The Law Society has opened its first North-East office, serving more than 2,600 solicitors. Deputy Business Editor Kate Bowman talks to society president Kevin Martin about the shake-up of legal services, legal aid and the advantages of having an office in the region.

THE Law Society is the professional body representing about 116,000 solicitors in England and Wales.

From its newly-opened Newcastle base, the organisation will support solicitors from Berwick, in Northumberland, to Northallerton, in North Yorkshire, and work in partnership with smaller Law Society groups across the region, including those in Sunderland, Hartlepool and the Tees Valley.

President of the Tees Valley Law Society Jeremy Spooner has welcomed the move, saying the office would help solicitors to focus on the "particularly diverse challenges" facing the legal profession across the North-East.

Mr Spooner, of Spooner & Co, in Norton, Stockton, said: "There is quite a bit of disquiet about legal aid at the moment, and the lack of criminal lawyers in the region because they are being squeezed on fees.

"There are also other challenges facing solicitors, such as in home improvement packs and e-conveyancing, which this regional office will help to focus on.

"The office will also be a means of communicating and offer support, education and training."

Law Society president Kevin Martin, who officially opened the office last week, echoed Mr Spooner's comments by warning solicitors that they will need to be ready to face new challenges caused by a shake-up of legal services.

He said the Legal Services Bill would allow new forms of legal practice and external investors to be involved in law firms, with companies such as the AA and RAC moving into legal services.

"Just last week, the AA said they would like to offer legal services as soon as the market opens up. They may want to buy a law firm or set up an in-house legal team, but the legal landscape is changing and solicitors in the region need to be aware of this," said Mr Martin.

"In two or three years, these organisations could provide one-stop-shops, offering legal services, insurance and breakdown cover. The Law Society is in favour of this in the long-term, providing that proper regulations are put in place."

Another concern being addressed by the Law Society is that of legal aid.

It endorses many of the proposals for improving civil aid published in the Legal Services Commission consultation paper Making Legal Rights a Reality.

They include providing legal aid from GP surgeries and community centres and increasing the use of information technology and telephone advice. However, Mr Martin said that delivering such services depended on more resources being made available.

Spending on civil legal aid fell from £564m in 1999/2000 to £483m in 2002/2003.

Mr Martin said the legal aid system was under increasing strain because fewer lawyers were prepared to do the work on the terms offered by the Government.

He said: "The system is already in crisis. Solicitors and barristers are simply not being paid enough and so there are not enough companies willing to do the work.

"What we are seeing is the development of legal aid deserts, where people are having to travel hundreds of miles to find a lawyer able to represent them.

"The North-East has not escaped these problems - there is a serious shortage of criminal legal aid lawyers.

"The system is currently being run on the goodwill of solicitors and others due to inadequate funding."

The Law Society is also continuing its campaign for a careful introduction of Home Information Packs (HIP), which the Government recently announced would be introduced in June 2007.

The idea of the HIP is that the seller will produce a pack containing information about property for potential buyers before they make an offer.

Similar schemes are already operating in other countries, notably Denmark and Australia, and are working well.

The seller will pay for the cost of the HIP, unlike at present when the buyer has to pay for the collection of the relevant documents and surveys.

The Government estimates the pack will cost between £500 and £600 to put together, which is made up of £280 for home condition reports, £200 for local authority searches and £125 in legal fees.

Mr Martin said: "We are surprised that they are to be brought in before a proper dry run is conducted and evaluated.

"The Government has still to set up proper regulation for both the Home Condition Reports and the Home Inspectors who will deliver them.

"We hope that launching this in the month of June will not cause a negative impact on the housing market at its busiest time of year. It's disappointing the Government appears to have ignored those who want to be sure that Home Information Packs will deliver the benefits to the consumer that they claim."

For more information about the Law Society, visit www.lawsociety.org.uk