Law Institute of Victoria

President’s Leadership Lunch

RACV City Club, Level 17
501 Bourke St, Melbourne

Friday 3 October 2008, 1.10pm

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Acknowledgements

Other Acknowledgements

Introduction

  1. It’s a pleasure to join you today.
  2. Since becoming Attorney‑General last November, I have been consistently impressed by the contribution of the Victorian legal profession to the national legal debate.
  3. We all are privileged to work in the law, whether in government or the private sector.
    The Victorian profession works hard to provide input into national legal policy, and the Victorian Law Institute plays an integral role in this.
  4. I note in particular you have highlighted access to justice and legal aid issues this year. I commend you on your work to draw attention to this important area.
  5. Today, I have been invited here to speak about ‘A legal framework for a modern competitive economy’.
  6. The events we are currently facing in the global financial markets are evidence of the challenging times we face.
  7. And it is critical that we advance and promote a modern legal framework to meet these challenges.

Reform Agenda

  1. We came to Government with a broad and far reaching reform agenda, which we are now implementing.
  2. The Council of Australian Governments met yesterday in Perth – their third meeting this year.
  3. And at the first COAG meeting after last November’s election, a new model for cooperation between the States and Territories was agreed.
  4. COAG established seven working groups, each with considerable authority to get on with its part of the national reform agenda.
  5. My ministerial colleagues Lindsay Tanner and Craig Emerson are co-chairs of the COAG Business Regulation and Competition Working Group.
  6. They are helping drive an ambitious reform agenda to reduce the costs of regulation and enhance productivity and workforce mobility in areas of shared Commonwealth and State responsibility.
  7. Their participation is also providing impetus to projects within my portfolio that have too often suffered from a lack of political will.
  8. And this is a reflection of our commitment to improve the productivity and competitiveness of our economy.
  9. For my part, I am working to ensure Australia is positioned to be the commercial legal services hub of our region.
  10. At the same time, I am working to reform our laws with a focus on encouraging and promoting economic growth.
  11. This means reforming our laws in a way that remove hindrances to business.
    At a base level, this means abolishing unnecessary red tape and reducing costs.
    And it also means facing the challenge of our unique system of federation head on. It’s potentially a good system to promote innovation at a state level and to develop and implement all ideas emanating from all levels of Government to get national solutions for national challenges.

Harmonisation Conference

  1. Any attempt to modernise laws requires successful public and private partnerships.
  2. A key focus of my agenda to modernise law is to facilitate and promote legal harmonisation.
    Consistency is essential for Australia to remain internationally competitive in the 21st century.
  3. And this was the very issue addressed just a couple of weeks ago at the inaugural ‘Harmonisation Conference’, an initiative of the Standing Committee of Attorneys-General.
  4. For the first time in Australia, the legal profession, law reform commissions, business, industry and academics were brought together to consider current and future areas of legal harmonisation.
    I know that John Corcoran attended on behalf of the Institute.
  5. Law-making cannot happen behind closed doors and policy wisdom does not only reside in our own departments.
  6. This conference represented a significant and positive change in the way that SCAG interacts with the legal community.
  7. And early feedback is that the conference did provide a welcome boost of fresh ideas and views to SCAG’s work.
    I think this is a clear reflection of the importance stakeholders place on harmonising the legal regimes under which they operate.

National Model Bill

  1. One strong message from the Harmonisation Conference was the need for better regulation for the legal profession.
  2. Victoria, New South Wales, Queensland, the ACT and the Northern Territory have all now implemented the SCAG National Legal Profession Model Bill.
    And as you will know, are benefiting from greater efficiencies.
  3. In the near future, Western Australia and Tasmania will also be implementing the Model Bill.
    This means that it will be easier for legal practitioners to practise across these jurisdictions.
  4. Unfortunately, South Australia is yet to implement this project, despite their continued commitment to it. I hope the deadlock can be broken to enable South Australia to join the fold.
  5. But for reforms such as this to work properly, harmonisation must mean harmonisation. With the Model Bill, we have already seen considerable fracturing in the way it’s been implemented.
  6. And the message from the Harmonisation Conference was clear - the achievements of the Model Bill project are still not fully sufficient for really efficient regulation.
  7. We need to look at new ways of streamlining our regulation to be nationally and internationally competitive. Clearly, important decisions such as these require careful ongoing assessment and consideration.
  8. One option raised with me more than once is whether we need a single piece of regulation for the profession. And if so, how should it be achieved.
  9. I have not formed a view on this yet. However, it’s a worthwhile question to canvass and I would greatly appreciate your input in this area.

