Security Insider August/September 2013

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SECURITY

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THE MAGAZINE FOR SECURITY PROFESSIONALS

PUBLISHED BY THE AUSTRALIAN SECURITY INDUSTRY ASSOCIATION

[ M AG A Z I N E ] VOL.18 | ISSUE.4 | SEPT 2013

66 26

PP255003/02390

Delivering the Message on Sham Subcontracting Providing a fair and transparent environment for businesses and consumers | NBN Update

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CONTENTS VOL.18 | ISSUE.4 | SEPTEMBER 2013

22 DELIVERING THE MESSAGE ON SHAM SUBCONTRACTING

20 PROVIDING A FAIR AND TRANSPARENT ENVIRONMENT FOR BUSINESSES AND CONSUMERS

30 NBN UPDATE

36 WHEN CUSTOMERS WON’TPAY

06 | President’s message

Industry to be $350 billion

32 | The geometry of PSIM

08 | Decline in robbery and theft:

market

35 | Monitoring centre

Inter-state comparisons 10 | Active shooter guidelines for places of mass gatherings 14 | Study Finds US Security

ASIAL Strategic Partners:

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16 | Security 2013 18 | Bob Bruce awarded ASIAL Life Membership 26 | Q & A with Honeywell

certification listing 38 | Hot Products 41 | ASIAL new member listing

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PRESIDENT’S MESSAGE

Opportunities for the Industry to learn and network

T

THE MAGAZINE FOR SECURITY PROFESSIONALS Editorial and Advertising Security Insider is published by The Australian Security Industry Association Limited

he past couple of months have been busy for the Association with the Security 2013 Exhibition and Conference, the annual Gala Dinner and

PO Box 1338 Crows Nest, NSW 1585 Tel: 02 8425 4300 • Fax: 02 8425 4343 Email: communications@asial.com.au

opportunities for the Industry to learn, network and relax.

Web: www.asial.com.au

After more than a decade in Sydney, the event will head south to Melbourne in

Publisher

2014.The move has been warmly welcomed by exhibitors with an impressive 80% of exhibitors already committed for next year.

The Security 2013 Conference featured a number of distinguished international experts, including Don Randall, MBE, Chief of Security at the Bank of England and one of the architects of the successful Project Griffin who

Editor Bryan de Caires | security@asial.com.au

offered insights into the way the Police and Private Security providers successfully interact

Editorial Enquiries communications@asial.com.au Advertising

in the UK. Dr Anne Speckhard, Adjunct Associate Professor of Psychiatry at

Tania Laird | advertising@asial.com.au Creative Director

Georgetown University Medical School shared her experiences from talking to terrorists, to understand what motivates someone to become a terrorist.

The week also enabled the ASIAL board, secretariat and member representatives from around the country to meet up to discuss issues and strategies impacting the Industry.The meeting included invited representatives from the NSW Police, Cameron

Martin Costanzo | martin@webfx2.com.au Graphic Design + Prepress Webfx2 Digital | design@webfx2.com.au Editorial Contributors AON, Chris Delaney, Greg Tanzer, John Fleming,

Smith, Director, Security Licensing Enforcement Directorate and Chris Beatson,

Roger Pearce and Colin Porter

Director NSW PoliceLink Command.

Print + Distribution

Commencing in June and concluding in November, the Association’s consumer

Nationwide Advertising Group

awareness campaign continues through advertising in the Qantas – The Australian

Way magazine. In mid-August the Association also participated as a major sponsor of the Security in Government conference attended by government security executives.

ASIAL’s 2013 Annual and Financial Report is now available for members to review

Published bi-monthly Estimated Readership of 10,000 Views expressed in Security Insider do not necessarily reflect the opinion of ASIAL. Advertising does not imply endorsement by ASIAL, unless

(www.asial.com.au/ar). I am pleased to advise that despite numerous challenges, the

otherwise stated with permission. All contributions

Association has enjoyed another strong year. Despite the removal of the mandatory

are welcomed, though the publisher reserves the

membership requirement in NSW, membership levels have remained stable and the

right to decline to publish or to edit for style, grammar, length and legal reasons. Press Releases

Association has returned a small surplus.The Association’s 44th Annual General

to: security@asial.com.au.

