Chamber and committees

Would the member acknowledge that I have recognised the point about the ministerial powers and am engaging to remove them from the bill? I have written to the committee about that.

Would the member acknowledge that ministers have had a role in legal regulation in Scotland since 1990? In 2007 and 2010, Parliament placed further functions on Scottish ministers in respect of legal services regulation. Having said that, I understand the concerns that have been raised and I will be lodging amendments. I simply note that there have been ministerial powers previously.

I will come to that further on in my speech, if I may.

A regulator will also be required to create a register of all its members that is “free” and “accessible” to the public, thereby enabling consumers to access useful information about legal service providers. A total of 94 per cent of respondents to our consultation on the bill agreed that it was “important” that the regulatory framework should

“Enable access to justice including choice and diversity”.

The bill includes proposals to increase access to justice by removing restrictions on third sector organisations directly employing solicitors to support their clients in court proceedings. Scottish Women’s Aid welcomed that measure, advising that it

“will assist ... in securing dedicated and innovative provision of domestic-abuse competent legal services for women, children and young people experiencing domestic abuse.”

Through the bill, we are introducing regulation of legal businesses, which will provide greater powers of oversight for regulators and additional protections and consistency for consumers. In addition, the bill will ease ownership requirements for alternative business structures and allow innovation, such as community ownership of legal businesses, which will benefit the legal sector in attracting investment and in succession planning. Those measures are intended to support and promote sustainable legal services that benefit citizens. Some 93 per cent of respondents to our consultation supported those principles.

The bill will also protect members of the public against wrongful use of the title “lawyer” by people who seek to deceive consumers and imply that they are fully regulated, with the protection that regulation affords.

The bill will expand the remit of the statutory consumer panel and give it a role in undertaking research to provide good-quality evidence-based advice to the sector in order to ensure that decisions are shaped around the needs of the various consumers of legal services.

I acknowledge that the bill has attracted differing views from stakeholders, as did the consultation ahead of the bill. We have had to strike a balance with those differing views as we aim to modernise the regulatory system.

Does the member acknowledge that I have been advised that it would be inappropriate to share the amendments ahead of stage 2? Does he agree that I have committed that, at stage 2, I will share the amendments with the committee?

I believe that, if we all work constructively across the chamber, we will end up with a bill that is appropriate, proportionate and effective. I therefore urge the Parliament to agree to the principles of the bill.

I have a lot to get through, so I will come back to the member if I have time.

Regarding the complexity of the Scottish legal complaints system, it is important that we highlight what the Scottish Legal Complaints Commission has said in the briefing that it sent to all members:

“the Bill is a very welcome and significant step forward in a number of areas, and we now want to see it delivered and implemented to realise those benefits for consumers and lawyers alike”.

I turn to Katy Clark’s comments regarding the sections where ministerial powers will be removed from the bill—they are sections 5, 8, 20, 29, 41, 35 and 49. In recognition of the comments from the senior judiciary, we intend to lodge amendments that will transfer the powers in sections 19 and 20 to the Lord President and to continue to explore with the office of the Lord President what further adjustments will be made.

Stuart McMillan has done a lot of work on the topic of McClure Solicitors. I am aware of the issues that a number of families are facing as a result of that firm going into administration. Although I cannot comment on individual cases, the Scottish Government has taken proactive steps to strengthen the legislation in respect of legal regulation, which will help to mitigate the effect of such situations in the future. If a client is dissatisfied with the service or conduct of a Scottish solicitor, they have the right to complain through the Scottish Legal Complaints Commission.

I return to a few points that Liam Kerr raised during the debate regarding the Law Society, I think in an intervention on Karen Adam regarding some of the powers that it thought had been left out of the bill. I can confirm that we will be introducing amendments at stage 2 that will make many of the changes that the Law Society has been seeking, especially regarding the conduct complaint process. We are working very closely with the Law Society on that.

