Speech to the New Zealand Security Conference
Thank you for inviting me to speak today. I understand the main topic you'd like to discuss is the Private Security Personnel and Private Investigators Bill, and I'm happy to take questions for about 10 minutes afterwards.
Can I thank the New Zealand Security Association for hosting this conference. I would also like to acknowledge their valuable input into this legislation.
I'm sure you know that the private security industry in New Zealand is currently regulated by the Private Investigators and Security Guards Act, which is over 35 years old.
As we all know, there have been considerable changes in the industry over this time.
The Private Security Personnel and Private Investigators Bill aims to update and modernise the law regulating the private security industry.
I am pleased to tell you that since I spoke to you last year the Bill has passed through its several/final stages of the Parliamentary process and is now very close to becoming law.
The Bill was reported back by select committee at the end of March this year. More recently, the Bill passed its second reading and committee stages in Parliament last week.
Several changes have been made to the Bill since it was introduced to Parliament, which I'll explain in further detail.
Just as the current legislation does, the new Bill limits who can provide private security services.
It does that by requiring certain security personnel to hold a licence or certificate of approval, and sets the criteria to obtain one. This now includes screening for certain criminal convictions.
The Bill also extends the requirement to hold a licence or certificate of approval to two new categories of security personnel, "crowd controllers" and "personal guards". The definition of crowd controller includes bouncers at bars and pubs.
Crowd controllers will need a licence or certificate of approval, even if they are directly employed as in-house security by a bar or other business.
A licence will need to be held by anyone operating a business that provides:
•crowd control services, including bouncers in bars;
•services guarding persons or property;
•confidential document destruction services;
•private investigation services; or
•services that involve entering another person's premises to install, repair or remove security devices, or to advise people on the purchase of certain security services.
Anyone who is employed or engaged by a licensee to do these types of work will require a certificate of approval.
Volunteers will not be captured by the regime.
In-house security personnel will not require a certificate of approval. This is because employers have an incentive to check the suitability of their employees and monitor their performance, and are in the best position to do so.
As I mentioned earlier, however, there is an exception for crowd controllers. All crowd controllers will require a certificate of approval, even if their employer doesn't require a licence.
This means, for example, that a bouncer employed directly by a bar, instead of a security firm that is contracted by the bar, will require a certificate of approval.
This approach reflects the significant risk of harm with unsuitable people performing this type of role, which by its nature can involve physical confrontation.
Another important feature of the Bill is that it allows regulations to be made requiring security personnel to undertake training.
At this stage, the Government intends to require personal guards, property guards and crowd controllers to undertake training.
It is inevitable that people in these roles will, from time to time, find themselves involved in situations that could result in a physical confrontation.
It is in the best interests of everyone that they are properly equipped to deal with such situations.
The Bill also addresses the problems of unlicensed operators and staff working without a certificate of approval.
The penalties for this have been increased. The fine for operating an unlicensed security business will go up from $2,000 to $40,000 for an individual and $60,000 for a company. This should make operating without a licence much less attractive.
Of course, penalties are unlikely to be an effective deterrent unless the law is properly enforced.
For this reason the Bill establishes a dedicated enforcement unit - the Complaints, Investigation and Prosecution Unit. This unit will investigate complaints, provide information to the Licensing Authority and prosecute offences.
The changes made by the Bill will also reduce unnecessary costs and bureaucracy. In particular, licences and certificates of approval will now only have to be renewed every five years, instead of annually.
In each of the other years, licensees will have to submit an annual return to the new Licensing Authority. This will update contact details and the details of any employees or contractors with certificates of approval.
This will be a relief for license holders who currently have to advertise in newspapers every year they want a renewal.
Certificate holders will not be required to submit an annual return. They will, however, be required to update their contact details and let the Licensing Authority know if their circumstances have changed in a way that might affect their eligibility for a certificate - with a criminal conviction, for example.
Overall I expect this will make the process simpler and more user-friendly. It will increase efficiency, speed up processing and, in turn, lower the cost for applicants.
As I mentioned earlier, several changes have been made to the Bill since it was first introduced to Parliament. Most of these changes were made to facilitate the smooth running of the regime and to balance the interests of those affected by it.
