Corporate counsel hit out at the costs of practising certificate as resentment over Law Society's record of representing in-house simmers. Michelle Madsen reports on the results of the latest The Verdict survey

Resentment among corporate counsel over the practising certificate (PC) fee remains as high as ever, according to new research, with 81% of in-house lawyers unhappy to bear the full cost of the levy.

This month's Legal Week The Verdict survey, conducted in association with Davies Arnold Cooper, shows that a majority of corporate counsel feel there should be a sharp discount for in-house lawyers.

The survey found that only 19% of respondents believe corporate counsel should bear the full cost of the PC, which currently stands at £950 a year.

Dawood Pervez, general counsel at wholesaler Bestway and Commerce & Industry (C&I) Group representative to the Law Society, told Legal Week: "The practising certificate does give a certain cohesion and works as a badge for the profession. However, its role as a tool to maintain standards becomes scarcely relevant in the context of in-house lawyers, who are subject to the disciplinary rules of their company."

However, the majority of respondents (67%) felt that if in-house lawyers are to work on reserved areas of legal activity such as conveyancing, litigation or probate, it is important for them to hold a PC. A further 19% agreed that it was a necessary tool and only 14% said they felt it was 'unimportant'.

Andrew Barling, corporate counsel at tech company Arm, said: "It is a bit like a poll tax – you are forced to continue paying for the right to call yourself a solicitor when you have already spent many years and a lot of money qualifying for the right to do that.

"The Law Society also seems to think it only needs to service the needs of high street solicitors and ignore colleagues in industry. In effect, you – or your employer – are forced to pay for representation you do not want and do not, in practice, get."

General counsel of logistics company Kewill Systems Richard Allen agreed, saying: "The PC should be held by all practising solicitors, including those who are in-house, but asking them to pay the full fee is utterly unreasonable. I get virtually no benefit from the Law Society and do not see why I or my employer should have to pay for the transgressions of small private practice practitioners."

In-house counsel largely agree that they do not get a fair benefit from paying the PC, with only 26% saying they felt in-house lawyers should pay 100% of the full fee if they are involved in reserved practices. The majority of respondents (56%) felt that less than 60% should be paid and 15% felt that they should pay only up to 20% of the full fee.

Helen Mahy, general counsel at National Grid and chair of FTSE 100 representative body the GC100, said the issue was a concern to members.

She commented: "In-house lawyers should pay a discounted rate, but they have to pay something. If the profession is to be regulated, there will be a cost."

The question as to whether in-house lawyers should foot such a large chunk of the bill for the cost of regulating the rest of the profession remains contentious, with just a third (33%) of respondents agreeing that the fee that they pay should contribute towards the complaints and regulation mechanism. The same number felt that all lawyers should have a part of their PC fee put towards law reform work.

Despite the obvious dissatisfaction felt by the in-house community towards the benefits they reap from the PC, the Law Society in recent years has continued to press in-house lawyers to pay the levy.

At the end of March the society launched a campaign to amend the Solicitors Act to end the current exemption on Government lawyers paying the full fee. The proposed reform, which has been rejected by the Government, would have added an estimated £1.2m to Chancery Lane's revenues.

Office of Fair Trading general counsel Brian McHenry argued that the exemption was justified.

He said: "The Government is rightly resisting a change in the law. This would be an additional burden on the taxpayer as all Government solicitors have these fees paid for by their office."

Whether the Law Society succeeds in its effort or not, in-house lawyers do not want to pay the full price for a PC, which the vast majority believe is not being tailored to their needs.