Further to the answers to questions Nos 1620 to 1635 and 1637 (Hansard, 12 August 2003, page 18168) what are the Chief Executive Officers of the Minister's departments and agencies doing to ensure that they do not retain the services of any barrister or solicitor who has previously been made bankrupt.

The Commonwealth policy regarding the retention of the services of a solicitor or barrister who has been made previously bankrupt is intended to ensure that Commonwealth Departments and agencies do not engage counsel who use insolvency as a means of avoiding tax. The policy is not directed at preventing the briefing of all counsel who are, or have been, insolvent.

There is no formal Defence policy regarding the retention of the services of a solicitor or barrister on this issue and Defence does not make its own inquiries regarding the financial status of barristers and solicitors engaged on behalf of the Department. As a matter of practice the Department relies upon a panel of top tier law firms who, among other things, engage Counsel and provide other external legal services. Such firms are expected to have regard to Commonwealth policy. In addition, the provision of such services is regulated by contracts that include a standard term that the Commonwealth may terminate the contract in the event of insolvency or bankruptcy of the firm.