The Gazette 1977

THE INCORPORATED LAW SOCIETY OF IRELAND GAZETTl MARCH 1977 VOL. 71 NO. 2 Solicitors' Remuneration in Ireland

Comment by The Incorporated Law Society of Ireland on the Consultant's Report and the Findings of the National Prices Commission (Occasional Paper No. 22)

A right to charge a special negotiation fee of 1% for negotiating the sale or purchase of property.

In general the report has found that the application made by the profession for the increase in fees sought, was justified on the following grounds — Rapid increases in wage, salary and administration costs (pg. 18). Earnings in private practice had fallen somewhat behind that of many employees in public employment (pg. 46). Solicitors had done relatively badly in comparison with the community as a whole (pg. 112). The Consultant also found that —contrary to general belief—increases in property values through inflation did not, by reason of the tapering scale of fees applicable, increase solicitors' incomes from conveyancing in the same proportion. Scale fees were the more appropriate manner of regulating solicitors' fees. The Consultant has made no recommendations in relation to fees for the free legal aid programme, explaining that he understood that this matter was under active and separate discussion. In the area of fees for court work, he has found that — Long delays have occurred between applications for increases and their final determination. Increases granted have failed to take account of rapid inflation (pg. 130). Hence, in putting, forward his recommendation for increases in the scale of fees he has suggested that they should be effected as soon as possible (pg. 135). Reference is made to the monopoly of solicitors, particularly in conveyancing and also to advertising and to general procedural problems in the work of solicitors, which cause delays. The questions of monopoly and advertising are, in the view of the Society, matters of public policy which have been debated in great depth and at considerable length in Increases in the past have been infrequent.

In June 1975 the Society indicated to the Prices Commission that it would welcome a study of solicitors' earnings. On the appointment of the Consultant, the Society arranged to co-operate fully in the mammoth task which he undertook in his terms of reference. At that time the remuneration of solicitors was under considerable criticism in the media, notwithstanding the Society's comment, that remuneration was reasonable. This criticism appeared to be based on the lack of understanding of the function of and the services provided by a solicitor and of the cost of providing that service, which was understandable, in the absence of any independent reliable source of information as to the true position. Hence, the announcement of the intended enquiry was welcomed by the profession. In general, the Consultant, understandably points out that it was not part of his purpose to reflect on general national policy in relation to redistributing income from professional people to other occupational groups, or indeed to say how much a solicitor "ought" earn and that he could not act, as he indicates in his own words "as a one man Royal Commission on the Irish legal system". He does however acknowledge that the enquiry, being the first of its kind in this country, has caused many problems to be put to him by the profession which were unfortunately beyond his remit. General increases of 150% in Court costs and other controlled remuneration were sought in May 1975. Later in its formal submission to the Consultant, the Society sought specific increases in specific areas of remuneration. In response to that application and after detailed consideration of the relevant factors, the Consultant has now recommended —

150% increase in District Court Costs 100% increase in Circuit Court costs 50% increase in High Court costs An increase in Land Registry fees

Acceptance of an increased minimum fee in certain Conveyancing transactions.