COMPETITION: legislation ends the exclusive right of lawyers to carry out conveyancing


New Zealand has passed legislation to increase competition in its legal services market in a move that could herald the start of 'Tesco law' in the country.



Denis McNamara, a partner at Auckland and Wellington firm Simpson Grierson, told delegates at the Inter-Pacific Bar Association mid-year council meeting in London last week that the Lawyers and Conveyancers Act 2006 establishes a new statutory framework for the profession in New Zealand.



The Act ends the exclusive right of lawyers to carry out conveyancing work with the creation of a profession of licensed conveyancer, able to work in competition with lawyers.



It will establish certain 'reserved areas of work', which may be carried out only by lawyers, including giving legal advice in relation to court proceedings and appearing as an advocate before a court.



However, it will allow non-legal organisations such as accountancy firms, banks, Internet service providers and supermarkets to offer their customers a range of services including advice on contracts, tax and wills, that fall outside these reserved areas.



The Act does not go as far as the Legal Services Bill proposed for England and Wales, and rules out multi-disciplinary partnerships.



It also replaces the award of Queen's Counsel with the new 'senior counsel' appointment, open to lawyers in all forms of practice, not just barristers, and ends compulsory membership of the New Zealand Law Society, which will nevertheless continue to control and regulate the legal profession.



Alison Hook, head of the international department at the Law Society of England and Wales, welcomed the introduction of the Act, which she said would make it easier for UK solicitors to practise in New Zealand.



'It also includes developments which link in with the Legal Services Bill here and which we can use in our ongoing representations as the Bill passes through Parliament - most notably the central role given in regulation to the fundamental obligations of lawyers,' added Ms Hook.



Catherine Baksi