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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.

6.

The Law Society 1989

Questionnaire

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

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