NEIL ROSE MEETS LORD FALCONER, WHO SETS OUT THE CASE FOR A MIXED MARKET OF LEGAL SERVICES

Lord Falconer of Thoroton QC has taken on his new role as Secretary of State for Constitutional Affairs with one immediate advantage: he is not Lord Irvine.

Nobody doubted the intellect of the previous Lord Chancellor, but he was no man of the people.

His successor, known to all as Charlie, is highly personable, informal and accommodating, keeping the Slovakian minister of justice waiting while the Gazette's photographer takes just a few more shots.

He certainly finds himself in the spotlight - and not because of the furore over the reshuffle that took him to the new Department for Constitutional Affairs and the already tired recitation of his past as Tony Blair's flatmate and then Dome minister, set to become as well rehearsed as Lord Irvine's taste in wallpaper.

Through first unveiling a raft of constitutional reforms, and then setting in motion a potential revolution in the provision of legal services, in which he says 'everything's up for grabs', Lord Falconer has put the law centre stage to a degree not seen for many years.

And he will need all his charm to deal with a worried profession facing an uncertain future.

So, how would he react to the regulation review by banker David Clementi were he still at the bar? 'This is not bad for the lawyer,' he asserts.

'The fact that a lawyer could, for example, provide services while employed by a building society, the fact that a law firm could be a corporation, the fact that a lawyer could provide services through a large chain of insurance companies or even high street shops, is good for the lawyer because it permits them to provide services in a way the consumer wants.'

He says that regulatory reform is a 'very big opportunity' for the profession.

He also sees liberalisation of practice as increasing the opportunities for people to become lawyers.

Lord Falconer, who is 51, is not easily drawn out.

Of course, his reforms are either out for consultation or set to be fleshed out by Mr Clementi, but six years as a politician seem to have left him cautious about expressing precise opinions in a way that may not have won much favour when he was on his feet in the High Court.

He says the regulatory regime 'to some extent has not kept up with what the market is looking for', but will not give his own opinion on self-regulation beyond saying that 'if self-regulation produces the best result in terms of propriety and service in the public interest, then let's continue with self-regulation'.

It will be for Mr Clementi to determine that.

Many high street solicitors fear that deregulation will leave them unable to cope with the competition of banks, building societies and others offering legal services.

Lord Falconer praises the 'very, very valuable service' they offer, but says the network of small, independent law firms across the country should not be regarded as set in stone.

He says: 'There are other places and other ways in addition to the current system in which legal services will be provided.'

He clearly envisages a mixed economy.

'There will be a place for a whole range of providers.

The proposals we are making for an open-minded review of how you regulate the market are not designed to prevent those solicitors who are meeting a need from continuing to meet that need.

As far as solicitors are concerned, it will give them other opportunities as well.

'Markets have been opened up in the past in legal services, for example in relation to conveyancing, and what that has led to is an improved service in terms of price in many cases, provided by existing solicitors but alternatives as well.'

One area where more immediate reform seems likely is the Law Society's complaints-handling system.

It is thought the Lord Chancellor will shortly invoke his power to appoint a Legal Services Complaints Commissioner - who will be able to demand information, set targets and fine the Society for poor performance.

But Lord Falconer only comments that he will make a separate announcement shortly.

Lord Falconer has already made some noise over making the judiciary more diverse, but he says the profession must also take up the challenge.

'I would like to see more disabled, women, black and minority ethnic people being more successful in the profession,' he says.

It does not appear that the change in minister will bring any greater joy for legal aid lawyers.

Lord Falconer recognises that there are 'important financial issues' he has to consider in relation to legal aid, and that maintaining national coverage is a matter on which he needs to focus.

But he will not be drawn on the basic question of whether rates will rise.

'I don't want to create any sort of expectation,' he says, not a phrase to lighten practitioners' hearts.

The government is often accused by lawyers of ignoring the impact its criminal justice reforms will have on the demand for legal services.

This is a charge Lord Falconer, previously criminal justice minister, strongly refutes.

'We are very conscious right across government that if you bring defendants to court to be tried for particular criminal charges, which is what we hope to do because our aim is to bring more cases to justice, then that will require more representation,' he says.

So, will there be more money? He replies carefully: 'There is no escape from a need to provide legal aid for those additional criminal cases of sufficient seriousness which would merit [it].'

These are busy times in the law and busy times for Lord Falconer.

If Lord Irvine was the bad cop then Lord Falconer is the good cop, and that is the one you always have to look out for.