Public Bodies Bill [HL]

Baroness Neville-Jones Excerpts

Monday 28th February 2011 Lords Chamber

[Lord Kennedy of Southwark]

My Lords, I rise to support my noble friend Lady Royall of Blaisdon. I am most surprised that the Government proposed the abolition of the Security Industry Authority in the first place and that they have not moved on this matter. The Security Industry Authority is a great success story. It has professionalised the private security industry, driven out criminality and ensured that people are safe when attending a variety of events in pubs, clubs and elsewhere. I am aware that they have their own licensing body. I was at a football match on Saturday and it was reassuring, walking around the ground, to see security professionals with accreditation on their arms. How different that was only a few years ago.

I read the Government’s brief. It provides no reassurance on the position going forward. In the document, the Government say that Ministers decided that there is no evidence that the Security Industry Authority carried out a function that needed to be undertaken by a public body. Will the Minister expand on that in her response? Also, whatever is decided in the future, it must surely be inferior to what we have at present, if for no other reason than the fact, as my noble friend Lord Foulkes said, that different systems operate different authorities round the country. It is ridiculous.

I also ask, as my noble friend Lady Royall did, how the Government will ensure that criminality is kept out of the industry. I am pleased that the Government say in the briefing note that there will be little change this side of the Olympics in 2012—though, for me, that highlights the weakness of the proposals in the first place. I would like the Minister to comment on that in her response as well.

I agree with the comments of my noble friend Lord Whitty about the respectable and less respectable arms of the industry. I pay tribute to my noble friend Lady Henig for all the work that she has done. In conclusion, I hope that the Minister has something to say and is at least prepared to take away this proposal and come back with something on Report.

[The Minister of State, Home Office (Baroness Neville-Jones)]

My Lords, I thank the noble Lords who have spoken in this debate and made some important points. Many of them I accept. In putting forward the Government’s proposed measure, I hope to convince the Committee that many of the anxieties they have expressed will prove unfounded.

The Government intend to resist this amendment, which would remove the Security Industry Authority from the list of public bodies that Ministers will be able to abolish via secondary legislation. We will do so because we consider it unnecessary. I want to explain what the Government intend to do because I believe that many of the things that have been said on the Floor this evening perhaps represent a situation that no longer pertains.

Before I do that, I join other noble Lords in expressing my appreciation for the work done by the noble Baroness, Lady Henig, as chairman of the SIA. There is no doubt that under her guidance the authority has raised the standards of the industry, which is one of the things that give us confidence that we can move on to a different regime. I will come back to that in a moment. Many of the things that she said are points on which there is a very large measure of agreement between her, the Government and, I hope, other Members of your Lordships' House.

In looking at the SIA, the Government have applied a number of tests to retention in the public bodies review. We concluded that there was not compelling evidence that, given the standards that are now being reached, the SIA’s functions need to continue to be performed by a public body. The SIA was established by the Private Security Industry Act 2001, as has been said, and it has succeeded, as was the intention, in reducing criminality in the security industry. It also set out to improve standards. The approval system has undoubtedly resulted in improvements in those standards and uses the compulsory licensing of individuals to achieve the reduction in criminality. It carries out criminality and identity checks in addition to confirming the training that has to be completed before issuing a licence.

The Government do not intend that any alternative regime should result in a lowering of these standards. Licensing began in 2004, and there are currently more than 350,000 licensed individuals. The SIA has done something else important, which is to raise standards through the voluntary approved contractor scheme that allows companies to demonstrate that they meet a wide range of standards and are therefore worthy of being accredited as approved providers of security industry services. That is also something that will continue. More than 650 companies employing about two-thirds of the industry now have the ACS standard. That is a record of achievement and I pay tribute to it.

On that basis, however, we believe that it is now right to move over time to a new regulatory regime. I stress that it will be a regulatory regime. The private security industry has matured under the aegis of the SIA since SIA regulation began, and there is evidence of increased standards in the industry. We believe that employers should now be given more responsibility for making safe and legal recruitment decisions in the same way as employers in other professions. In other words, they should not have normal responsibilities removed from them.

As was mentioned in the debate, the security industry has formed a so-called security alliance of trade bodies which by their own reckoning represent more than 80 per cent of the regulated security industry. This group recently wrote to the Parliamentary Under-Secretary responsible for equalities and criminal information, Miss Lynne Featherstone, and outlined its willingness to work with the Government. It has already been working with the SIA to shape the future regulation of its industry, as the noble Baroness, Lady Henig, mentioned. Indeed, we intend to build on the work that has already been done. There is no doubt that challenges still lie ahead for the industry, but I have a slightly different picture of the attitude of the industry and some of those who are affected by the changes that lie ahead. It is more positive than has been noted in discussions so far. There is no doubt that they are willing. They have shown considerable alacrity in stepping up to take responsibility. That should encourage noble Lords.

