamations of the small independent legal and accountancy firms in the rural areas wi th the problems already outlined regarding freedom of choice. In the major cities and financial centres both the "Big 5 " accountancy firms and the financial institutions such as merchant banks would, with financial inducements, buy out the most able partners or departments of firms under- taking commercial and corporate work. This important work would then be concentrated in the hands of the "Big 5 " and such financial institutions, the

majority of which would be controlled from outside Ireland. Quite apart from the Jack of consumer choice for the commercial clients, the effect upon the small inde- pendent professional firms left only with the reserved areas and less remunerative legal aid type work, stripped of the benefit of the high value commercial work, would be the closure of many such firms. In June, 1989 a questionnaire was issued by the Incorporated Law Society to some of the profession. Only 169 question- naires were returned and whilst it was stated that 441 solicitors were employed by the practi- tioners returning the forms it would be presumptuous to insinuate that all 441 practit- ioners were involved. The number of 169 practi- tioners is a tiny proportion (some 4.5%) of the total number of solicitors practising in the State. Such a survey could not be stated to equate in any way to a full and complete debate throughout the profession in Ireland wh i ch should be undertaken as a matter of urgency. 7. Conclusion There has been no clear demand for the introduction of MDPs. Neither has any Government survey indicated that there is a 6. The Law Society 1989 Questionnaire

necessity for the introduction of MDPs. It would be prudent first for any demand to be identified - none has. It is not of course to say that change is not desirable or necessary. Solicitors and the Law Society should attempt to treat not their own interests as paramount, but those of the consumer. It is however, quite legitimate that the topic of MDPs which is important to the profession should be addressed both within the profession itself and between the profession and other interested parties. The worst scenario would be for a conclusion to be reached without any worthwhile debate having been undertaken. The profession must be made aware of the dangers and opportunities that arise in regard to MDPs. Debate must be seriously undertaken by way of literature, discussion and meetings throughout the profession. The Law Society on behalf of the profession must adopt a position which is put to Govern- ment and debated with Govern- ment prior to MDPs being introduced by legislation. It is not evident as to how the antici- pated new Solicitors Bill will deal with MDPs - if for example, an extraneous statutory council deals with MDPs, then the Law Society's own influence would diminish dramatically. If, on the other hand, the Law Society is to monitor MDPs then if a position and strategy is not carefully implemented the Law Society's position could erode seriously

Doyle Court Reporters Principal: Áine O'Farrell Court and Conference Verbatim Reporting Specialists in Overnight Transcription 2, Arran Quay, Dublin 7. Tel: 722833 or 862097 (After Hours) Tj(ct(Cence in Reporting since 19S4

224