1 Feabh 2011, 15:02
A proper competitive tendering process for legal services obtained by the State must be introduced in order to reduce the excessive cost to the State of legal fees, a report published today by the Dáil Public Accounts Committee (PAC) has said.
The report examines the system of legal fees paid to barristers and solicitors arising from the audit undertaken by the Comptroller and Auditor General (C&AG) into the Tribunals of Inquiry.
The report finds that up to the end of 2010, the cost to the State of the Morris Tribunal was €57.89m, the Mahon Tribunal €105.6m and the Moriarty Tribunal €41.39 m. The report also gives an estimated final cost of the tribunals. In addition, it outlines the itemised amounts paid to members of the legal profession for their work on the tribunals to date. It finds that five senior councils have been paid more than €5m for their work on Tribunals.
Committee Chairman, Bernard Allen TD said;
“The cost to the taxpayer for these tribunals and other legal services obtained by the State is astronomical. We need to achieve far greater value for money in procuring legal counsel. To accomplish this, competitive tendering should be made mandatory for legal services to the State. This will see a greater number of legal service providers competing for work and lead to lower prices.
Currently, barristers are not asked to tender for their work. The State is the largest procurer of legal services in Ireland with an estimated €500m paid out annually. By reforming the way legal advice is purchased millions could be saved.
Among the report’s recommendations are:
Competitive tendering for legal services by State agencies should be made mandatory
The Department of Finance should direct all Government Departments to comply with its guidelines when procuring legal services from private practitioners.
Restrictive customs and practices in the legal profession should no longer be tolerated and be removed.
The Competition Authority report of 2006 which addresses these restrictive practices must be implemented.
New legislation encompassing the recommendations of the Law Reform Commission is needed to underpin the work of tribunals of inquiry.
The need to replace the current taxing masters system with a transparent system to determine level of fees.
Bernard Allen TD said;
“Some of the amounts paid to legal practitioners on behalf of the State are jarring. The reports of the Law Reform Commission and the Competitions Authority have been lying around for almost five years and there does not seem to be any impetus to process their recommendations.
It is high time that these changes were introduced as the State cannot continue to pay such exorbitant sums for its legal services. The need to be competitive has become a key element of our economic recovery and the legal profession cannot stand aloof from this.”
A full copy of the report is available at Committee Report
ENDS
Daniel English
Oireachtas Communications Unit
01 618 4484
087 6944926
Committee Membership:
Bernard Allen TD, Fine Gael ,(Chairman)
Darragh O'Brien TD , Fianna Fáil, (Vice Chairman)
Michael D'Arcy TD, Fine Gael
Michael McGrath TD, Fianna Fáil
Sean Fleming TD , Fianna Fáil
Brendan Kenneally TD, Fianna Fáil
Niall Collins TD, Fianna Fáil
Olwyn Enright TD, Fine Gael
Pat Rabbitte TD, Labour Party
Jim O'Keeffe TD, Fine Gael
Róisín Shortall TD , Labour Party ,
Ned O'Keeffe TD, Fianna Fái