Michael McDowell (Dublin South East, Progressive Democrats)

This Bill marks an important milestone in the development and regulation of the private security industry in this State. The industry encompasses a broad range of security activities and services, including door supervisors — colloquially known as "bouncers" — private investigators, security guards and consultants, as well as suppliers and installers of security equipment. When enacted, it will be the first legislation in our jurisdiction to deal comprehensively with this industry.

The Bill is proof of the Government's commitment to support the industry and its determination to promote high standards and to encourage best practice. The Bill represents a balanced and progressive response to the needs of the private security industry and the concerns of the public who increasingly come into contact with it on a daily basis.

Our society has become more security conscious in recent years for good reason. As part of this process, the work undertaken by the private security industry has broadened into new areas and occupational activities. As a consequence, the industry has much greater direct contact with the public than in the past. Nowadays, we routinely encounter security equipment and security personnel in shops, shopping centres, entertainment venues and leisure facilities and we take it for granted. Moreover, many of the security-related duties that were previously undertaken by "in-house" staff are contracted out to specialised security service providers.

It is in the public interest that everyone involved in the private security industry operates to the highest standards. Unfortunately, this is not always the case and most of us have encountered, experienced or received reports of instances of low standards and unacceptable behaviour. The private security services industry has grown rapidly in recent years and it encompasses an extensive range of occupations and activities. It represents an important area of economic activity and it is an important source of employment, both full-time and part-time.

Major changes in the sector have resulted from the development of sophisticated security-related technologies in recent years. Modern surveillance systems and monitoring equipment have opened up new and improved possibilities for guarding property and protecting people. This is generally to be welcomed and supported. In the wrong hands, however, the manner of installation, maintenance and operation of such equipment could lead to abuses.

These changes point to the need for standards in which we can all have confidence and trust. The aims of the Bill, therefore, are promotion of consumer confidence and enhancement of the quality of service provided. The Bill will help achieve these aims, put the industry on a sound footing for the future and help to root out those who bring the sector into disrepute. The private security industry appreciates and supports our efforts in this regard.

The suggested framework for a statutory regulatory system, which is at the heart of the proposals in the Bill, was set out in the 1997 report of the consultative group on the private security industry. This was a high level group which brought together representatives of employers and employees in the private security industry, key Departments, the Garda and other relevant bodies. The consultative group's report acknowledges the problem of low standards, which is often related to a lack of training, poor working conditions and a high level of staff turnover. Furthermore, low pay in parts of the industry leads to abuses of the social welfare system and non-compliance with the tax code. The minimum wage did not apply when the consultative group reported.

The activities of companies of dubious origins, with links perhaps to criminal or paramilitary groups, have also given rise to concerns. I do not suggest these are widespread problems but they exist and it is regrettable that the high standards of reputable companies in the private security services industry can be undermined by less scrupulous operators and criminal elements. The industry must, because of the nature of its work, adhere uniformly to high standards of service, responsibility and accountability. There cannot be competition between the good and the bad where the bad undercuts the good at the expense of public confidence in private security.

This is the background against which the group concluded that the scope for voluntary self-regulation had been exhausted. The group recommended the establishment of a statutory body in its place to introduce, control and manage a comprehensive licensing system for the industry and to set and maintain appropriate standards. The group considered that this body could be established on a self-funding basis. The group's report and recommendations recognised a need for consistently high standards within the industry, adequate selection and training of staff and overall compliance with legislation in areas such as taxation, social security, company law, and health and safety standards in the workplace.

The Bill seeks to give effect to the principal recommendations of the consultative group. Essentially, it provides for the setting up of a statutory body to be called the Private Security Authority to control and supervise individuals and firms which provide security services and to maintain and improve standards in the provision of those services. One of the authority's immediate priorities will be to introduce and operate a licensing system and maintain an up-to-date and easily accessible register of all licensees. In the longer term, the aim will be to improve industry standards and delivery of the services concerned.

I will focus on the Bill's main provisions to give Senators an appreciation of its scope and an understanding of how the proposed system of regulation will work in practice. Under the commencement provisions in section 1, it will be possible to apply the Bill's provisions to sectors of the industry on a phased basis. I envisage that the licensing requirement will apply initially to door supervisors and security guards and be rolled out subsequently to other sectors. That will help to ensure a balanced work programme for the authority. I am sure it will have its own views on this, of which I will take due account when drawing up the relevant commencement orders.

