HC Deb 14 March 1994 vol 239 cc616-7
39. Mr. Llwyd

To ask the Parliamentary Secretary, Lord Chancellor's Department how many representations he has received from legal practitioners, the Law Society and the Bar Council regarding the freezing of legal aid rates.

Mr. John M. Taylor

The Department has to date received about 20 letters from solicitors and local law societies expressing concern about legal aid rates. The Law Society and the Bar Council are consulted when fee rates are reviewed and have expressed similar concerns.

Mr. Llwyd

Does the Lord Chancellor's Department realise that growing numbers of solicitors' firms are now going out of legal aid practice altogether and that this sad fact, coupled with last year's savage cuts in the green form scheme, has resulted in tens of thousands of people in Wales, England and Scotland being deprived of access to legal advice and assistance?

Mr. Taylor

There is no evidence that legal aid fee rates are inadequate to allow solicitors to continue to undertake legal aid work. Since 1988–89, the proportion of solicitors' offices in England and Wales that received payment for legal aid work has increased from 68 to 82 per cent.

Sir Ivan Lawrence

Is my hon. Friend aware that, if the Government were to do more to encourage private insurance in litigation cases, there would be less pressure on the legal aid fund and less need to freeze legal aid rates?

Mr. Taylor

My hon. and learned Friend should know that expenditure on legal aid this year is expected to rise by 12 per cent. The Lord Chancellor announced that he will be increasing all legal aid income eligibility limits by 3.8 per cent. and the green form limit by 15 per cent. He is also abolishing the means test for ABWOR—assistance by way of representation—for mental health review tribunals. Those measures prove the Government's continuing commitment to the legal aid scheme. Legal expenses insurance certainly has a role to play, but the market must show itself willing to participate. Progress in that respect seems to be slow.