DEBATE: members vote against rescinding December decision and postal ballot

The Law Society Council last week stood firm on its decision to allow referral fees and rejected an attempt to overturn it and force a postal ballot on the issue.

The council voted 44-34 against rescinding its December decision, and 47-31 against a postal ballot.

A motion to reinstate the ban was brought by Birmingham representative Derek French, who said said he was 'vehemently opposed' to referral fees.

He said they did not serve the public interest because they would drive up costs.

John Holder, who represents Kent, told the council that he regretted having voted for referral fees.

He had since seen letters from firms offering them to doctors, physiotherapists and others.

'These are letters which can only bring the profession into disrepute,' he argued.

Michael Garson (residential property) said that 76 of 85 respondents to a letter he sent to members of the property section came out against referral fees.

At the council meeting, it was said that several local law societies were strongly opposed to referral fees - they included Hertfordshire, Bournemouth, Dorset and the Southern Area Association of Law Societies.

However, supporting the lifting of the ban, Patrick Allen (the Association of Personal Injury Lawyers) said the debate 'fills me with complete despair'.

Reversing a decision which had brought clarity to the situation would 'show the council to be in disarray', he maintained.

Mike Williams (civil litigation) said that 'the logic of having transparency...

is infinitely better', while Richard Hegarty, chairman of the compliance board, said the new rule would be much easier to enforce.

Mr French said his local law society would consider calling a special general meeting (SGM) if the ban was not reinstated, with the aim of triggering a postal ballot of the entire profession.

Speaking after the debate, Birmingham Law Society president Diane Benussi said calling a SGM may be an option, but it was not currently policy.

Opposing a ballot, the other Birmingham member, Malcolm Fowler, told council the profession has been consulted on the issue before and the results have proven inconclusive.

Bristol Law Society president John Blackwell told the Gazette: 'People [in Bristol] realise it's such a fraught issue that they would be in favour of a referendum, without any doubt.'

Paul Boucher, president of Manchester Law Society, said solicitors in the city were split on the issue, but it would not push for a postal ballot.

Neil Rose