Licensing has to be a good thing, says Jonathan Levine, Managing Director – First Security (Guards) – it will almost certainly drive the cowboys out, but the cost will also put many legitimate businesses under pressure, he warns.
Exact figures have not been confirmed , but a figure of between £150 and £200 per individual is being discussed for a three-year license. Taking the higher figure, and multiplying it by the number of security officers at First Security, for example, gives us a total of nearly £400,000 extra we will have to find when the programme comes into force next year. And the costs don’t stop there. Almost certainly, extra training will be required, which again – whilst a good thing – means additional cost. Who is going to pay’ Add to this mix the further complication of the 48-hour week (as part of the Working Time Directive) coming into effect (apparently) in November 2003, and the difficulties become more obvious still.
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Liability insurance
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An issue that will not go away is public liability insurance (PLI). Since September 11th, insurances generally have increased and premiums have risen, some by more than 100pc. Clearly this can only have a negative impact on profitability, may well impact on investment and even affect service in the longer term. The difficulty is that there are no doubt some customers who cannot see the advantages of PLI, and for those that do, they may not be willing to see such insurance reflected in increased fees. They will expect the manned-guarding companies to absorb the cost themselves. The knock-on effect is that some guarding companies may look to cut corners on insurance, which will only store up problems for the future for customer and supplier alike in the event of a claim. The manned guarding industry, like many industries within the service sector, is constantly under pressure to reduce costs whilst improving delivery. The better companies have budget for these increased costs wherever possible, and succeeded in finding efficiencies where efficiencies can be made, but there is only so far one can realistically go. By ‘selling ourselves cheap’, there is the danger that we do everyone – including our stakeholders, our clients and our industry – a massive disservice. But how do we remain competitive in the face of such mounting costs’ The truth of the matter is that the customer is going to have to take his share of the responsibility. The industry cannot keep absorbing costs; some of these costs will eventually have to be passed on. We need to collectively agree a sensible way forward, through regular forums and discussions. Because if we don’t, the consequences don’t bear thinking about.
