In the most sweeping legal reforms this century, the government this week announced legislation that would widen rights of audience and create new bodies to administer public funds for civil and criminal work under the aegis of a Legal Services Commission (LSC).It was confirmed in the Queen's speech this week that an Access to Justice Bill would be presented to Parliament at the first opportunity.

It is understood that a draft Bill and white paper could be published together as early as next week.If enacted, the Bill would complete the transition from a demand-led system of public legal funding to one in which lawyers are contracted to provide services within a tightly-controlled budget.Although higher rights of audience would be extended to all lawyers - including Crown Prosecutors - state-funded Crown Court advocacy would be reserved for 'specialist' criminal advocates.

It is understood that the government expects almost all specialists to be barristers in the first instance, although solicitor-advocates will not be explicitly excluded.Both defence solicitors and specialist advocates would enter into contracts with a new funding agency, the Criminal Defence Service (CDS).

The CDS would also have powers to employ salaried public defenders, which the government anticipates might be used in areas where there were not enough private defence solicitors to run contracts.The Legal Services Commission (LSC) would replace the current Legal Aid Board.

As well as overseeing the CDS, the LSC would run a Community Legal Service, which will be the subject of a detailed consultation paper to be published in January 1999.The Community Legal Service would be responsible for working with the advice and not-for-profit sector as well as setting local priorities and funding civil contracts with solicitors and others.

Priorities for funding would include social welfare and child cases.The existing merits test would be replaced by a flexible 'funding assessment', which will question whether cases should be dealt with through mediation or whether they are suited to conditional fee agreements.

The test will be whether a 'reasonable person' would fund the action from their own pocket.It is understood that the government has scrapped plans to set up a public interest fund for cases that would not meet a tough merits test, on the grounds that it was unnecessary under the new flexible test.

It was not clear this week whether the Bill would remove personal injury cases from the scope of legal aid, although it could include powers to do this later without further primary legislation.Other changes under the Bill include reforming the jurisdiction and constitution of the civil division of the Court of Appeal and restructuring the magistrates' courts system.Solicitors gave a mixed reception to the reforms.

Law Society President Michael Mathews said they would 'be judged on whether they can deliver real choice, good quality services and genuine local access to poorer people'.

But the Society was concerned that the contracting proposals could lead to 'rationing by the back door'.

All competent legal aid firms should be allowed to do legal aid work in the interests of client choice, Mr Mathews argued.A Society spokesman added that it would be 'perverse' if, after op ening up competition in advocacy services, the government closed 'the door to a key sector of the market' by ensuring that only barristers were classed as 'specialists'.Franklin Sinclair, chairman of the Criminal Law Solicitors Association said the CLSA had a 'massive fear' that contracts would inhibit solicitors from pursuing 'unpopular' cases, such as actions against the police.

He called for 'substantial safeguards' to ensure such solicitors did not become 'personae non grata'.

Mr Sinclair added that employing public defenders could lead to 'bureaucracy and inefficiency'.Heather Hallett QC, chairman of the Bar Council, warned that the US experience of public defenders was 'chilling', led to a 'second-rate system of justice' and deterred lawyers from 'fearlessly asserting their client's case'.QUEEN'S SPEECH: KEY LEGISLATION-- Financial Services: legislation 'to improve the regulation of financial services and markets'.-- The Internet: legislation 'to promote electronic commerce and start modernising the law'.-- Criminal justice: a Bill 'to modernise the youth courts and to give greater protection for vulnerable and intimidated witnesses in criminal cases'.-- Disability: the establishment of a Disability Rights Commission 'to assist disabled people in securing comprehensive civil rights'.-- Local government: legislation 'to secure delivery of high quality local services on a sound financial footing'; this will involve replacing compulsory competitive tendering with the Labour concept of 'best value'.-- Immigration and asylum: a Bill 'to modernise the law on immigration and asylum, including reform of the appeals system'.-- Freedom of information: a draft Bill will be introduced for 'pre-legislative scrutiny in both Houses'.EXCLUSIVE CONTRACTING TIMETABLE:-January 2000: Civil advice and assistance, all family work.By end of 2000: All criminal advice and assistance .April 2001: Civil non-family certificated work.By end of 2003: All criminal defence services, including advocacy.