Transformation of the private security industry is hailed in the SIA’s annual report, featured in our September issue.
There is a lot of ‘tough stuff ’ to do, says Security Industry Authority chief executive John Saunders in the SIA’s annual report. In a section titled ‘strategic direction’ the report says: “To simply introduce regulation in the form of licensing and an approved contractor scheme without seeking to address the weakness and opportunities evident would not achieve the aims of the PSI [Private Security Industry] Act and is not what the majority in the industry wish to see. Consequently it is extremely important that the introduction of regulation be designed as a catalyst to assist the industry in correcting the deficiencies and weaknesses and position for a new future.”
The document is something of a shop window for the authority. For example, the report speaks of ‘SIA values’, and that it does work by being smart, collaborative, independent, brave, innovative and energised. The authority’s outline timetable however reveals that licences will not be extended to Scotland until 2006-7, after all the sectors have been licenced in England and Wales – door staff and vehicle immobilisers in 2004-5, security officers and key-holders in 2005, and consultants and private investigators in 2006. Licences will be extended to court officers and bailiffs in 2008-9. On Scotland, the report quotes Jim Wallace, as Justice Minister responsible for private security, speaking of a “clear need for regulation”. While the Scottish Executive in March 2003 asked the SIA to extend its remit to cover Scotland, the report adds: “An amendment to the Private Security Industry Act 2001 will be required and consequential amendments to reflect the Scottish legal system before the SIA can implement licensing in Scotland.”
As for the current exemption of in-house security officers from licences, the document admits there is possible public confusion, and a possibility that some security buyers might choose to go in-house. The report adds: “As part of its strategic development programme, the SIA has commissioned work aimed at reviewing whether the licensing of security guards should be extended to include ‘in-house’ guards at some time in the future, and if so, how that should be managed. A consultation programme is under way to inform the way forward.” The SIA is also looking at who, if anyone, should be exempt from licensing. The 2001 Act speaks of exemptions “for whom suitable alternative arrangements apply”.
The statement of accounts details spending of £5,975,817 on ‘developing the software system to enable the licensing of the private security industry’. The Authority received £13,250,000 in Grant in Aid in the year ending March 2004: £7,113,279 ‘for the operation activities of employment and running costs’ and £6,136,721 ‘for capital expenditure’. As for staff salaries, John Saunders and Andy Drane, deputy chief executive, did not disclose their pay and pensions. Molly Meacher, who resigned as chairman in December 2003, was paid £57,050 in fees for the year 2003-4, which included a pay-off of £13,650 in lieu of notice. Non-executive fees totalled £103,415, while staff salaries totalled £1,180,483. The SIA spent more on consultants – £1,257,259. Total employment costs were £3,714,478. At March 31, the SIA employed 70 staff including four board members. Richard Childs represented ACPO on the SIA board until August 2003 when he retired as Chief Constable of Lincolnshire Police. From then until March 31, the SIA has paid Richard Childs’ company Community Safety Consultancy £25,754 for consultancy work.
The document reviews the SIA’s three-year history, including the launch in April 2003, with comments by BSIA chief executive David Dickinson; Christopher Beese MBE of Armor Group; and Chris Smith of HSBC plc.
In 2003 the SIA entered into dialogue with insurance underwriters via the Association of British Insurers (ABI) and Lloyds of London. The ABI represents 80 per cent of the insurance underwriting the security industry, Lloyds the
remainder. The SIA’s aim is to persuade underwriters of
the risk reduction (and resulting claims reduction) brought about by SIA licensing of the security industry and as a result the
benefit to underwriters of making SIA licensing a condition of issuing an insurance policy to a security company. In addition the Approved Contractors Scheme will be seeking to provide an
insurance incentive for companies successful in joining the scheme.
Throughout, the report makes a business case for what the SIA is doing. “For businesses operating in most sectors of the private security industry it is imperative that performance and competitiveness is improved.” The approved contractor scheme is described as “a framework for developing, promoting, spreading and enforcing high standards and best practice.
Accreditation will be based on a composite approach – focussing on a combination of internal management processes and external
quality delivery.”
As for enforcing the rules, the report says that whistle-blowing will be ‘strongly encouraged’. The report speaks of overlaps with other enforcement agencies such as the police and customs. As for the SIA’s own investigators, the report says: “An SIA intelligence cell will facilitate strategic and tactical assessments, which will inform targeted enforcement activity
and identification of potential criminality.”
