Treasury Solicitors Department stretched as salaries fail to entice needed expertisePUBLIC SECTOR: Government lawyers to gain commercial freedom to compete betterThe Treasury Solicitors Department (TSD) the main provider of legal services to the government has done a high-quality job cheaply, but now may be more fully stretched than is sensible or desirable, a major review has concluded.

The first stage of a quinquennial review of the 200-lawyer department said that although the TSDs existence is valuable and justified, it is not achieving its full business potential, bearing real risk without all the means to respond or, where successful, to enjoy the benefits.

Stage two of the review is currently underway and will consider how the agencys performance can be enhanced and improved.

Clifford Chance partner George Staple QC, who chairs the steering committee overseeing the review, said the TSD would become more commercial as a result.The report highlighted the importance of the TSD maintaining the ability to attract high-quality lawyers, despite pressure on the agency to reduce costs.It said the TSDs focus has shifted to cost reduction and away from maintaining or enhancing the quality or speed of service at some cost to the organisation.

Private practice lawyers who deal with the government sympathised with the TSDs plight.

Geoff Haley, chairman of the International Project Finance Association and a consultant at KLegal, said: The salary scales are too low to attract the necessary talent and expertise to expand.The agency hopes to be more proactive in developing its practice and secure additional public sector business, which it currently lacks the resources to undertake, in competition with private practice.However, Simon Allan, head of finance at Berwin Leighton Paisner which is the biggest private provider of legal services to the government pointed out that the TSD operates in a completely different legal environment compared to private firms.

They deal with sensitive government issues and combat problems which external firms cannot contribute to.The report said performance targets mean the agency lacks the freedom and flexibility that would enable it to develop the business more fully.Mr Allan said that when dealing with the agency he has always been impressed, a view shared by 99% of clients in a 1999/2000 customer satisfaction survey.A spokesman for the Attorney-Generals office said it is content with the way the report was proceeding.Andrew Towler