[Baroness Meacher]

The Minister has repeatedly referred to the industry as though it was some uniform set of organisations. Does she accept that there is a tremendous divide between the reputable end of the industry and these highly dubious individuals and pairs of people who go about taking work in the security industry? You cannot refer to them in the same breath—and certainly not in the same phrase. Does she accept that?

[Baroness Neville-Jones]

I accept that this industry—I do not know what other term I can use: perhaps “this occupation”—has a wide spectrum of activities and individuals in it. I will come to that in a moment. I want to encourage your Lordships to have more confidence that those in this industry can be relied on and are willing to take further responsibility and be more accountable for their own actions in future. I understand that there is some concern that if the SIA is abolished there will be no effective regulation of the private security industry. I want to offer reassurance on that point. We are not going to do anything immediate. We have been convinced by those who have argued that that would be unwise and that it would not be sensible to do that. The regulation of the private security industry will continue in its present form. The SIA will not be abolished until the new regulatory regime has been fully established and is properly functioning.

Since the outcome of the public bodies review was announced by the Cabinet Office on 14 October, Home Office Ministers and officials have been in close contact with the SIA to discuss how to take this forward. The Parliamentary Under-Secretary of State for Equalities and Criminal Information, who is the lead Home Office Minister for the SIA, has met the SIA representatives. The Home Secretary herself has been in correspondence with the noble Baroness, Lady Henig, about the future.

Ministers have asked the SIA to work with the private security industry and key stakeholders to put together a detailed plan to achieve a phased transition to a new regulatory regime. We do not intend to do this in anything but careful detail. To inform the plan, the SIA started targeted consultations with stakeholders, including industry and law enforcement partners. The police were mentioned, and they are involved in the consultation process. A detail of the phased introduction of the new regulatory regime that will replace regulation by the SIA will be the product. The SIA started this work by hosting an initial meeting with a number of industry stakeholders on 28 October. I understand that this work is progressing well.

In the Second Reading debate on this Bill on 9 November, the noble Baroness, Lady Henig, stated that the SIA had already agreed with the industry,

“a blueprint for the next few years to move to greater industry involvement in the regulatory regime”.—[Official Report, 9/11/10; col. 133]

She also quoted from a letter that she had had from the Home Secretary in which she very kindly said that she was happy to accede to the Home Secretary’s wish to ensure that,

“any transition to a new regulatory regime is phased in smoothly and takes into account the needs of the industry as well as the priorities of the Government including the devolved Administrations”.

To confirm the point made by the noble Baroness, Lady Royall, the Home Secretary has agreed that there should be no significant change prior to the Olympic Games in 2012. That is in line with a number of measures in other areas in which we are staying any kind of change until after the Olympic Games.

My point in all this is that the SIA itself is involved in the work to move towards something that is described as self-regulation by the private security industry but which is a pretty tough form of self-regulation. I will come back to some of the details in a moment. The SIA plan was presented to Home Office Ministers earlier this month for consideration, and on 16 February there was another meeting with Lynne Featherstone to discuss the plan further. We have now considered and agreed that this will form the basis for moving forward on phased transition. I hope I am reassuring the Committee that this process is being done in careful consultation with the SIA and the industry on the basis of trying to ensure, therefore, that we come out with a regime that offers the same degree of assurance of high standards that has already been established.

As a result of the consultation, we are now in a position to give a few more details of the shape of the new regulatory regime, although the Committee will understand that as we are still in discussion—the whole point of the discussions is to get an agreed format between the parties—not all the details have been decided. So far, the agreed proposals will ensure that responsibility for the private security industry is transferred to a new body for self-regulation as soon as that is sensible after 2012—not before it is sensible and not before the Olympics in 2012. No significant change will happen before that.

Primary legislation will then be needed to set up the new regulatory body that will succeed the SIA. We will ensure that provision is included in a future Home Office Bill. Full transition to the new regime should, we hope, be completed by the end of 2013. Again, this is not a rushed process.

[Lord Foulkes of Cumnock]

Would that be a new regulatory body for England or for the United Kingdom? If only for England, what will the situation be in other parts of United Kingdom?

[Baroness Neville-Jones]

I will come to the noble Lord’s point about the relationship with the devolved Administrations. I have it in mind.