PPS Reform

  1. Whatever approach we ultimately take, we must recognise that to remain internationally competitive we need to develop new strategies, master new technologies and find innovative and practical ways of tackling old problems.
  2. A key example of a reform which encompasses all of this is personal property securities, or PPS.
  3. And I am happy to report that, with the fresh impetus at COAG, we are closer than ever to getting over the finishing line.
  4. Only yesterday the Prime Minister and his State and Territory counterparts signed an inter‑governmental agreement on PPS reform.
  5. This is a very important milestone. The agreement represents a commitment by all jurisdictions to establish the national PPS system. And it sets out the parameters for the scope and the ongoing management of the national system.
  6. Importantly, the agreement also underpins a referral of constitutional power from the States. This will enable us to replace more than 70 different Commonwealth, state and territory acts that regulate PPS– with one Commonwealth act.
  7. And to underpin this, we are replacing more than 40 PPS registers, many paper based– with one national online PPS register.
  8. It makes sense to adopt a universal approach to PPS transactions – especially given the high mobility of personal property and the open nature of our economy.
  9. Earlier this year I released an exposure draft PPS Bill for public comment.
    And I’ve also recently released a document outlining our approach to the accompanying PPS regulations.
  10. My Department has consulted extensively on the PPS Bill.
    And we’ve received many submissions, including from the legal profession, small business, industry, financiers and consumer groups.
  11. I am very grateful for your contributions to this process.
  12. We are now working to reflect this feedback in a revised PPS Bill. And I look forward to your continued engagement in this important national reform.

Reforms to the Federal Court System

  1. But our reform agenda does not end with harmonisation.
  2. With the increasing complexity of modern business and current trends in the global economy, we have seen an increase in the frequency and scale of commercial disputes. The unfortunate reality is that this is only going to continue into the future.
  3. I want to make sure that our federal courts are equipped to handle these matters expeditiously and efficiently. The Federal Courts have been driving much of this reform. Efficiency has its own rewards. But it also enhances our ability to make Australia the commercial dispute resolution centre of our region.
  4. So, in consultation with the courts, I’m developing a range of measures to give judges more active case management powers.
    These are aimed at promoting flexibility and reducing delays to importantly minimise the cost of litigation.
    They’re also intended to keep costs proportionate to the amount in dispute.
  5. For example, at its most basic level, I’m considering including in legislation a specific requirement for disputes to be resolved justly and cheaply.
    And as efficiently as possible.
  6. I’m also considering providing the Federal Court with broad powers to make directions that may, in appropriate situations, limit:
    • the time for examining witnesses
    • the number of witnesses
    • the number of documents tendered in evidence, and
    • the time for submissions.
  7. Some of these measures have already been used successfully.
    For example, in the James Hardie litigation, NSW Supreme Court Judge Ian Gzell recently imposed time limits and limits on cross-examination.
  8. The courts have also suggested innovative solutions to address the modern challenges of mega-litigation.
    And we’re working on this in partnership with them.
  9. You may have heard me speak about one particular innovation in this context – the Fast Track List or Rocket Docket.
    It was recently introduced in the Victorian District Registry of the Federal Court.
    And its aim is to streamline civil court procedures, making case management more efficient and cost effective.
  10. So far the Rocket Docket has achieved impressive results.
    And the Federal Court is considering extending it to other registries.
  11. It’s action like this that can help our courts become a centre of excellence for commercial litigation.
    And from that, help our economy be productive and competitive.

Legal Services Procurement

  1. As mentioned, reform of legal services delivery is essential in ensuring Australia is positioned to be the commercial legal services hub of our region.
  2. I’d also like to note that the same principles of efficiency and effectiveness apply to Government. We cannot preach these methods without practicising them ourselves.
    This is why I’m reforming the way the Commonwealth purchases legal services.
  3. Last month I announced the release of a common tender package for mandatory use by all Commonwealth agencies.
    This new package will streamline the process for purchasing legal services.
    It should reduce costs for both the private legal sector and the taxpayer.
  4. Significant elements of the package include:
    • allowing smaller agencies to ‘piggy-back’ on tender panels established by larger agencies in the same portfolio, and
    • removing ‘mini tenders’ for legal work valued at less than $80,000.
  5. The reforms also require agencies to assess a firm’s pro bono commitment when evaluating legal services tenders.
    This new requirement complements the Government’s commitment to legal assistance programs, which exceeds $270 million a year.
  6. The package builds on the reforms I introduced earlier this year that provided for greater transparency in Commonwealth legal expenditure, delivering taxpayers value for money.
  7. I, with the assistance of my Department, will be monitoring the effectiveness of the reforms.
  8. And I intend to continue working to further improve the efficiency of Commonwealth legal services.
  9. I welcome and encourage the legal profession to provide us with feedback on these developments.

Conclusion

  1. I think that what Australia has to offer is compelling – a stable political system, a competitive economy, and a legal culture that is one of the best in the world.
  2. And as international trading ties broaden and deepen, we must ensure we can take all the necessary steps to be truly competitive on the international stage.
  3. It is the responsibility of the Federal Government to position Australia as an international leader to ensure we can gain a competitive commercial edge.
  4. We need to approach national issues with modern, consistent, national solutions.
  5. And let me assure you - the Rudd Government is committed to building a more competitive Australia.
  6. And I am committed to doing my bit to advance a legal framework to support it.
  7. Thank you for your contributions.

I welcome any questions or comments you may have.

ENDS