Goff Phil: Lawyers and Conveyancers Bill — Third Reading 
Goff Phil: Lawyers and Conveyancers Bill — Third Reading 
[Volume:629;Page:1696] 
Hon PHIL GOFF (Minister of Defence) 
on behalf of the 
 Minister of Justice 
: I move  
That the Lawyers and Conveyancers Bill be now read a third time 
. This bill is a cornerstone of the reforms of legal services being undertaken by this Government. It removes unnecessary regulation from the legal services industry and replaces it with a more efficient regulatory framework that will give the public greater confidence in the legal profession. 
The bill’s purpose is to maintain public confidence in the provision of legal services to protect consumers and to recognise the status of the professions that provide them. The Government has a vital interest in the regulation of the legal profession as the quality of lawyers’ services is critical to justice and to the maintenance of the rule of law. The impetus for reform of the legal profession came from the New Zealand Law Society itself which sought a more responsive regulatory structure than the Law Practitioners Act 1982 provided. The reforms largely follow the model proposed by the New Zealand Law Society. 
I would like to acknowledge the many hours of work that the Law Society has dedicated to the development of this bill and most particularly the patience with which it has awaited its enactment. In particular I mention Ian Haynes who first came to see me as president of the Law Society about this reform when I was Labour spokesperson on justice in the 1990s. That is how long this has been around. I also acknowledge Christine Grice past president of the society Chris Darlow the current president and Alan Ritchie the Executive Director of the New Zealand Law Society and note their tireless efforts to see this bill through to conclusion. I also acknowledge the huge contribution made to this bill by Michelle Vaughan and her team at the Ministry of Justice and the work done by the Chief Parliamentary Counsel Walter Iles QC who is now retired. 
The introduction of the occupation of conveyancers has its origins in the 1997 Conveyancers Bill that I introduced into this House because the then monopoly on conveyancing and scale charges together meant that ordinary New Zealanders were in my view paying far too much for this work. Licensed conveyancers exist in most of the Australian states and in the United Kingdom. Their presence in those jurisdictions has reduced the costs but most certainly has not reduced the quality of conveyancing and the work they have done has been particularly in the residential market. The simple threat of competition has already seen in this country over previous years a marked improvement through lower costs. Consumers will now have the choice of who carries out their conveyancing work for them and as always they will benefit from a market where there is competition rather than a monopoly supplier. 
For the legal profession the bill offers a modern regulatory environment. The federal structure of the statutory district law societies will be dismantled. District law societies can continue to exist as representative bodies offering services to members if members opt to support them. The New Zealand Law Society will become the regulatory arm of the legal profession. It will be charged with developing the rules that govern the practice of law. A similar body will be formed for conveyancers. The societies will have responsibility for practice rules on matters such as professional conduct trust account rules and indemnity insurance. But the rules must be subject to consultation with the profession and will require approval by the Minister. 
This bill will create flexible professional environment for lawyers and licensed conveyancers while at the same time protect the public from negligent or incompetent lawyers or licensed conveyancers. Many areas of work traditionally reserved for lawyers will be opened up to greater competition. Many of the consumers will have greater choice about where and from whom they purchase their legal services. Where previously only lawyers have been permitted to practice either on their own account or in partnerships lawyers and conveyancers will be able to practice in incorporated firms. That will help the two professions to respond to the changing needs of consumers and suppliers in the legal services market. 
The Government has not agreed to calls for multidisciplinary practices and the Law Society itself does not support that. We will however continue to monitor overseas developments. The bill significantly improves the existing complaints and discipline regimes for lawyers. Many criticisms have been made over the years of the current disciplinary system with its focus on professional misconduct rather than providing an appropriate mechanism by which consumers can complain and seek redress. The federal structure of the New Zealand Law Society itself means inconsistencies about the way in which complaints have been dealt with across districts. 
 The bill will provide a far more efficient and independent complaints process. The focus is on fairness and transparency for all parties. The most significant reform in this area I believe is the appointment of an independent legal complaints review officer who will assume an ombudsman-like role in the hearing of complaints against lawyers and conveyancers. 
This is an important bill both for the public and for legal services providers. The introduction of licensed conveyancers is significant. The new occupational framework for lawyers and conveyancers is an excellent example of co-regulation at work. It combines the benefits of industry self-regulation—that is flexibility innovation and industry buy-in—with sufficient regulatory oversight to maintain consumer confidence. The reforms contained in the bill are fundamental and overdue. 
I am pleased to see that there has been very strong support for the bill across the House. Again I thank the Law Society for its forbearance and for its efforts to ensure that we now have this new structure covering the activities of lawyers and of the new profession of conveyancers. I commend the bill to the House.