Tribunal costs not set to reduce significantly

The new set-fees regime for legal teams will not be applied to tribunals nearing the end of their work, writes Carol Coulter , …

The new set-fees regime for legal teams will not be applied to tribunals nearing the end of their work, writes Carol Coulter, Legal Affairs Correspondent.

When the Minister for Finance, Mr McCreevy, announced last month he was introducing a new, much cheaper, set-fee method of paying lawyers working in tribunals there were few who objected. True, the Bar Council voiced its misgivings and its fear that suitably qualified people would not now want to work for such inquiries.

However, its colleagues in the Law Society expressed quiet satisfaction at the ending of what it perceived to be a public relations disaster for the entire legal profession.

At the time its director general, Mr Ken Murphy, pointed out that the Law Reform Commission on tribunals had criticised the retention of counsel, often for years on end, on the basis of the same daily fees as would apply to a court case of limited duration.

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"The commission noted that counsels' income depends upon an aggregate of 'sunny days' [when he is paid\] and 'rainy days' [when he is not\]," he said. "Against this background, tribunals of inquiry offer the climatologically impossible scenario of, often, three or four years of continuous sunny days."

The sunny days are set to continue, however, for some time yet for the counsel working for the various tribunals already in existence.

If the fees were reduced when work resumes next term, the likelihood is that some, if not most, counsel would leave and return to private practice. This could disrupt the work of the tribunals. However, some are due to end in the foreseeable future, and, in his discussions with the various chairmen, the Attorney General undoubtedly accepted the argument that it would be a false economy to disrupt them at this stage.

The Barr tribunal into the shooting dead of John Carthy in Abbeylara in 2000 could report next year. If it does, its legal team is likely to finish work on existing terms.

The Morris tribunal, concerning complaints about gardaí in Donegal, which started in July 2002, has made good progress and is likely to complete its work in the next two years. It has concluded an agreement with the Attorney General that the fees for its legal team will not change until September 2006.

The Moriarty tribunal, which is inquiring into what payments Mr Charles Haughey and Mr Michael Lowry received from businesses, and what, if any favours, they gave in return, has been going on for seven years. Its work has been challenged in court many times.

Mr Haughey's political career is now well over, and he suffers from poor health. Few people seem to care about Mr Lowry, who is unlikely again to achieve ministerial status. There are signs that this tribunal is seeking ways to finalise its work. It has been assured there will be no immediate change in its team's fees. It is likely to conclude an agreement that will allow it to work for at least another year on current fees, while trying in that time to wind up.

However, the Mahon (formerly Flood) tribunal into planning shows no sign of being close to an end. By its own estimate it could go on for another 11 years. There is no doubt its legal team's fees will be reduced as one module is completed and another entered into.

The Ryan (formerly Laffoy) commission into the abuse of children in institutions is also set to continue for a few more years, although its new chairman, Mr Justice Ryan, has proposed a new way of working to reduce hostile cross-examinations and resulting court challenges from religious orders. It will also be subject to the new rates.

The Dunne inquiry into organ-retention is arguably the most controversial, as it has so far cost €15 million and produced little to show for the expenditure. Major revelations concerning the sale of pituitary glands to pharmaceutical companies did not emerge from the inquiry, but did so independently. The inquiry is now expected to report later this year. It is also unusual in that it is run by a senior counsel rather than a judge, who is paid senior counsel rates rather than a judge's salary, which is considerably less.

Two years ago, before the Morris tribunal was even properly off the ground and the Dunne inquiry had barely started, the cost of tribunals was estimated to be running at €60 million, and this before third parties had been awarded any of their costs.

Since then the Mahon-Flood, Barr, Ryan and Moriarty inquiries have continued to clock up the euro. The cost is likely to run to well over €100 million before the new set-fees regime kicks in.