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The "English experiment"
Reference to the abolition of scale fees as 'the English experiment' is misleading. Scale fees have been abolished not only in England, but also in New Zealand, Canada and most parts of Australia. That abolition is not 'an experiment' but is a recognition of the fact that scale fees are anti-competitive and irrational, and cannot guarantee the quality of conveyancing services. Moreover, I am not aware of any jurisdiction that has abolished scale fees and has subsequent re-introduced them.
The public interest
The Law Societies of Hong Kong and England are entitled to their views of what is in the public interest. However, consumer groups in England and Hong Kong, and a clear majority of those who responded to the Consultation Paper on Legal Services, support the abolition of scale fees.
Note - Resolution passed by the Council of the English Law Society on December 14, 1995 -
The Council resolves:
(a) As a matter of urgency to obtain the advice of leading Counsel on the constitutional competition and vires issues of the matters which are the subject of consultation under paragraph (b).
(b) To undertake consultation as soon as possible thereafter as to whether the Law Society should:
(i) Publish guideline fees for such conveyancing transactions as shall be defined by the Council after consultation.
(ii) Seek amendments to the Solicitors Indemnity Rules with the intent that SIF indemnity cover should not generally be available in cases where fees are charged at rates lower than provided by the guidelines, but that in such cases solicitors should be required to arrange their own insurance cover through an authorised insurer.
(iii) Introduce mandatory conveyancing quality standards in return for the establishment of a reasonable level of mandatory minimum fees.