Society of Conservative Lawyers attacks price competitive tendering
PCT could lead to 'the creation of anti-competitive monopolies'
The Society of Conservative Lawyers has attacked justice secretary Chris Grayling's plans to deliver criminal legal aid by price competitive tendering (PCT).
In a paper on the legal aid consultation, the society said it had "grave reservations" about the introduction of block contracts, which it described as "unnecessary and unworkable".
According to its website, the society has around 400 members, "many of whom are eminent silks and leading solicitors". Its president is the former Lord Chancellor, Lord Mackay, and its chairman Lord Hunt of Wirral.
Referring to the title of chapter four of the MoJ's consultation paper, 'Introducing Competition in the Criminal Legal Aid Market', the society said: "As Conservatives, we believe that competition is a good thing. However, it already exists, with solicitors competing for work from clients and barristers competing for work from solicitors who can choose to go elsewhere if they are unhappy with the service which is provided.
"We fear that the introduction of 'competitive tendering' for block contracts for the provision of criminal defence services, giving citizens no choice in whom they instruct to represent them could lead to the creation of anti-competitive monopolies."
The society urged the MoJ to consider "with great care the concerns we have raised in respect of block contracts and fee reductions" and warned that otherwise "the damage is likely to be swift and real."
The paper's authors, QCs Oliver Sells and Andrew Warnock, and barrister Hamish Common, warned that without competition in the criminal justice system, incentives changed.
"A company seeking (as normally speaking it should) to maximise its return upon investment may well cut down the administration costs which is a major driver of the Ministry of Justice consultation paper, but it is unlikely to stop there.
"First, it will wish to pay its litigators and advocates as little as possible; second, it will also seek to maximise its variable income from the Ministry of Justice in graduated fees and Very High Cost Cases (VHCC).
"Its employment practices may not be tempered by the quality of service and its maximisation of graduated fee/VHCC income but rather by what the professional regulators will let them get away with."
However, the society said it agreed with many of the MoJ's other proposals and backed the introduction of a residence test for civil legal aid.
They proposed a ten point plan to cut waste and reduce costs in the criminal legal scheme, including increasing the powers of magistrates' courts and using higher commercial court fees to help fund legal aid.
In a separate development, Attorney General Dominic Grieve QC distanced himself from the legal aid cuts.
In a letter to panel counsel, Grieve said: "From regular attendance at Bar Council meetings I am well aware of the deeply and sincerely held concerns the Bar has on the effect these proposals, if implemented, will have.
"I recognise that these concerns go well beyond the personal, financial implications to individual members of the Bar - serious those these may be - but extend to the potential impact on the quality of the justice system this country is rightly proud of."
The Attorney General concluded: "Policy in this area is owned by the Lord Chancellor and not me. But I have already spoken to the Lord Chancellor and will continue to draw to his attention the concerns that have been expressed to me.
"I will endeavour to ensure, as far as I can, that the decision he reaches in due course is a fully informed one."