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March 8, 2011

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The PSA versus the SIA: why the Emerald Isle is smiling

Have you ever wondered why Irish people always seem so jolly? I have.

Perhaps it’s down to a spirit that has had to overcome so much adversity over centuries of change and a political turbulence that still persists.

Or maybe it’s just their strong sense of community that means every person is looked after in some way? I don’t know.

What I have learned is that Ireland’s security companies are enjoying a licensing scheme that’s both valuable and productive.

Clear vision in place

The Private Security Authority was formed in Ireland during the same year as the Private Security Services Act was published (in 2004, to be precise), and the Authority’s vision is a clear one:

“Our purpose is to instil customer and public confidence in this multi-stranded, multi-faceted business with the introduction, control and management of a comprehensive, standard-driven licensing system for all individuals and companies involved in the industry, and to do so in a manner that’s sensitive to the needs of the market”

Created during the same period as the UK’s own Security Industry Authority (SIA), then, the Private Security Authority seems to have innovative practices in place that overcome some of the weaker points of the system deployed in Britain.

For instance, the scheme operated in Ireland requires in-house security operations to be licensed. This stance has proven to be a productive one, and ensures that fairness is philosophically enmeshed in the licensing process.

Moreover, it creates a simple formula of training and criminality checks that’s founded as a base level for all officers.

This has not reduced the efforts for wider training initiatives from organisations with a stronger focus on lifelong learning, but has meant that, at point of call, any security operative found without a licence is immediately penalised.

Reducing overall costs of the scheme

Moreover, wider licensing of this nature has had the profound effect of reducing the overall costs of the licensing scheme, which are as follows:

  • Door supervisor (licensed premises) licence: euro 130
  • Security officer (static) licence: euro 80
  • Both sectors (applied for at the same time): euro 190

This compares favourably when you consider the SIA’s charge of GB pound 245.00.

However, the SIA does – and all credit is due here, literally – reduce the cost of a second licence for operation in another security field to just GB pound 122.50 (50% of the original cost). This means the average officer with two licences will be charged GB pound 367.50 for a dual purpose licence as opposed to the 190 Euros an Irish equivalent would pay.

Of course, that doesn’t take into account the fact that the SIA has created a prescriptive and multi-disciplined framework of licence cards within the UK security sector. This ensures some officers could be ‘stung’ with even higher licensing costs.

Gold scheme for contractors

The Private Security Authority has also created a gold licensing scheme for contractors. Detailed qualification rights therein have ensured that many of the former rogues in the industry are now long gone.

Ill-equipped to cope with the demands of the contractor licensing scheme, and with a managerial vacuum that makes the notion one of high impossibilities, they have been forced out of the equation.

In turn, this has meant that unlicensed cash-in-hand officers from companies working out of the spare bedroom of the director’s home have become a thing of the past.

Here in the UK, early assurances that membership of the SIA’s own Approved Contractor Scheme would be of valuable benefit have, in my opinion, proven worthless.

More and more companies are waking up to this realisation, and deciding that the cost of membership has no real incentive given that, for example, the initial benefit of the licence dispensation scheme is no longer required.

Most companies registered with the ACS will have few Licence Dispensation Notices (LDNs) in place. My own firm, AA Security, has none. When in discussion with our auditors, we were not surprised at all to learn that others were in a similar position.

With the passage of time, contractors on the ACS have been able to reduce their dependency on LDNs through good management processes, yet there is no reward or discount for doing so.

We are still required to pay the automatic charge for the facility and for the entirety of our workforce as part of what I believe to be a contemptuous disregard for our professional achievements.

The scheme is not marketed as well as it should be, and has become over burdensome with its particular drive on paper-based evidence.

Recognition from the Regulator

AA Security is within the top 10% of achievers based on performance within the SIA’s ACS and yet, like others who have committed to best quality standards, no outward recognition is forthcoming from the Regulator.

If we truly want the industry to improve then surely we need to highlight and promote Best Practice at every possible juncture?

The ACS Pacesetters scheme devised by The Security Watchdog is an innovative one designed to promote achievement. We subscribe to it as we recognise the potential benefit in doing so, but surely reward for good behaviour from the SIA would hold more sway?

Many organisations and individuals in the industry are concerned about whether or not the SIA will continue at all after the coalition Government’s decision to remove certain quangos.

Licensing and regulation will continue and the Regulator, if abolished, will likely reform with a similar structure and a ‘same old, same old’ strategy and process. For some that might be comforting. However, I’m concerned that retaining the service status quo will be a regressive step.

