Dinny McGinley (Donegal South West, Fine Gael) | Oireachtas source

I thank Senator Whelan for raising this matter on the Adjournment.

I am speaking on behalf of the Minister for Justice and Equality, Deputy Alan Shatter, who regrets that he is unable to be with us this afternoon.

In the first instance, I would like to point out that the Private Security Authority, established under the Private Security Services Act 2004, as amended, is the statutory body responsible for the regulation and licensing of the private security industry in the State. The authority is an independent agency under the remit of the Department of Justice and Equality.

The 2004 Act, as amended, sets out the activities in the private security industry which are, or will be, subject to licensing. The licensing of installers of security equipment, encompassing intruder alarms, CCTV and access control systems, is one such activity covered by the 2004 legislation. Last year, the Minister, Deputy Shatter consented to the making of regulations, by the PSA, to extend licensing to contractors and private security employers providing security services installing CCTV and access control systems. This completed the authority's licensing of contractors in the electronic security sector with the licensing of contractors involved in installing intruder alarms having commenced back in 2006.

In accordance with these regulations, from 1 October 2012, all existing contractors providing licensable CCTV and access control services must be in possession of an appropriate licence or have an application lodged with the authority. The regulations also provide for the licensing of contractors who maintain intruder alarm systems. The Minister is informed by the authority that the extension of its licensing to these particular sectors was in preparation for a considerable time and that it involved two public consultation stages - both of which were notified to industry stakeholders including bodies representing electrical contractors.

As the Senator will be aware, contractors such as those in the CCTV sector, as part of their application, are required to pay a licence fee to the authority. The authority has informed the Minister that the current fee, which is for a two year licence, was set by the authority in 2005 and has not been increased since. The Senator will no doubt appreciate that the provision of a regulatory environment understandably has cost implications for the industry but the public and Industry itself both benefit from regulation. The Minister is assured by the authority that it has made every effort to ensure that costs are kept to a minimum and has also introduced an instalment payment option to assist contractors with paying for their licence. The authority is aware of the genuine hardship faced, in particular, by small businesses in light of the current economic climate and so continues to seek ways of easing the burden of regulation while at the same time meeting its statutory obligations.

As regards the fees charged by the PSA, notwithstanding that while the current PSA fee structure has remained unchanged since 2005, the Minister has been aware for some time that the fee level has been the subject of much criticism, particularly following the introduction of the newest phase of regulation when the CCTV and access control sectors were brought within its scope. As correctly indicated by the Senator, this phase of regulation brought some elements of the work of electrical contractors within the scope of the PSA for the first time - many of whom are smaller operators with relatively small turnover. The Minister appreciates that the current fee may well be unduly burdensome for such operators. Being mindful of the plight of such contractors, the Department of Justice and Equality and the PSA have been in consultation about a review of the fees in question. Any change in fees requires a new statutory instrument to be drafted and the Department of Justice and Equality is in contact with the Office of the Parliamentary Counsel in that regard. It is expected that the process will be completed in the near future and the Minister, Deputy Shatter will then be in a position to make an announcement on the matter.

Since the PSA first began licensing in 2006, there has been a welcome transformation of the private security industry which the Senator will appreciate has had many positive benefits for the industry, the wider business community and the public. The authority has been in successful in combatting what were originally quite low standards in the industry, consumer confidence has improved overall, all contractors are now operating to the same standards, are tax compliant, vetted by the Garda and subject to ongoing monitoring and inspections by the authority. The PSA, through its work has led to significantly improved compliance generally in areas such as taxation and welfare payments.