ÐÇ¿Õ´«Ã½

OCS SECURITY SERVICES APPLAUDS THE launch of the Security Industry Authority (SIA). That said, this industry needs a fair opportunity – and a decent lead time – to adapt to its new environment, starting from the moment when all aspects of the licensing and regulation process have been finalised rather than the enforcement beginning to tick when the SIA offers outline descriptions of its plans.

We strongly believe that a minimum of 12 months' preparation is needed to allow contractors time to properly prepare the ground for clients, who in turn will need a reasonable 'window' within which they can increase their security budgets.

That year is also going to be needed if the industry is to implement the SIA's new training requirements in the correct fashion.

The effects on labour costs
The upcoming changes will mean increased labour costs and have implications for contract values. Labour costs in the manned security sector typically account for 80% or more of the total contract value. As a result, the many legislative changes – both recent and imminent – are having significant financial impacts on service providers and their customer base.

Increased labour costs could also trigger a short-term shrinkage in the manned security market, thereby forcing contractors and clients to look once again at the security options open to them via the use of systems and IT.

Spending on security should be seen by any end user as a strategic investment, rather than a grudge purchase. With this in mind, the private sector service providers would welcome the SIA marketing this 'philosophy' to clients as well as it has already sold the changes to contractors. These changes give the industry the opportunity to encourage clients to opt for quality as opposed to cost-based contracts. To this end, OCS Security Services is also calling on the SIA to actively lobby the insurance industry and help secure lower premiums for those companies appointing Approved Contractors.

Indeed, the SIA could go further in swinging major support for the new legislation and approach to security provision by lobbying Government departments to take a demonstrable lead by making quality-based security contract awards.

In anticipation of increased budgets, the benefits of contract improvements need to be sold clearly to clients by security providers and the SIA, with each emphasising the financial benefits as well as the qualitative. Higher charges will support higher

CRB delays are unacceptable
The SIA also needs to review the process for individual licensing. The current delay of four or more weeks as the Criminal Records Bureau processes new and potential members of staff for security companies isn't practical for the contractor or the would-be employer.

With high levels of rolling recruitment throughout the industry, there are simply not enough suitable, non-client facing positions to offer 'probationary' staff while their applications are processed.

In addition, the SIA's plans to pitch the licence fee at somewhere between £150 and £190 – an amount that's payable upon application, and is non-redeemable whether or not a licence is eventually issued – places yet another financial burden on both contractors and potential employers.

The current proposals would deter private sector employers from giving potential members of staff loans to cover the licence costs because they wouldn't be recoverable in the case of a rejection.

We'd very much like to see the SIA investigate alternative options, including the fee being payable once a licence is granted.

Another highly important issue that the SIA must face up to is the 'loophole' in the Private Security Industry Act 2001 that fails to cover in-house security operations. This creates an uneven playing field for in-house and third party security providers. We'd like to see this issue addressed immediately by the SIA, otherwise we could well see the market imploding as clients poach contractors' staff and bring their total security operations in-house – where operatives will not be bound, as things stand, by the same high standards on training and licensing to which all responsible private sector contractors aspire.