The Government proposed some amendments during the Bill's committee of the whole House stage last week, all of which were agreed to by Parliament.
The main change to note is that the commencement date has changed from 1 December 2010 to 1 April 2011. This allows more time for the industry to prepare for the new regime.
The select committee, which reported back to Parliament in March this year, recommended several changes to the Bill. Many of these changes clarify aspects of the Bill and improve its operation. I am pleased that all of the Committee's recommendations were agreed to by Parliament and are now reflected in the Bill.
The grounds of disqualification for a licence or certificate have been extended to include offences against the Arms Act 1983, the Harassment Act 1997, offences related to intimate covert filming under the Crimes Act 1961 and some offences under the Fair Trading Act 1986.
Convictions for these offences are relevant to a person's suitability for a security role.
Another change is that licensees and certificate holders will be required to wear an identity badge when they are working, instead of having to wear their actual licence or certificate. This change protects the safety and privacy of security personnel, as licences and certificates may include some personal details.
Private investigators are not required to wear an identity badge because of the nature of their work. They are, however, still required to produce their licence or certificate upon request from certain people.
The Bill provides a formal process for making a complaint about a licensee or certificate holder. The class of person who can make a complaint to the Licensing Authority has been extended from those with a "personal interest" in the matter to anyone who has "an interest greater than that of the public".
This gives a broader range of people the ability to make formal complaints to the Licensing Authority
The Bill has also been amended to give applicants a further right of appeal against certain decisions of the Licensing Authority to the High Court, on questions of law.
Last, but not least, the select committee removed the controversial clause 66 from the Bill. Clause 66 carried over a provision from the current legislation which prohibits private investigators from taking or using photographs and making or using audio-recordings without the subject's written consent.
This restriction has been controversial for many years and generated significant debate before select committee. The provision is outdated and can hinder the important and legitimate work of private investigators, such as investigating fraud.
Clause 66 will be replaced with a code of conduct for private investigators and their employees. The code will be set out in regulations and will be enforceable through the complaints and disciplinary regime in the Bill.
The new regime will affect most of you here today. Therefore, there is some important information and key dates you need be aware of.
Firstly, it is important that you read the definitions of the various types of security personnel in the Bill carefully so that you can determine whether the Bill applies to your particular area of work.
Secondly, provisions have been added to the Bill to help the transition of existing licences and certificates to the new regime.
If you currently hold a licence or a certificate of approval under the Private Investigators and Security Guards Act 1974 immediately before the new regime kicks in, then you will be deemed to hold one under the new regime. This means you will not have to go through the usual renewal process early next year.
Your licence or certificate will remain valid, but you must make an application under the new regime by 1 June 2011. If you do not submit your application in time, your licence or certificate will expire the following day.
If you wish to work as one of the new classes of security personnel - a crowd controller or a personal guard - then you must hold a licence or certificate of approval for this type of work under the new regime.
The date by which you must have a licence or certificate for this type of work has yet to be determined, but will not be any earlier than 1 June 2011. This date will be announced well in advance.
However, it is important that you submit your application as early as possible after that date is announced. You will be able to apply under the new regime from 1 April 2011. It is in your interest to beat the rush and apply early.
Finally, as I mentioned earlier, the Government intends to require personal guards, property guards and crowd controllers to be trained. The detail of these training requirements, including the timing of their introduction, will be determined when the regulations are developed after the Bill becomes law.
Decisions on when people must complete their training will take into account the nature of the requirements and how long is reasonable to allow people to comply.
This new requirement will benefit not only the public, but also the staff themselves, by protecting their safety and increasing the value of their licence or certificate.
Finally, I'm confident that the Bill achieves reform that is proportionate to the risks that many in the industry face. Most members of the private security industry are hard-working professionals in whom New Zealanders can place their complete trust.
However, one of the purposes of regulation is to encourage all members of the industry to meet the same high standards. I believe that this Bill will achieve that goal in an efficient and cost-effective way.
The challenge for introducing this kind of regulation is to get the balance right between the risks faced and the cost of regulation. I think this new regime achieves a good balance.
Thank you again for the opportunity to be a part of this conference.