Section 2 is important because it contains the definitions which determine the scope of the Bill. I draw Members' attention specifically to the definition of "security service" which is defined as a service provided by a private security employer or any of the persons set out in the list which follows in the course of an employment or as an independent contractor. This means that both private security companies and the individual staff members who provide security services must be licensed. It is not good enough that only the employer is licensed, the employees must be licensed also.

Section 2 also contains definitions of several categories of persons providing security services. These include "door supervisor", "installer of security equipment", "private security employer", "security guard" and "security service". The definition of "person" in this context includes natural persons, partnerships and companies.

A number of exemptions to the licensing requirement are set out in section 3. These include members of the Garda Síochána, the Defence Forces, authorised officers under the Air Navigation and Transport Acts or staff of a Department or State agency while undertaking official duties. Apprentices employed by a person providing a security service are also excluded. Additional exemptions may be made by means of regulations under subsection (2).

The establishment of the Private Security Authority which will be independent in the exercise of its functions is at the heart of the Bill. This is provided for in section 6. Provision is made in Schedule 1 for the establishment, if necessary, of advisory committees and the appointment of whatever consultants or advisers the authority considers necessary. The Schedule also provides for accountability of the chief executive to the Committee of Public Accounts and other Oireachtas Committees.

Provisions on the membership of the authority are set out in section 7. Members will be drawn from a broad range of relevant interests but it will not be possible to accommodate all such interests on a ten member authority. The advisory committee structure that I mentioned will, however, provide a vehicle for accommodating interests that cannot be accommodated on the authority.

The principal functions of the authority are set out in section 8. In general, it will control and supervise persons providing security services with a view to maintaining and improving standards in the provision of those services. It will grant and renew licences to persons within the industry and, where appropriate, suspend or revoke licences. It may also specify standards to be observed in the provision of security services by licensees and qualifications or training requirements for the grant of licences. Standards and qualification requirements will be implemented by means of regulations made by the authority with the consent of the Minister under section 51.

Sections 9 to 12 deal with the staffing of the authority and production of strategic plans. The authority must put in place and administer a system of investigation and adjudication of complaints against licensees. The carrying out of such investigations will be an important task of the new authority.

Section 13 empowers the authority to investigate any security services being provided by any person. It may request information relevant to an investigation from any person and also request a person to appear before it with a view to furthering the investigation. If these requirements are not complied with, the authority may apply to the District Court for an order requiring compliance. The court may treat a failure to comply with such an order without reasonable excuse as a contempt of the court.

Under section 14, the authority may appoint members of its staff to be inspectors subject to terms and conditions determined by it. Each inspector shall, on appointment, be given a warrant which he or she shall produce when requested. Inspectors will require certain powers of entry and inspection for the purpose of obtaining information on any matter under investigation by the authority. Section 15 makes provision for this. Refusal to comply with any requirement of an inspector will be an offence.

It will be important that the Minister and the Houses of the Oireachtas be kept informed about the authority's activities. For this reason, section 16 requires the authority to report to the Minister each year before 30 September and the Minister to lay copies of the report before each House of the Oireachtas.

In the interests of transparency, and to avoid possible conflicts of interests, section 17 makes provision for a declaration of interests by the chief executive, members of the authority or advisory committees and staff, including consultants and advisers. Section 18 prohibits the chief executive, members of the authority, members of staff of the authority and others from disclosing information obtained in the course of their duties. A person who discloses such information will be guilty of an offence.

Details of the licensing system and how it will work are set out in Part 3 of the Bill. As mentioned, the licensing requirement will apply to private security employers and all persons providing the security services referred to in section 2. For the purposes of the Bill, a private security employer is defined as a person who employs staff whose principal function is to provide security services for persons other than the employer, for example, a company specialising in the provision of security guards or door supervisors must have a licence since the company's business is to provide a security service for persons other than that employer. On the other hand, a retail outlet or licensed premises which employs its own security staff is not a private security employer for the purposes of the Bill and does not, therefore, require a company licence. A licence must be held by all individuals providing a security service as defined in section 2. All security guards and door supervisors must individually hold a licence, irrespective of whether he or she is employed by a private security employer, by a person who is not a private security employer or is self-employed. This means that "in-house", contracted and self-employed security staff are covered. I believe this approach is necessary to ensure high standards apply to all security guards and door supervisors.

