The Attorney General Robert McClelland is about to deliver a report to Cabinet on the procurement of federal government legal services. It's expected to recommend the adoption of a government-wide approach to procurement, with the aim of slicing millions off the government's annual legal bill, leaving the private sector running scared.

The Federal Government spent $555 million on legal services last year. Podium places went to the ATO (75.5 million), ASIC (70.8 million) and the Department of Defence (61.2 million). The figures (reported in the Australian) also show that $247 million was spent inhouse, $190 million with private firms and $118 million with the AGS.

To date individual departments have been largely free to line the pockets of their lawyers decide how to best satisfy their legal requirements, although the government has been trying to improve the process over the last couple of years by introducing common tender arrangements.

The AG's report which was co-prepared by a former Clutz partner includes a number of recommendations including a co-ordinated procurement process for legal services across all federal agencies and the professionalising of in-house legal practices. It also includes a recommendation that the AGS be automatically included on all government panels. Fearing that this will give the AGS a significant cost advantage over private firms - as well as limiting the amount of work going to the private sector - firms with established government practices are looking worried.

    A panel lawyer yesterday 

Lawyers and their bills. It seems to be a recurring theme for the AG. Earlier this year the National Legal Profession Reform Bill was tabled, and the review coincides with public comments by the Western Australian Chief Justice on the pitfalls of time charging.
 
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