Lawyers may leave tribunal after fees reduced
Top lawyers may step down from tribunals after legal fees are cut, a senior barrister claimed today.
Tribunal legal teams are to have their fees slashed by almost two thirds to curb the spiralling costs of inquiries under new plans announced by Finance Minister Charlie McCreevy.
But chairman of the Bar Council Conor Maguire said it remained to be seen whether or not senior counsel would continue to work at the long running inquiries on reduced fees.
“Essentially the market dictates what you get. If you want the best you have to pay for the best,” Mr Maguire said.
“It remains to be seen if the calibre of people they want are available at the price they want to pay. You may not be able to attract people on that basis.”
In the planned change Senior Counsel and solicitors will no longer charge daily rates for their work but will be offered a set fee for the duration of the inquiry.
Mr McCreevy said it was necessary to end the multi-million euro burden on taxpayers by containing the cost of legal representation for third parties.
But even with the minister’s cutbacks it is expected the taxpayer will foot a €440m legal bill for all tribunals and inquiries by the end of the year.
Mr McCreevy added however the set wage plan would still leave Senior Counsel earning as much as a High Court judge – seven times higher than the average industrial wage.
“I am strongly of the view that the equivalent of an annual salary is the most appropriate form of payment for legal personnel on tribunals and other forms of inquiry,” he said.
“It is worth noting, in this regard, that the new proposed fee structure for a Senior Counsel will still be more than seven times the average industrial wage,” Mr McCreevy said.
The issue of legal bills was raised at the Mahon Tribunal, into planning corruption in and around Dublin, after former Fianna Fáil Minister Ray Burke lodged an application to have the Government pay his €10m legal bill.
Counsel for the tribunal Des O’Neill SC claimed Mr Burke ran up the legal costs by obstructing the inquiry and was found to have colluded with others to give false evidence.
Mr Burke’s barrister Aidan Walsh SC has argued legal costs should not be result driven and no citizen can bear seven years of legal costs.
Meanwhile, at the Morris Tribunal into Garda corruption in Co Donegal several members of the McBrearty family withdrew from the inquiry claiming they could not afford the legal costs.
But Frank McBrearty Snr faces being subpoenaed, or contempt charges unless he re-engages with the tribunal.
From September 1, 2004, all legal teams – including those of third parties - at new tribunals will be paid a set fee for the entire running of the inquiry.
Daily rates will be calculated on this basis.
The Government, along with the Attorney General and Tribunal chairpersons, will decide on when the new system will be introduced to existing inquiries.
The minister said that it was not possible to gauge the extent of possible savings, however, the new rates would be less than 40% the maximum current rates paid to counsel.
Senior Counsel fees drop from a high of €2,500 a day to €969 a day. Junior Counsel will earn €646 a day, two thirds of the SC wage.
Solicitors will be paid €800 for a daily appearance and €100 an hour for preparatory work.
Labour Party Justice spokesman Joe Costello said the change was too little too late.
“Such changes should have been introduced many years ago. The Government have had plenty of warning about the lengthy timescale and associated costs of the tribunals,” he said.