Section 21 sets out the conditions for obtaining a licence to provide security services. Application forms must be accompanied by references as to the applicant's character and competence, as well as the prescribed fee. The authority may require an applicant to furnish such additional information as it may consider necessary, including certification by a senior member of the Garda Síochána, and may require verification of any information by affidavit. Investigations or examinations may also be undertaken regarding an applicant's character, financial position and competence.

In the case of companies and partnerships, the information required will relate to directors and partners respectively, as well as any manager, secretary or other officer of the entity concerned. An individual who occupies any of these positions and is also directly involved in providing a private security service will require an individual licence.

Section 22 provides that the authority may grant or refuse to grant a licence. It shall refuse to issue a licence where the applicant is not a "fit and proper person" to provide a security service or does not comply with requirements under the legislation. In the case of companies and partnerships, the conditions I have outlined apply to directors and partners, respectively, as well as to any manager, secretary or other similar officer of the entity concerned. This section also provides that a licence does not confer any right of property and that it may not, inter alia, be transferred or mortgaged.

Section 23 provides for the renewal of licences. Section 24 contains tax clearance provisions while section 25 specifies documents to accompany certain applications. An application by or on behalf of a company must be accompanied by a certificate of incorporation under the Companies Acts and dated not earlier than four weeks before the date of application. Where business is carried on under a business name, an application must be accompanied by a certificate of registration under the Registration of Business Names Act 1963.

Section 27 provides that the authority may, in certain circumstances, refuse to renew a licence; suspend a licence for a specified period; or revoke a licence. Such action would arise where false or misleading information had been supplied; where the licensee was no longer a fit and proper person to provide a security service; or where provisions under the legislation had been contravened. The procedures to be followed by the authority when it proposes to refuse to grant or renew a licence, suspend a licence for a specified period or revoke a licence are set out in section 27. A licensee might wish to apply for a variation in the kind of security service to which the licence relates. This scenario is provided for in section 28.

Among the important functions of the authority will be the issuing of identity cards to licence holders. Each licensee must have the identity card in his or her possession when providing the security service and, on request, produce it for inspection by a member of the Garda Síochána, a designated member of the staff of the authority or any person for whom the licensee is providing a security service. Detailed provisions on identity cards are set out in section 29.

Section 30 provides that certain categories of licensees to be determined by the authority must wear an identity badge containing the licensee's licence number when providing a security service. The aim of the provision is to facilitate identification of the individuals concerned where the need arises, for example, in the making or investigation of a complaint. Sections 31 and 32 deal with duplicate licences and identity cards and the surrender of licences and cards, respectively.

To provide ready access to the list of licensees, section 33 requires the authority to establish and maintain a register to be known as the private security register. The register will be kept at the offices of the authority and a copy will be supplied to every Garda station. This will enable users or intending users of private security services to confirm that a provider is registered to provide the service concerned. The register will be updated and published each year.

In the context of vetting licence applicants or licensees, section 34 provides that the authority may request the Commissioner of the Garda Síochána to provide any information required for the due performance of its functions. The section also provides that the Commissioner shall comply with any such request.

Section 35 requires a licensee, on request, to produce the licence for inspection to a member of the Garda Síochána, a designated member of staff of the authority or any person for whom the licensee is providing a security service under the licence. Where the licensee is a company, the licence shall be displayed in a conspicuous place in the company's registered office.

In so far as offences are concerned, section 36 requires an applicant for a licence or a licensee who has been convicted of an offence, or against whom proceedings are pending, to notify the authority of the conviction or the proceedings in the prescribed manner and within the prescribed period. It is essential for the purposes of the Bill that the provider of a security service shall not provide such a service without a licence.

Section 37 prohibits a person from advertising security services unless he or she is licensed. Section 38 makes it an offence to employ a person who does not hold a licence. It will, however, be a defence to prove that the person providing the security service had produced a licence or identity card to the defendant.

An effective complaints procedure is an essential requirement in a legislative measure of this type and provision in this regard is made in section 39. A person may make a complaint of misconduct against a licensee provided that it is made in good faith and not frivolous or vexatious. If, following investigation, the complaint is upheld, the authority may take appropriate action. The authority's options range from revocation of the licence to the issuing of a caution or advice to the licensee concerned.

In addition to a complaints procedure, a proper appeals system is also essential. Section 40 provides for the establishment of a second body to be called the Private Security Appeal Board which will hear and determine appeals against decisions of the authority. An applicant or licensee may appeal against any decision of the authority to refuse to grant or renew a licence, suspend or revoke a licence or take action on foot of a complaint under section 39. Details of the composition and operation of the appeal board and the procedures for handling appeals are set out in Schedule 2. Section 41 makes provision for an appeal to the High Court on any question of law arising from a determination by the appeal board.

