Worth Richard: Lawyers and Conveyancers Amendment Bill (No 2) — Third Reading 
Worth Richard: Lawyers and Conveyancers Amendment Bill (No 2) — Third Reading 
[Volume:648;Page:17635] 
Dr RICHARD WORTH (National) 
: 
 Mr Jones is certainly the toast of the day for his dogged pursuit of an important issue that he was simply not prepared to let go. The Government was eventually persuaded that remedial action was required which saw Supplementary Order Paper 216 dated 29 July 2008 in the name of the Hon Annette King form part of the Lawyers and Conveyancers Amendment Bill (No 2) which of course we now see in its final stage. The third reading of this bill which National supports is really the final brick in the wall. The bill enables all the issues touching the legal profession that have been the subject of the substantive legislation to now be resolved. 
The bill is of course part of a greater plan because strangely the Lawyers and Conveyancers Act 2006 is not yet in force. There are not too many illustrations on the statute book of legislation that is passed but not brought into effect until after such a substantial delay. There are a number of reasons for that delay—primarily centring round the myriad of rules and regulations that were required as part of the delegated legislation suite to be brought into place. So it was that the Regulations Review Committee last Wednesday looked at a number of those rules and regulations. The committee intends to follow a number of issues arising from its deliberation on those delegated materials. 
As I have said this third reading and the passage of this legislation is very much part of a greater plan because the substantive legislation affects every practising lawyer in this country—it changes how lawyers are regulated and how they are to practise. No longer will a lawyer get a practising certificate from a district law society; it will be secured directly from the New Zealand Law Society and a central register of lawyers will be maintained by the society. The practising year is to change from 1 February to 31 January in any period to 1 July to 30 June. Completely new rules have been in written in respect of the Lawyers and Conveyancers Act requirements reflecting the client-focused orientation of the new legislation and its associated rules and regulations. There are new rules that provide a reference point for considering complaints made to the new lawyers complaints service which will be run by the New Zealand Law Society and there are new rules to cover a whole host of issues ranging from fees billing arrangements complaints procedures indemnity cover to much more besides. Law firms will be able to incorporate and lawyers will be able to sell real estate. 
The substance of this bill was about dealing with a particular class of in-house lawyer—that is the lawyer employed by a union organisation or an employers’ association—and the intent was to regularise a practice that had built up over a number of years whereby the lawyers in those entities gave legal advice of a strictly constrained type. When this bill was initially introduced those constraints were not present. But the effect of Supplementary Order Paper 216 is to put those constraints back in place and in effect preserve the status quo position. Now in respect of the lawyers in those entities they will be able to give a range of advice to members of those organisations in those members’ capacities as members employers or employees. 
The effect of the substantive law change is not to be underestimated. For the first time in legislation the fundamental obligations of lawyers are spelt out. These issues in the past have really been the subject of common law rules conventions and law society provisions. The primary obligation which is spelt out in the substantive legislation is the obligation to uphold the rule of law and facilitate the administration of justice in New Zealand. There are other matters. There is an obligation to be independent in providing regulated services. There is an obligation to act in accordance with fiduciary responsibilities. There is an interesting dichotomy whereby there is a primary obligation owed to the court—lawyers are officers of the court—without of course compromising the relationship that exists between the lawyer and the lawyer’s client. 
National commends this legislation as it moves to its final stage. We simply note that the effect of the Lawyers and Conveyancers Act with this embellishment on it represents a period of convulsive change for the law profession as from 1 August—tomorrow.