The Security Industry Authority’s 2012 Stakeholder Conference took place yesterday at the impressive Savoy Place, London home of the Institute of Engineering and Technology.
Attended by 150 guests from across the security sector, the annual event featured a keynote speech from the Regulator’s chairman Baroness Ruth Henig as well as informative presentations from – among others – the SIA’s director of service delivery Steve McCormick, John Montague – the Regulator’s assistant director of compliance and investigation – and Mike Bluestone, director of security consulting at Corps Security and, of course, chairman of The Security Institute.
Following an introduction to the day courtesy of the SIA’s vice chairman Robin Dahlberg, first to the lectern was Lord Taylor of Holbeach CBE, the recently-appointed Home Office minister who has taken on the responsibilities around regulation and the SIA that were previously the domain of Lynne Featherstone MP.
The assembled audience members were extremely keen to hear what Lord Taylor would say in relation to the future of regulation and licensing and timetables for the ‘transition to a new regulatory regime’.
Here’s the minister’s speech in full…
Meeting representatives from the security sector
“I’m very pleased that the Security Industry Authority invited me to give the opening speech at its annual Stakeholder Conference.
“As you will probably be aware I’m fairly new in post [at the Home Office], although I have been interested in issues affecting the security sector for some time, so I very much welcomed the chance to get to meet and talk to people who work in the private security industry, as well as take the opportunity to set out to you in a little more detail the Government’s direction of travel for the future regulation of the industry.
“On that note, I’ve asked my officials to arrange a meeting at which I can meet some representatives of the security industry so I look forward to meeting some of you again in the near future.
“I recently became the Home Office Lords minister and the minister for criminal information. One of my responsibilities is the private security industry. I took over this particular duty from my predecessor Lynne Featherstone.
“Previously, I was a minister at the Department for Environment, Food and Rural Affairs and, before that, a spokesman for the Cabinet Office. I have been a member of the House of Lords for the last six and a half years.
“Some of you may know that my background is working in a family business supplying many of Britain’s garden centres with bulbs. I come from the real world with a down to earth outlook.”
In praise of Baroness Ruth Henig
“Reforming how the private security industry is regulated is one of the important opportunities ahead of us. Indeed, yesterday I met with Baroness Ruth Henig and Bill Butler to discuss how we can take reforms forward.
“As you may have heard, Ruth is to stand down from her post as chairman of the SIA on 14 January at the end of her second term of appointment.
“I would like to thank Ruth for her enthusiasm and commitment to the SIA during the past six years. She has led the Regulator through challenging times and has been inspirational in her support of her chief executive and employees of the SIA. I wish her all the best for the future. A new chairman will be appointed in due course.
“Before I move onto the future regulation of the industry I wanted to say that, since its creation in 2003, the SIA – along with many of you – has worked hard to raise standards across the private security industry. A great deal of progress has been made in achieving this goal, in addition to reducing criminality and tackling organised crime.
“Therefore, I wanted to thank everyone who has played a part in this and, in particular, our partners at the SIA. Raising standards and combating criminality – notably organised crime – are essential to what the Government wants the SIA to continue to do in the future.”
Significant development for the security sector
“It’s worth reflecting that over the last nine years or so since the SIA’s inception, the industry has developed significantly. It is exactly because of these improvements in how the industry operates that the Government believes the time is right to give the industry a greater say in how it’s regulated, as well as to give businesses more responsibility for the individuals they employ.
“I raise these achievements because I think it’s important that they’re recognised as the basis which the Government builds on to reform regulation of the industry in the future.
“Some of you may want to know more of the detail of the Government’s proposed reforms. I’m aware that there have been a lot of discussions and speeches about the future regulation of the industry at events such as this over the past two years, and you may even be a bit fed up with hearing about changes which haven’t yet happened nor had an impact on your businesses.
“I hope I can help to address both of these issues. It may be useful for me to set out clearly what the Government intends to achieve by reforming how the industry is regulated, so let me quickly set out those aims.
“First, the Government wants greater transparency and accountability for the industry in terms of how it’s regulated. This means that the industry will have greater responsibility for regulatory measures and be more able to hold the Security Industry Authority to account.
“Second, the Government wants to achieve deregulation so that businesses like those that many of you run or work for aren’t over-burdened by Government regulation and red tape. This will give you more time and resources to focus on your business’ core needs and, hopefully, grow your operation.
“Both of these objectives help to achieve a third objective, which is to lower the cost and burden of regulation on the industry and deliver better value for money. This will realise significant benefits for you, your companies and the industry.”
Raising standards, combating criminality
“The final objective is something I’ve already outlined, which is that the SIA continues to raise standards, combat criminality – in particular organised criminality – within the industry and continues to work to keep the public safe.
“So what about action? The Home Office is in the process of finalising a public consultation on the preferred approach for future regulation of the private security industry. This is currently at the final stage of internal Government approval and should be launched shortly.
“This consultation document has been developed in partnership with industry representatives via a strategic consultation group chaired by the Regulator. Therefore, the regulatory model that it proposes has been designed by industry for industry.
“The consultation is a very important step because it will be the first time the Government formally sets out the details of our proposal, and the first opportunity for many of you to provide your views. Your responses to the consultation will help to ensure effective measures are put in place. I therefore encourage everyone in this room to take part in the process and would encourage all your colleagues to do so as well.”
What about the Government’s proposed reforms?
“What are the Government’s proposed reforms? Our intention is to put in place a regulatory regime thats focused on businesses rather than individuals. Under a business regulation regime the SIA would be responsible for regulating businesses, with those businesses needing to meet a minimum standard before being able to operate in the industry.
“At the same time, a new process would be put in place for individuals to become licensed, which would rely primarily on normal recruitment processes, avoid any duplication of effort and reduce the SIA’s role.
“The central element of this new process is that businesses will undertake some regulatory checks on the individuals they employ or, if they prefer, ask a third party to do so. The only check on individuals that would continue to be carried out by the SIA would be in relation to criminality. This will enable us to reduce the costs of the current licensing process and give businesses greater responsibility for the individual licensing process.
“Taken together, these reforms will achieve an overall reduction in the regulatory cost and burden on your industry.”
The timings for regulatory change
“Finally, I would like to talk about the timing for introducing reforms. I know this a crucial issue for you.
“I’m keen that reforms are now taken forward with some pace. Once your views from the consultation have been taken on board, the Home Office will need to design legislation to implement elements of the regime. I have asked for this legislation to be put in place by October next year. My officials are currently working with the SIA to discuss a sensible timescale for the SIA to start to receive and process your business licence applications once legislation is in place.
“There are other reforms that the Government and the SIA would like to achieve – such as enhancing the enforcement powers of the Regulator – but which require primary legislation. However, the Government has decided that rather than wait for primary legislation before undertaking any reform, it will put in place what can be achieved now – which is a business regulation regime.
“In effect, this means that there will be a phased transition for reform with business regulation and a new individual licensing system coming first and other Government ambitions for reform coming later. The consultation document sets out this phased approach in more detail and seeks views on whether you think the timings are right.
“My key message, though, is that Home Office officials and the SIA are working closely together to deliver a business regulation regime by the end of next year in line with what the Government understands to be the industry’s aspirations.”
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