The new regime will also see a significant shift of responsibility from individual workers to businesses. That is one of the changes in structure. We believe that that will be efficient and that it will also reduce regulatory costs and burdens. Instead of every single employee having to be registered separately at a cost of something like £250 each, it will be a business paying for the registration. In getting that registration, businesses will be required to show that they meet a comprehensive set of conditions set by the new body.

The industry itself has a strong interest in ensuring that the standards it sets are maintained and that they are high. Clearly, that has to be one of the really important parts of the new regime. Businesses that fail to meet these comprehensive conditions will have their rights to trade in private security removed. There is no reason to suppose that somehow a transition to another regime will by definition, and automatically, result in a lowering of standards. On the contrary, the industry will have a strong self-interest in ensuring that the cowboys are not allowed in and are not permitted to sully the reputation of an industry that is responsible for its regulation. There is a strong incentive actually to take this regime and make it work well.

It is obviously too early to give full details on costs, but we know that instead of more than 350,000 individuals paying £245 each for licences, much of which is currently paid for by the companies that employ them, the new regime will involve fewer than 5,000 companies having to register, giving considerable saving to the industry.

One of the other things that we are doing, however, is to ensure that the impact on smaller businesses is minimised by reflecting business size in the registration fees in the new regime, so that we do not get a situation in which small companies are paying a flat fee which is the same size as very large ones. They will be gradated. There will also be a sensibly phased transition to the new regime, the details of which are still to be worked out. We do not expect all businesses to move to the regime at the same time. Some of the big boys are clearly going to be ready to move at an early stage. Some of the smaller companies will not necessarily be so ready, and they will be given time to achieve the necessary transition. The big ones that have already met the high standards of the approved contractor scheme will be able and willing to move immediately, but we will maintain mechanisms to ensure that smaller companies, which may not be in the position immediately to transition to the new regime, can continue to trade.

[Lord Kennedy of Southwark]

Does the Minister envisage, in the new regime, that the individuals themselves will undergo CRB checks?

[Baroness Neville-Jones]

Clearly, CRB checks will be relevant. I cannot immediately answer whether they have to be done by the individuals themselves or by their businesses to ensure that they are employing fit and proper people. I would have to write to the noble Lord. The registering of these individuals is another point that worried some noble Lords, who thought that this new method of regulation would somehow allow the bottom end of the industry to have free rein, if I can put it that way. This will not be permitted, because a registry of individuals will also be maintained by the new body to support the needs of the customer and the industry. That will do two things. First, it will ensure that named individuals are known to the regulatory body. Secondly, it will enable those individuals who are of fit and proper standing to move from one company to another with greater ease than would otherwise be the case. Any proposed changes will be subject to parliamentary approval. I thank the SIA for the help that they are giving in moving the industry along to the new regime. We have also asked the SIA if they will take forward the work necessary to ensure the full delivery. This Bill confers an ability to abolish the SIA, but this will be done only at an appropriate time in the transition to the regulatory regime.

Some noble Lords, particularly the noble Lord, Lord Foulkes, raised the issue of the response of the devolved Administrations. Since the correspondence to which he referred, and which I have seen, there have been further contacts with the devolved Administrations, and we are now in consultation with both the Scottish Government and the Northern Ireland Executive. Although it is the case that, on a voluntary basis, both the Scottish Government and the Northern Ireland Executive decided that they would accept the regulation of the SIA, the regulation of the private security industry is a policy decision for the devolved Administrations. It is a devolved matter, which we fully respect, and they will have the opportunity, if they choose to exercise it, to have a different regime. However, I agree with the noble Lord, that, given the nature of the industry, which operates across the country, it would be highly desirable if we could get agreement on a single regime.

[Lord Empey]

I thank the Minister for giving way. The noble Lord, Lord Foulkes of Cumnock, raised this earlier. I declare an interest as a member of the justice committee of the Northern Ireland Executive. The reason why we have a particular issue must be fairly obvious to most Members. We have a lot of people who, sadly, have come from a background where they were, shall I put it, organised, and were able to bring intimidation and pressure and other things to bear. Consequently, we are not talking about precisely the same situation that would exist here, albeit that there are always criminal elements there. The noble Baroness, Lady Henig, asked whether the results of the election in May would make any difference. I think that they will not, because the circumstances that we have had to deal with have a long history and will take some further time yet to work their way out of the system. I do not anticipate any immediate change in the regime following the elections in May.

[Baroness Neville-Jones]

I understand entirely the point that the noble Lord makes. I would say two things about that. Clearly, it is desirable if the regulatory regime that operates throughout the United Kingdom makes it easy for companies to operate across all three Administrations. It does not follow from that that these regimes have to be identical. Certainly, the Home Office takes the view that if, for regional and local needs, variation is needed, we would want to accommodate that. The object is to get an effective regulatory regime that does not put obstacles in the way of companies operating across the country but permits local variation, if it is necessary.

