Select Committee on Constitutional Affairs Written Evidence


Supplementary evidence submitted by the Rt Hon Lord Falconer of Thoroton, Secretary of State, Department of Constitutional Affairs (LAR 174b)

  Thank you for your letter of 21 February, asking about the DCA's position with regard to best value competition for legal aid contracts. In particular, you asked for an undertaking that my Department would not interfere with the setting of legal aid rates by the market, and accept legal aid rates above the levels of the fixed fees to be introduced in the transitional period.

  By allowing the market to set the rates for legal aid work, through transparent competitive tendering processes, we will be sure that we arrive at the best prices for the services we purchase. As I acknowledged when I gave evidence last week, it is possible that prices could increase in some, limited, areas as a result of tendering. But where that were to be the case we would be forced to increase prices administratively (or lose services). In any event, I think it most unlikely that we will see a general price increase. We will be extremely vigilant to avoid the possibility of cartels forming and manipulating prices upwards.

  If best value tendering were nevertheless to lead to overall significant increases, we would have to pay these rates, That would inevitably give rise to offsetting cuts elsewhere. I should stress that this is a scenario that is extremely unlikely.

  I trust that this satisfactorily answers the Committee's question.

February 2007





 
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