Competition by private lawyers for Attorney-General’s Department services has been more restricted and will be introduced a year later than many in the private profession had hoped.
However, the Attorney-General, Michael Lavarch, says that 75 per cent of the non-policy legal work of Government departments and agencies will be open to private competition from July 1, 1995.
The private profession is to be excluded from litigation and policy legal work. Some private lawyers say they can understand the policy and Cabinet exclusion, but litigation is the most interesting work.
The profession has argued for widespread competition by July 1, 1994. A Department of Finance-Attorney-General’s review has now put that back to July 1, 1995, and narrowed the scope of work available for competition.
The changes were announced in a statement issued late on Friday.
A further change that will lessen competitive pressure was announced in the Budget. From July 1, legal costs do not have to be quarantined in departmental accounts but can be included in general running costs.
Legal costs had been quarantined and stated separately since July 1, 1992, when Attorney-General’s legal advice to departments was charged on a user-pays basis. Departments were given extra funds to pay for legal costs, but the idea of a separate line item was so that costs could be monitored.
It now means that when competition even in a limited form comes in 1995, it will be difficult to work out its effects on costs.
In the statement, the Attorney-General, Michael Lavarch, said, “”Charging for legal services has had a significant impact on use by departments and agencies. They are now far more aware of the real cost of legal services and the value obtained by early involvement of lawyers in developing policy and in public administration.”
Legal services to departments after July 1, 1995, will be in three categories: no charge-no choice; charge-choice; and charge-no choice.
In the first is: cabinet advice, policy within Attorney-General’s; international law; drafting; prosecutions.
In the second is: general legal advice such as administrative law, statutory interpretation, settling minor claims, some contracts, work in tribunals.
In the third is: constitutional advice, litigation in the courts that has Commonwealth involvement, statutory interpretation involving more than one department and government-to-government work.
The legal firm Sly and Weigall welcomed the announcement saying major law firms “”are able to provide a significant depth of Australian and international commercial experience.”
However, others in the private profession say that while any competition and opening up to the private sector is welcome, the statement did not go far enough. They say the Attorney-General’s Department is keeping the best work for itself and is keeping more work for a longer period than earlier expectations. And this comes at a time when the Government is urging competitive reform on the private profession in the wake of the Trade Practices Commission’s report.
The profession cannot present a united view because the Law Council represents both public and private lawyers. Some large private legal firms are concerned about coming out publicly for fear of losing potential government business.
In a related development, the Attorney-General’s advertised at the weekend for a Manager of Marketing Operations for the Attorney-General’s Legal Practice at a salary of $98,000.