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Legal Services Bill [HL]

If we look at how the Bill is constructed, we can see how the Law Society, for example, would become a licensing authority and work with the possibility of an alternative business structure with company X. I should just say that although people have used Tesco as an example it is my understanding that Tesco has no desire to be involved in this, so we will not pick on it any more—and I apologise to Tesco, through this Committee. Let us say that company X was involved in the provision of lots of different services relevant to the retail sector and wished to invest in and join up with a local legal firm to develop its business, creating an alternative business structure—something new. In so doing, the company would apply to the licensing authority to be allowed to do so, and the authority would look at what was being proposed, the services that were currently offered and about to be offered and the way in which it would affect the locality. I agree with my noble friend Lord Whitty and others that it is of crucial importance in rural communities to ensure that this works effectively and well. The authority would ensure that the principles of the regulatory objectives were adhered to and then would or would not grant the licence with or without conditions on top of it. In so doing, it would be mindful, too, of what else was available in that locality. That is how I see the process working—and that is an appropriate relationship between the two parties. Not everyone will be offered the opportunity but, when they are, because it is clearly going to be a good opportunity for everyone, they should be allowed to go ahead.