Part 6 of the Bill relates to the provision of security services in the State by persons who hold licences from comparable licensing authorities in other member states. The right of establishment is set out in Article 43 of the Treaty Establishing the European Community. According to Article 43, restrictions on the establishment of branches or subsidiaries by nationals of any member state in the territory of any member state are prohibited. Freedom of establishment also includes the right to take up and pursue activities as a self-employed person and to establish and manage companies. Article 49 of the same treaty prohibits restrictions on the freedom to provide services within the Community by nationals of member states. National regulations are, therefore, not permitted to hinder the rights of establishment and freedom to provide services. The Court of Justice of the European Communities has made this clear in successive rulings. Member states may retain their domestic laws but these cannot be used to restrict the provision of services from elsewhere in the Community. Many of the services in which the private security industry is involved, including transportation of works of art or high value goods, require the crossing of national frontiers.

A transnational dimension can also arise where a company in one member state wishes to tender for a private security contract in another or where an individual applies for a job in one member state having acquired work experience or a qualification in another. Part 6 contains a set of procedures which will permit a person — referred to in the Bill as a "relevant person" — who holds a licence from a comparable authority in another EU member state — referred to as a "corresponding authority" — to provide a security service in the State. A number of safeguards are included in Part 6 to ensure persons who would not qualify for an Irish licence due to criminal convictions or inadequate qualifications cannot circumvent our standards by procuring, by whatever means, a licence to provide a security service from another member state. This matter was discussed on Committee Stage in the Dáil.

Section 44 provides that relevant persons must inform the authority of convictions before providing a security service in the State. Section 45 provides that the authority may, if satisfied that a relevant person is not or no longer a fit and proper person to provide a security service, prohibit that person from providing the service. Schedule 3 modifies the Bill in its application to relevant persons.

Part 7 contains miscellaneous provisions. Section 48 deals with offences and empowers the authority to bring and prosecute summary proceedings for an offence under the Bill. Section 49 contains provisions of a procedural nature which relate to the receipt of notifications or notices while section 50 specifies when decisions of the authority take effect.

It is neither possible nor appropriate to make provision for detailed implementation of all aspects of the licensing system in a Bill such as this. The authority will have a crucial role to play in establishing the categories of licences to be issued, the forms of licences and identity cards, the qualifications required for particular categories of licence and related issues. Section 51 provides for the making of regulations to deal with these detailed issues.

It is not feasible to bring the entire licensing system into operation on a set date. I envisage a phased introduction of the new requirements which will avoid bottlenecks. I want to ensure there is no unjustified interruption of legitimate business when the new provisions come into force. Section 52 contains certain transitional provisions to facilitate a smooth entry into force of the new licensing system.

Schedule 1 provides for various procedures of the authority to deal with the appointment of advisory committees, consultants and advisers, meetings of the authority and the accountability of its chief executive to the Committee of Public Accounts and other Oireachtas committees. Part 1 of Schedule 2 provides for the establishment of the Private Security Appeal Board and related matters, including appointment of the chairman, procedures of the board, reports to the Minister and the declaration and disclosure of interests. Part 2 contains details of the operation of the appeals system. As I mentioned, Schedule 3 modifies the Bill as it relates to relevant persons.

As one hopes, the Bill is being introduced with the active involvement and support of the private security services industry. It reflects the clear public interest in the statutory regulation of the industry. It has had a long gestation and been considered over an extended period. The time has come to act decisively to conclude the process of consideration by the Houses of the Oireachtas. If modifications to the legislation are required, they can be made in the context of a system which is up and running. The time for consideration by the Houses is fast running out.

I have good reason to state there is significant potential for people to abuse the facade of security services to conduct extortion rackets. Some publicans have found themselves facing groups presenting as would-be applicants for door work while conveying the very clear message that if they are not taken on, the publicans will encounter a great deal of trouble. People are using the façade of security services to extract money from legitimate businesses. This is a serious state of affairs and is not an exaggeration. Dark forces within our society have used the veneer of security services to extort money and engage in illegal activities, including, I regret to say, trading in drugs. This legislation is urgently needed.

I am confident that the provisions of the Bill, when enacted, will serve to enhance the standing and image of the private security industry, provide quality assurance for customers and reassure the public that high standards will be applied and maintained. I commend the Bill to the House.