Considering the needs of Stakeholders

The SIA has been in operation for in excess of five years, which is the normal bedding-in period for many organisations.

Now is the most appropriate time for the Regulator to consider the needs of its Stakeholders, particularly so while we drag our way out of an economic quagmire that’s no fault of our own.

Neither the licensing process nor the ACS established by the SIA have totally removed the rogue organisations or the cash-in-hand philosophy that so badly tarnished our industry’s reputation pre-regulation.

My research would suggest that the adoption of business registration for all organisations working in the industry would be the best way forward for our sector. It may seem spurious or biased, but most sectors work in the same way. Ireland, through the PSA, has shown the way forward.

The longer term argument regarding in-house security is one that should be addressed as it would have a direct economic benefit (in addition to maintaining the fairness and uniformity agenda).

Also, any cost saving in the current climate will surely bring much needed succour.

It might be a long way to Tipperary, then, but my heart is right there.

Examining the Green Procurement Code

The Mayor of London has set himself a very adventurous target of reducing the Capital’s carbon emissions by 60% come 2025.

This is a very significant goal for a city once widely known for its thick smog and polluted river.

Boris Johnson is putting his heart and soul into trying to achieve this goal (and with good reason, too, judging by the lack of understanding of the factors pertaining to environmental impact among the commercial sector’s leaders).

As a consequence of this commitment, one outcome has been the introduction of the Mayor of London’s Green Procurement Code.

A ghastly title, I know, with a rather perturbing level of grandiloquence to boot. However, the scheme itself is quite idiot-proof (or user-friendly, if you prefer). Indeed, closer inspection of the title elucidates that the scheme is nothing if not a driver for buying green.

Purchasing procedures of organisations

The Green Procurement Code delves deep into the purchasing processes of organisations and, by simple methodology, guides participants through Best Practice measures aimed at reducing their carbon footprint.

All participants are encouraged to constantly improve their overall ‘green performance’. Free access to one seminar every year ensures that members can evidence the Continuing Professional Development (CPD) of their purchasing team.

A particular focus of the programme recognises the need for management and behavioural change. As such, organisations committing to the scheme will be assessed on the internal communication of green purchasing requirements and an understanding of the same.

The full expectation is for a top down and bottom up approach to green purchasing that’s fully inclusive of all Stakeholders. There’s also a desire for solid commitments and targets throughout a given organisation, with appropriate evaluation and feedback of success as required.

Technical product specifications and the sourcing of green products must be evidenced and logged on an online reporting mechanism.

Moreover, a general understanding and embedding of the broad range of environmental considerations in procurement – from energy efficiency through to the use of sustainable natural resources, and from buying recycled content products to minimising vehicle emissions – is expected from all signatories to the Code.

The online facility is remarkable in its promotion of green products to improve sustainability, and much general advice and guidance is given on how to operate your business with a strong ethic centred on minimisation of adverse environmental impact.

Growing in recognition

The online facility duly states: “The Green Procurement Code is unique in the UK and Europe. No other green procurement initiative combines a support service with an extensive survey that leads to performance benchmarking, the sharing of Best Practice and recognition through awards for leading participants”

This is the important bit, and I emphasise that the scheme is growing in recognition (notably with respect to tendering for work in London).

Many security organisations will already have joined the Compete for London facility, and will have been questioned on whether or not they are working towards (or have attained) the Green Procurement Code.

The marque is certainly becoming a ‘must have’ or ‘preferred status’ for many purchasers in London, in turn rendering this accreditation one that’s worth its weight in gold.

Since October 2007, members of the Green Procurement Code have spent over GB pound 742 million on green products and diverted 191,131 tonnes of waste from landfill. This represents a saving of 78,863 tonnes of CO2 emissions.

Signatories also make a valuable contribution to the green economy: reported purchases from over 680 suppliers have supported more than 1,300 jobs.

Benchmarking against other participants

There’s a grading system that enables corporations to benchmark themselves against other participants. The Gold Standard is a vaunted position to hold. Although we’ve installed solar panels and have a strong managerial commitment to Corporate Social Responsibility, to date AA Security has only attained the Silver Standard.

I say ‘only’, but we’ve been advised that it’s rare for a new member to attain the Silver Standard on first inspection. With the passage of time, more embedding of our existing processes and a little tweaking, we could gain the Gold Standard.

With that in mind, we have already set a target for achievement of the Gold mark by 2012. Call it our Olympic Gold, if you like.

Wilson Chowdhry is managing director of AA Security

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