Liam Kerr was also asking for examples of how the powers in sections 19 and 20 of the bill might have been used previously. The current lack of transparency in relation to legal services regulation makes it difficult to say when such powers may have been used previously. It may be helpful to reflect on the comments that were made to the committee by Tracey Reilly of Consumer Scotland. She highlighted that, if the powers were removed entirely, primary legislation would be the only recourse if the system was not delivering the regulatory objectives.

For my part, I will continue to engage with stakeholders and members to address any concerns that are raised with me as we go through the parliamentary process. I am committed to working constructively with the committee and members ahead of stage 2, and my door is always open to anyone who would like to discuss the bill.

As I have said, there were polarised views going back to 2015 and from the Scottish Government’s consultation. Members will note from the briefings about stage 1 that have been sent to MSPs in the past few days that the Scottish Legal Complaints Commission, Citizens Advice Scotland, Consumer Scotland, the Competition and Markets Authority and the Law Society of Scotland all welcome stage 1 and urge the Parliament to agree to the general principles of the bill. I think that there will be collaborative agreement on aspects of the bill, moving forward.

Following the introduction of the bill, and having carefully considered the responses to the committee’s call for views—

I am sorry; I have read that paragraph.

The provisions are only one part of the bill and are based on existing legislation. Nonetheless, I have sought to address those concerns, and my officials have been working closely and collaboratively with stakeholders and, in particular, the Lord President’s office and the Law Society of Scotland.

The bill has received much support during stage 1, and I would like to note some of that support, for members in the chamber today. Consumer Scotland welcomed the fact that the bill will require legal regulators to exercise their regulatory functions in a manner that is compatible with consumer principles. I was also pleased to read the Law Society of Scotland’s comments to the Equalities, Human Rights and Civil Justice Committee: it has said that the bill contains many important reforms.

The committee also heard broad support for proposals in the bill that will reform the legal complaints system. The Scottish Public Services Ombudsman, Rosemary Agnew, said of measures in the bill that they enable

“the development of best practice.”—[Official Report, Equalities, Human Rights and Civil Justice Committee, 14 November 2023; c 23.]

As I said, in developing the bill, the Scottish Government sought to ensure that it strikes the right balance between the various interests of stakeholders. The committee’s stage 1 report recognised that and raised a number of important points. I have addressed those in my written response, and I will continue to update the committee after further consideration of the recommendations, ahead of stage 2.

The bill will provide a modern and forward-looking regulatory framework for Scotland that will best promote competition, innovation and public consumer interest in an efficient, effective and independent legal sector, while placing the consumer public interest at heart.

I move,

That the Parliament agrees to the general principles of the Regulation of Legal Services (Scotland) Bill.

I welcome the opportunity to open the debate on the general principles of the Regulation of Legal Services (Scotland) Bill.

I thank the Equalities, Human Rights and Civil Justice Committee, the Delegated Powers and Law Reform Committee and the Finance and Public Administration Committee for their careful and considered scrutiny of the bill, and I thank all those who submitted views and gave evidence at stage 1. I very much welcome the lead committee’s stage 1 report, in which the majority of members agreed with the general principles of the bill.

The current legislative framework that underpins regulation of legal services and complaints handling is complex and dated. The bill presents a modern regulatory framework that is designed to promote competition and innovation, while improving the transparency and public accountability of legal regulation and the legal complaints system, and placing the public and consumer interests at its heart.

The bill sets out the regulatory objectives that must be complied with as legal regulators exercise their functions, including consideration of consumer principles, better-regulation principles and human rights principles. It is a highly technical bill that builds on existing legislation from 1980, 1990, 2007 and 2010.

The bill proposes a number of significant and positive changes to the legal services regulatory framework in Scotland, so I will take the opportunity to outline the many benefits that it will bring. It will streamline the legal complaints system, which many stakeholders have called for, thereby making the process faster and simpler for the consumers and the legal practitioners who find themselves involved in it. That includes introducing a new ability to make complaints against unregulated legal services providers, which will increase consumer protection.

The new regulatory framework will introduce greater transparency and accountability for our legal services regulators, in order to deliver a framework that maintains public trust and ensures that regulators are operating their regulatory functions independently of any other function.

Will the member take an intervention?