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English law firm seeks slice of £100m legal aid market | English law firm seeks slice of £100m legal aid market |
(about 1 hour later) | |
By Jim Fitzpatrick Economics and business editor | By Jim Fitzpatrick Economics and business editor |
An ongoing strike by publicly paid solicitors has prompted a London legal practice to consider entering the £100m legal aid market in NI. | |
More than 150 criminal cases are currently stalled and more than 200 defendants are without representation. | More than 150 criminal cases are currently stalled and more than 200 defendants are without representation. |
Most solicitors who do legally aided work have withdrawn services in protest at reduced fees recently introduced by the Department of Justice. | |
For other solicitors, the legal strike is an opportunity to win new business. | For other solicitors, the legal strike is an opportunity to win new business. |
The BBC understands that at least one major London firm has written to the Department of Justice about possibly setting up shop in Belfast. | The BBC understands that at least one major London firm has written to the Department of Justice about possibly setting up shop in Belfast. |
Several local firms who previously avoided such work are now preparing to take criminal cases funded through legal aid. | Several local firms who previously avoided such work are now preparing to take criminal cases funded through legal aid. |
The total bill for publicly funded legal work is expected to top £100m in NI in the coming year, though it will reduce to around £75m over the next three years. It is that reduction which has caused the dispute. | The total bill for publicly funded legal work is expected to top £100m in NI in the coming year, though it will reduce to around £75m over the next three years. It is that reduction which has caused the dispute. |
In March, the justice minister introduced new payment rates which will slash £18.3m from the total bill this year. | |
The Department of Justice said the terms remain more generous in NI than England and Wales or Scotland. But local lawyers are angry and have withdrawn their services. | |
Negotiations between the department and the Law Society - which represents Northern Ireland's solicitors - have failed to resolve the dispute. | |
Meanwhile the department has written to all legal firms in Northern Ireland asking them if they would be prepared to work under the new terms. | |
Willing firms | Willing firms |
A final list of willing firms will be ready by Friday and will then be passed directly to defendants who are currently without representation. | A final list of willing firms will be ready by Friday and will then be passed directly to defendants who are currently without representation. |
It is understood that the department is pleased with the response it has received and believes it will soon have enough new lawyers to clear the backlog of cases. | It is understood that the department is pleased with the response it has received and believes it will soon have enough new lawyers to clear the backlog of cases. |
The Law Society in Northern Ireland is the body which represents the 2,300 solicitors operating in this jurisdiction. Not only does it act as a kind of union representing their members' interests in this dispute, but it is also the professional regulatory body. | The Law Society in Northern Ireland is the body which represents the 2,300 solicitors operating in this jurisdiction. Not only does it act as a kind of union representing their members' interests in this dispute, but it is also the professional regulatory body. |
Any outside firm seeking to operate in Northern Ireland would require a certificate from the Law Society in NI. | |
The society could, in theory, withhold permission but it is hard to see how it could ultimately stop a properly incorporated legal firm from setting up in business. | |
So far, the society said it had yet to receive any such request. | |
Meanwhile there will be further bad news for the legal profession in Northern Ireland whenever the Northern Ireland Audit Office publishes a report into legal services. | Meanwhile there will be further bad news for the legal profession in Northern Ireland whenever the Northern Ireland Audit Office publishes a report into legal services. |
The report, due to be published in the near future, is expected to be highly critical of a system which effectively allowed barristers to double charge for big cases. | |
In some instances, it is understood that counsel charged a brief fee - which is supposed to include payment for preparation of the case - but then also charged a fee based on hours which also covered preparation work. | In some instances, it is understood that counsel charged a brief fee - which is supposed to include payment for preparation of the case - but then also charged a fee based on hours which also covered preparation work. |
This double charging was not illegal, but happened due to governance arrangements in Northern Ireland not being as rigorous as they were in other UK jurisdictions. | |
The loophole which allowed this to happen was closed in 2009. | The loophole which allowed this to happen was closed in 2009. |
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