[Lord Foulkes of Cumnock]

I know that there are other topics that we need to discuss and I apologise for intervening, but it looks as if we are moving inevitably towards a separate regime, with a Scottish and a Northern Ireland Security Industry Authority operating as the Security Industry Authority in the UK does at present and a move to a completely different regulatory regime in England. Is that not absolutely daft? It will create huge problems for the security industry. Why are we doing it? Would it not be better to accept what the noble Baroness, Lady Henig, the Security Industry Authority, all the people in the security industry and the Scottish and Northern Irish Parliaments have said, and stick to the present arrangement? Why are the Government so determined to change, when no money is going to be saved and no advantage will be given? Also, I hope that at some point the Minister will answer the question asked by my noble friend Lord Kennedy. If it is so important to keep the authority going for the Olympics, does not that undermine the whole argument for changing at all?

[Baroness Neville-Jones]

To take the noble Lord’s last point, I do not think that it follows that, because one decides not to make a change before a big event, there is no case for change at all. It does not follow at all. It is a sensible thing not to institute change immediately before a big event. However, it does not follow that no change is possible or desirable.

On the noble Lord’s other point, I think that he is jumping to conclusions. It is not our impression that the attitude of the Scottish Government is as negative as he fears it may be. We are in consultation and I do not think that what I said indicated that we were suddenly leaping to entirely different regimes. We are going to have consultation; we believe that it will be possible to have a national regime. We may need, and it may be fitting, to have a certain amount of local variation. However, as I say, that is an area that is still being consulted about. We will work for a sensible outcome and we want one that fits the needs of all UK Administrations.

Some noble Lords raised the issue of wheel clamping. I should mention it briefly. As was rightly mentioned, the Government are taking measures to regulate this area, which include the abolition of the right to clamp and tow away on private land. This legislation will be put into effect through the Protection of Freedoms Bill. The ban will end the abuse by devious firms and their employees who prey on motorists with signage, excessive fees and unscrupulous towing. That regime is going to come to an end, which obviously means that the power does not need to be included in the new regulatory regime.

The noble Baroness asked whether we were also going to cover parking tickets. That is not an SIA issue. It is regulated by the Department for Transport and the DVLA, so it lies outside the scope of this piece of legislation.

The SIA had already proposed the move to a more self-regulatory model before the Government took this issue on. It is in the spirit of building on that that we want to proceed. If the amendment were accepted, it would create an administrative anomaly that would deliver, in our view, no benefits to the public, even after the SIA had successfully implemented its plans to transition to the new regulatory regime. We are endeavouring to work in close co-operation with the existing authority on a transition to a regime that we hope the authority itself will feel fulfils the job, so I hope that, on that basis, the noble Baroness will feel able to withdraw her amendment.

[Lord Whitty]

My Lords, before my noble friend decides what to do with this amendment, I should like to ask a question. I understood the noble Baroness to say that, at the final stage of this, we will need further primary legislation. If that is the case, I do not understand her last point. Why do we need to include the SIA in this Bill if we are going to deal with it later in primary legislation?

[Baroness Neville-Jones]

Having removed the basis for the present regime, we obviously need to have a basis for the new regime.

[Baroness Royall of Blaisdon]

My Lords, I am utterly perplexed at the end of this very good debate. We have a regime which was introduced seven years ago at the behest of the police and the industry itself—the good elements of the industry—as well as Parliamentarians. The Minister herself has said that standards have been raised as a consequence of this good regime; it is working well throughout the United Kingdom. Usually, when there are demands for a regulatory body to be disbanded, it is because the industry itself wants it to be disbanded or because of an exorbitant cost. It seems to me that there is no cost in this; the industry is very happy to meet the bills and is content with the present situation. It looks very much as though the Government are tinkering around the edges—forgive me if it sounds rude—and they are tinkering with a system which is working well and that everybody is content with. I simply do not understand why we are dealing with this issue now.

I recognise, as the noble Baroness has said, that the industry is content to have a phased transition, but it seems to be a complex way of going about things. I do not feel at all reassured by what she has said this evening. The point made by the noble Lord, Lord Ramsbotham, about the interaction between the security industry and the prison service—which, if I had thought about it, I would have been dismayed and concerned about—makes me even more concerned about the proposal before us today. The noble Baroness has talked about the need for transition and has said that consultation is already taking place. She has also said that primary legislation will be needed for a new body, so I am slightly perplexed as to what we are doing now. Notwithstanding that, I am content to withdraw my amendment now, but I will certainly bring back an amendment on Report.