Meeting will be held at 7.45am on the 20th November at the Park Royal Hotel,

Internet

Parramatta which I encourage you to attend.

advertising were correct at the time of printing.

Finally, as a recent ASIAL Survey has shown, digital business strategies are

references

in

articles, stories

and

ASIAL does not accept responsibility for misleading views. Copyright©2013 (ASIAL) All rights reserved.

becoming an increasingly important component of our members business strategies.

Reproduction of Security Insider magazine without

ASIAL’s social media footprint is also starting to grow and evolve. Whilst for some, it

permission is strictly prohibited. Security Insider is

may mean venturing into unknown territory, I would urge you all to engage with the

a subscription based publication, rates and further details can be found at www.asial.com.au.

Association through LinkedIn and Twitter. For more information contact the ASIAL Secretariat.

[Next Issue] NOVEMBER 2013 ISSN 1442-1720

Kevin McDonald President

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INDUSTRY NeWS

DECLINE IN ROBBERY AND THEFT: INTER-STATE COMPARISONS Rates of theft and robbery in Australia have fallen dramatically since the turn of the new century, according to a new report released today by the NSW Bureau of Crime Statistics and Research.The report focuses on the period between 2001 and 2009. Changes in offence counting rules make comparisons in crime rates before and after 2009 difficult but the report notes that national theft and robbery rates continued to decline between 2009 and 2012.

Between 2001 and 2009, the national robbery rate fell by 49.1%.

NSW experienced the largest decline in robbery (down 58.9%) and Tasmania the smallest (down 29.7%).

The Northern Territory and ACT bucked the nationwide downward trend in robbery with both jurisdictions experiencing increases (Northern Territory: up 53%, ACT: up 11.3%). All Australian jurisdictions experienced falls in burglary, motor vehicle theft and ‘other theft’.

NSW had the largest fall in burglary (down 63.4%) and the ACT had the smallest fall (down 32.3%).

Victoria had the largest fall in motor vehicle theft (down 70.1%), with NSW coming in just below the national fall (down 60.3% compared with a national fall of 62.2%).The Northern Territory had the smallest fall (down 26.9%).

South Australia had the largest fall in ‘other theft’ (down 50.5%), with NSW coming in just above the national average (41.5% compared with a national fall of 39.3%).The ACT experienced the smallest fall (down 15.3%).

The director of the Bureau, Dr Don Weatherburn, attributed the decline in theft and robbery to a combination of factors, including a reduction in the number of people committing crime to fund their heroin use, a

2013 ASIAL ANNUAL & FINANCIAL REPORT The 2013 ASIAL Annual & Financial Report is now available at www.asial.com.au/ar.

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substantial increase in average weekly earnings and tougher law and order policies.

‘These are unlikely to be the only factors in play’ he said. ‘Changes in vehicle and household security and changes in police tactics may also have played a role.’

Dr Don Weatherburn will address the ASIAL Industry Breakfast Briefing in Parramatta on the 20th November.

44TH ASIAL AGM The 44th ASIAL Annual General Meeting will be held at 7.45am on Wednesday 20th November 2013 at the Park Royal Hotel in Parramatta.

Members are encouraged to attend the AGM, which will also feature a presentation by Dr Don Weatherburn, Director, NSW Bureau of Crime Statistics and Research.

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NSW FIREARMS REGISTRY AUDIT The NSW Government has announced that it will undertake an independent audit of the NSW Firearms Registry to examine whether the Registry's operations are efficient and effective and align with its legislative and regulatory responsibilities.

