MacAskill seeks Scots solution to law reform

MINISTERS insisted yesterday they would not be pushed into introducing full competition into Scotland's law services, despite a call by the UK's competition watchdog to lift restrictions.

The Office of Fair Trading has recommended current rules on how legal services are provided be reformed to open up the profession to competition from new providers, including high-street banks and supermarkets.

Kenny MacAskill, the Justice Secretary, has three months to formally reply to the OFT but yesterday his spokesman said that, while the minister accepted the current situation could not continue, he would not just follow the OFT's decision.

Instead, Mr MacAskill wants to work out a solution with the profession in Scotland, not have a decision imposed on him.

Law services in England are being deregulated and the OFT believes Scotland should go the same way.

But the Executive spokesman said Mr MacAskill did not believe it was right just to follow the English example; instead, he wanted a "Scottish solution".

The spokesman said: "The Justice Secretary has already made clear that the status quo is not an option. However, he is equally insistent that he does not see any point in the profession blindly following the approach of the profession south of the border.

"We are looking for the Faculty of Advocates and the Law Society to help design distinctively Scottish solutions."

Douglas Mill, chief executive of the Law Society of Scotland, also took a cautious approach, saying he wanted to develop an intrinsically Scottish solution.

Mr Mill said: "The Society wants to see Scotland's legal profession thrive in today's global market. What we must ensure, though, is that Scotland seeks its own solutions and that access to justice and protection of the public remain core."

Colin Gray, managing partner of McGrigors LLP, one of the country's biggest law firms, welcomed the OFT's ruling, claiming that, if implemented by the Executive, it would allow ambitious firms to grow.

"Such liberalisation will enable providers of legal services to gain access to more capital, attract and retain talent and develop new service lines," he said.

But Bill Aitken, the Conservatives' justice spokesman, warned that the changes might result in big businesses "muscling in" and squeezing out smaller firms.

"These measures will cost more, reduce rather than increase choice and result in a loss of legal expertise," he said.

And he added: "I urge the new Scottish government to resist these plans."