Public Bodies Bill [HL]

Lord Kennedy of Southwark Excerpts

Monday 28th February 2011 Lords Chamber

[Lord Ramsbotham]

My Lords, I add just one concern to what has already been said. That is in relation to the criminal justice system and the use of private security companies in it, coupled with my increasing concern about their involvement in the activities of the UK Border Agency. The Green Paper published by the Ministry of Justice, Breaking the Cycle, envisages increased use of private sector companies, for example in providing probation services. At present they are conducting a number of private sector prisons. Those are under supervision of the Inspectorate of Prisons but the training and the selection of staff has always caused concern.

As far as the UK Border Agency is concerned, the activities of the private sector in such activities as the deportation of people was drawn into high relief the other day with the death of someone who was put under restraint while being deported in an airplane from Heathrow. As a result, the activities of private sector guards have come under greater scrutiny rather than less. Therefore, with this increased activity, I have to admit that I am nervous at the thought of the SIA being removed from a role that it could have if raised to the stature of that work, in favour of self-regulation, which I do not believe is right in this particular area.

[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.

--- Later in debate ---

[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.