Campaigners for the reinstatement of the ban on solicitors paying referral fees were celebrating last week after the Law Society annual general meeting (AGM) voted to hold a postal ballot of the whole profession on the issue.


The AGM passed - by 60 votes to 44 - a motion deploring the original decision to lift the ban taken by the Society's council in December 2003, and calling on the council to reintroduce it.



The campaign was co-ordinated by Tim Readman, council member for sole practitioners, who told members that the lifting of the ban had provoked widespread anger. 'How this sordid state of affairs can be said to be in the public interest defeats me,' he argued.



The council had urged members to vote against the resolution, pointing out that it had carried out a number of consultations - most recently in July 2003 - and suggesting a ballot 'would reflect poorly on the Society's credibility as a regulator acting in the public interest'.



Philip Hamer, council member for Yorkshire, who had proposed the original lifting of the ban, told the AGM that referral fees are 'clearly a very divisive issue. The Office of Fair Trading has been on our case for a number of years, and had indicated that they might use their powers to call in our rules [as anti-competitive]'.



Mr Hamer had asked the AGM to wait until 12 months after the lifting of the ban, when - as agreed with the Master of the Rolls, Lord Phillips, who was himself reported to have doubts about removing the ban - its impact would be reviewed.



No date has yet been set for the holding of the ballot, which could cost up to £100,000. The results would not be binding on the council, but would be seen as persuasive.



Law Society chief executive Janet Paraskeva said: 'The AGM has asked council to consider reimposing the ban and a ballot of the profession will be held to glean their views. The Master of the Rolls would have to be consulted about any further changes to the rule.'