Announcing the audit, Minister for Police and Emergency Services Michael Gallacher said “We want to ensure the NSW Firearms Registry is meeting community expectations with specific regard to public safety, and customer service. In consultation with firearm owners and stakeholders, we've been told there is a clear need for the firearm licencing regime to be modernised and updated to include the latest technology.”

The review will examine the creation of a new 'Smartcard' Firearms Licence regime that better secures personal information and streamlines the process for acquiring firearms and ammunition.

In other changes at the Firearms Registry, Phill Houlton, Head of the

Firearms Registry has announced his retirement. Prior to taking on the role at the NSW Firearms Registry, Houlton headed up the NSW Security Industry Registry.

Licensing requirements for interstate based monitoring centres providing electronic monitoring of premises in QLD ASIAL has sought an update from the Office of FairTrading on developments regarding the issue of interstate monitoring centres providing electronic monitoring of premises in QLD. We have been advised that a policy paper has been prepared by the Office of Regulatory Policy for consideration by the Security Regulators Forum (SIRF).

Unfortunately, SIRF has not met since the issue was raised in October 2012.

However, it is anticipated that the issue will be addressed at the SIRF meeting to be held in Darwin in September.

SA INQUIRY INTO SURVEILLANCE DEVICES As part of the SA Legislative Review Committee Inquiry in to Surveillance Devices held in August, ASIAL was invited to address the Committee and respond to questions.

ASIAL MEMBER BULLETINS Members can now access a series of plain English bulletins covering a variety of issues, including the latest one on Payments to Employees undertaking training.

Other bulletins include: • Incident Registers • Unauthorised Subcontracting • Security Licence Classifications • Record Keeping • Queensland Worker’s Compensation Act Changes • Misleading Representation of Monitoring Centre Certification • AUSTRAC – Cash InTransit Compliance • Payments to Employees undertaking Training

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ACTIVE SHOOTER GUIDELINES FOR PLACES OF MASS GATHERINGS The Mass Gatherings Advisory Group on behalf of the AustraliaNew Zealand Counter-Terrorism Committee (ANZCTC) has released guidelines which aim to provide a better understanding of the threat that active shooter incidents (ie a person armed with a firearm(s) who is actively engaged in killing or attempting to cause serious harm to multiple people) pose to Places of Mass Gathering (PMG).

Places of mass gathering (PMG) can pose a broad range of security challenges for their owners and operators.They have been specifically identified - both nationally and internationally - as attractive targets for religious and political extremists, as well as disgruntled or mentally impaired individuals. Armed offender attacks have occurred and continue to occur in crowded places such as sporting, transport and entertainment venues.

The guidelines seek to illustrate the key role that private sector

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stakeholders can play in developing and implementing appropriately informed prevention, preparedness, response and recovery arrangements to reduce the risks posed by such a threat.The guide should be read in conjunction with the National Counter-Terrorism Committee’s National Guidelines for the Protection of Places of Mass Gathering from Terrorism (2011).

Among the issues addressed in the guidelines include: • Characteristics of active shooter incidents – notably the intent to kill as many people as possible within a short period of time; • Primary objectives – in most incidents, active shooters need freedom of movement and ready access to victims in order to achieve their objective; • Prevention – activities that may reduce the severity or impact of the emergency event; • Preparedness – emergency planning, resourcing capability

and preparedness, as well as contingency planning; • Response – strategies aimed at evacuating or isolating people or the offender; • Recovery – strategies to address community confidence, scene preservation/ investigation and business continuity.

A copy of the ‘Active Shooter Guidelines for Places of Mass Gatherings’ can be found on www.nationalsecurity.gov.au

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INDUSTRY NeWS

SMALL BUSINESSES SURVIVING NOT THRIVING The findings of a recent survey of family businesses conducted by RMIT University has revealed a picture of increasingly pessimistic family businesses that are surviving, but certainly not thriving. Among some of the report’s findings include that 55% of family businesses do not have a strategic plan; 62% do not have a formal board of directors; and 64% would seriously consider selling their business if approached.

To view the full report visit www.mgiaust-survey.com.

