Bitterness between the Tasmanian Government and Apple Isle lawyers continues to escalate, with Attorney-General Judy Jackson attacking Law Society claims that investors burnt from failed Solicitors’ Mortgage Funds would soon be compensated.

“The Law Society ... has indicated to hundreds of investors that relief is ‘in sight’,” Jackson said. “But my best advice is that we are potentially years away from investors receiving 100 cents in the dollar.

“This could be seen as a cruel and cynical exercise that gives false hopes to investors while the Law Society tries to wash its hands of the fiasco.”

Jackson’s stinging remarks will no doubt inflame tensions between the profession and her department, ignited last month when she stripped the law society of all its regulatory functions, including licensing. The guild reacted angrily to the proposal, which leaves it unable to issue practising certificates, and has received support from the Law Council of Australia to reverse the changes.