PARTY SURVIVAL APP LAUNCHED To provide parents with assistance in planning safe parties for their children, a mobile application has been released that provides a step by step guide including a party checklist, venue safety checklist together with an alcohol management plan and other features.

According to the App’s creator, Naomi Oakley (a formerVictorian Police member and owner of U-Nome Security), 'on any given Friday, Saturday or Sunday night police across Australia are called to teenage parties to deal with out of control gatecrashers who have harmed guests and or caused property

damage.Poor planning is the major reason for parties getting out of control.

The App’s features include: • Assistance in party planning and registration • Step by step guide for party planners • Party checklist • Optimised guest lists • Venue safety checklist • Demonstrated alcohol management plan • Automatic reminders and prompts • Keep track of party timeline • Instant Facebook and Twitter feeds

NATIONAL PROTECTIVE SERVICES SECURITY GUARD AWARDED ‘YOUNG LEADER OF THE YEAR 2013’ One of National Protective Services popular security guards, Arsène Bounda, has been awarded the Young Leader of the Year by the Celebration of African Australian National Awards held in Canberra on 27 July 2013.

National Protective Services is a certified and Quality Endorsed Security company. Based in South Melbourne, the company has delivered security services to a growing list of commercial, industrial and government organisations for over 25 years.

Arsène is a passionate and diligent member of the National Protective Services Team, effectively combining both work and study. He has recently passed the Victoria Police Education

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Entrance Examination and the Australian Defence Force YOU Session, which has enabled him to join the Officer's Training School at the RAAF’s Victorian base in East Sale.

• Fast Instant Messaging between guests • Rate your guests • Quick dial to 000, taxis and friends • Administrator and guest modes The Party Survival App aims to provide parents with a level of comfort that contributes to a safe partying environment for their children and their guests. It is hoped that App will contribute towards a reduction in the level of party related trauma and hospitalisations.

The Party Survival App is available through the Apple Store.

FWO ATTACKS SECURITY COMPANY FOR UNDERPAYMENTS: IGNORANCE IS NO EXCUSE” In a recent judgement handed down in the Federal Court, a security company was fined $66,000 for underpaying around 20 employees.

The Fair Work Ombudsman claimed that the company did not make sufficient effort to ensure compliance with award wage rates.

ASIAL members are reminded that they can access accurate professional Industrial Relations advice, assistance and wage information by calling 02 8425 4300, going to the Member Area of the website or sending an email to ir@asial.com.au.

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INDUSTRY NeWS

STUDY FINDS US SECURITY INDUSTRY TO BE $350 BILLION MARKET ASIS International (ASIS) and the Institute of Finance and Management (IOFM) have jointly announced the release of “The United States Security Industry: Size and Scope, Insights, Trends, and Data,” an extensive benchmark study of the private security industry’s expansion over the past decade and projected future growth.

Over 400 security industry executives participated in the United States Security Industry Survey, conducted in late 2012. A companion survey of security manufacturers and vendors, security services providers, dealers, distributors, installers and integrators was also conducted in order to enhance market projections. Information collected was analysed, aggregated and combined with additional data from related national studies conducted by

ASIS and IOFM, as well as publicly available information from U.S. government data and market research of homeland security spending.

Key highlights of the report include: • $350 billion market breaks out to $282 billion in private sector spending and $69 billion in federal government spending on homeland security • Operational (non-IT) private security spending is estimated to be $202 billion with expected growth of 5.5% in 2013; IT-related private security market is estimated at $80 billion with growth of 9% projected for 2013 • Number of full-time security workers is estimated to be between 1.9 and 2.1 million • 42% of respondents indicated spending on training would increase

in 2013, with 12% anticipating a rise of 10% or more • Private detective/investigator is one of the fastest growing occupations, with anticipated growth of 21% projected through 2020; several IT positions are anticipated to grow 22% through 2020 The report is available for purchase in the ASIS Store online at www.asisonline.org/bookstore.

ADVERTORIAL

GOING MOBILE TO MINIMISE DOWNTIME AND BOOST CASH FLOW One of the main challenges facing a service business is maintaining a reliable cash flow.

It’s obviously necessary to bill for all parts and labour on the job, but don’t underestimate the importance of maximising your employees’ billable hours.

If your technicians write their job reports on paper forms and then make a special trip a couple of times per week to drop them into the office, how much might that cost your business?

The problem goes deeper than you might first think.

1. Delayed cash flow: the sooner you create an invoice and send it to the customer, the sooner you can be paid, which can have a noticeable impact on your cash-on-hand.The best possible scenario is to bill on the same day, at the completion of the job.

2. Greater vehicle expenses: working on an estimate of one dollar per kilometre to cover wear and tear, an extra 20 km trip twice a week to drop off paperwork will cost your business $40 per technician per week.

3. Loss of billable hours: this additional driving could take up to 90 minutes per

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week. If your employee also spends half an hour per visit catching up with office staff, this could total 21/2 hours of downtime per week per employee, during which you incur employment expenses without billing customers. If you charge $75 and employee costs are $60 per hour, this could cost your business over $330 per employee per week.

4. Duplication of effort: when using paper forms, information is manually copied at different stages of the workflow. For example, your office staff may type out the customer details on a job sheet for the field employee, who then re-writes them on another form, along with details of the work performed and parts used, which is then re-typed by office staff to prepare an invoice. If this consumes one billable hour for a field employee and two hours for office staff, this could cost over $150 per week per field employee.

5. Lost, incomplete or incorrect paperwork: A job sheet misplaced or accidently thrown out will delay invoicing; a lost supplier invoice will prevent you from billing for job-specific purchases.

The administrative staff time invested in

resolving these problems, or chasing up missing or erroneous information, could cost $50 per field employee per week; not resolving these issues could cost far more.

In this example, the total cost to your business is $570 per week for each employee in the field. Depending on your workflows, this figure could be greater or smaller, but it’s still a significant hit to your bottom line.

At $39 per licence per month, the simPRO Connect mobile app can greatly reduce all these inefficiencies. Paired with simPRO Enterprise in the office, you have a complete job management system, from quotes to invoicing, with scheduling and stock management. No more manual duplication of information, no more stopping into the office to drop off incomplete forms—just unparalleled visibility to boost your employee productivity—and your bottom line.

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INDUSTRY NeWS

SAFER IN SYDNEY’S WEST Against the back drop of alcohol fuelled violence in the Sydney CBD and Kings Cross area, Rosehill Gardens Racecourse stands out as a benchmark venue for compliance and harm minimisation.This is exemplified by the result of the 2013 Sydney Carnival, where the Racecourse hosted over 40,000 patrons and saw just one individual charged for assault.

Previously, the venue has had less enviable results. It has been overrepresented in the number of reported assaults and in 2009 had restrictions temporarily placed upon its liquor license as a direct result. Effective collaboration between the NSW Police – Rosehill Local Area Command (LAC), Australian Concert & Entertainment Security (ACES) and the Australian Turf Club (ATC) has significantly reduced onsite assaults and driven compliance with the Liquor Act NSW and other regulatory bodies.

Since 2010, Rosehill Gardens has been classified as a Category 3 Venue (assault rating), resulting in no additional conditions being placed on the venue’s liquor license, no ‘strikes’ or imposed restrictions. A variety of initiatives, from the use of social media to the introduction of security on horseback, have assisted to achieve this result, including: • Staff training: A comprehensive training package has been developed to ensure all staff are

aware of and able to comply with the ATC’s RSA policies, and to refresh knowledge and competence in relation to the Liquor Act.The ATC also recognises the need to build RSA principles into management practices and daily operations. By undertaking this training, staff and management are consistent in the operation of ATC premises and the message the Club is delivering to patrons and the community.

• Self-imposed alcoholic beverage sale restrictions: The ATC restricts alcoholic beverage purchases to four alcoholic drinks per transaction on race days and two after 4pm.This initiative is designed to combat drink stacking and curb rapid alcohol consumption.

• Patron awareness / education: In addition to mandatory signage the ATC has erected customised signage at all pedestrian entrances and exits. Digital messages are also displayed at points of sale and on the ‘big screens’. The introduction of a policy that excludes entry to any patron that is observed to be consuming or in the possession of alcohol on approach to the venue.

• Live CCTV monitoring of patron behavior & crowd movement: A digital surveillance system has been installed to maintain the integrity of the venue and to monitor all public entertainment areas.Trained operators are employed during race days and major events to monitor cameras located in bars and lawn areas.

• RSA Monitors: Responsible Service of Alcohol Monitors are employed by the ATC and deployed for race days and major events.This role provides customer service, age verification, and sobriety assessment and is an effective conduit between patrons, bar staff and security.

• Mounted Security: The ATC Mounted Security section is deployed for race days and major events, and actively participates in incident management. ACES and the ATC have conducted combined training with ground and mounted security to ensure effective operational utilisation.

• Project Eyewatch: The ATC has collaborated with the NSW Police Project ‘Eyewatch’, establishing the ‘Rosehill Racecourse Major Event Day Group’. This social media platform allows for real-time communication and information sharing between members of a closed group within the local precinct.

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INDUSTRY NeWS

Security 2013 Exhibition celebrates record visitor numbers and announces move to Melbourne Australasia’s largest annual security industry event, Security 2013 Exhibition & Conference has reaffirmed its position as the premier industry event for security professionals in Australasia, announcing a record number of key industry decision makers and buyers in attendance and an increase of almost 20% in visitor numbers compared to 2012.The success of this year’s exhibition has been further endorsed by the industry with over 80% of exhibitors already committed to exhibit at Security 2014, which will be held in Melbourne from June 4-6 for the first time in 14 years.

Security 2013 exhibitorTroy Donnelly, General Manager at Ezi Security Systems commented,“Security Exhibition is one of the best platforms in Australia to display our extensive product portfolio.The quality of professionals that visit our stand each year is second to none where we get the opportunity to explain the benefits of our products, and discuss more broadly some of the current trends impacting the security sector, not only with our current clients but also with prospects as well.”

Kylie McRorie, Exhibition Manager, Security 2013 Exhibition said,“Security 2013 was an outstanding success.The commitment, enthusiasm and dedication in evidence from exhibitors and visitors was overwhelming and their feedback and ongoing support has been both encouraging towards the move to Melbourne, and very positive

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towards the improvements we have made to the event this year. We are proud to host the annual Security Exhibition and to be able to work with the industry to showcase the latest security innovations, trends and insights and we look forward to an even bigger and better year in 2014 when we come to Melbourne”.

Some of the highlights from this year’s show included:

CONFERENCE AND SEMINAR PROGRAMS The Security Conference organised by ASIAL saw global experts present on a range of issues.These included Don Randall, Head of Security at the Bank of England, who delivered the keynote

session on how to create safer communities through engaging with public and private security partnerships.

Bruce Blythe, Chair of CMI addressed issues relating to crisis management and reputation management.

A panel of industry experts also presented a series of lively, practical sessions in the Security Solutions SeminarTheatre sharing insights into the latest trends and issues impacting Australian businesses, from aviation security and hostile vehicle mitigation to managing risk in major events.

Internationally recognised expert on terrorism, Dr. Anne Speckhard, made a special guest appearance at Security 2013, presenting the keynote session on the motives and factors that drives

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INDUSTRY NeWS

someone to become a terrorist. NBN Co’s Strategic Consulting Architect, Anthony Camilleri, provided an update on the rollout of the NBN as well as its Security Industry Engagement Activities.

PRODUCT INNOVATION AND NEW PRODUCT OF THE YEAR AWARD This year’s exhibition showcased the latest security solutions from over 150 exhibitors both locally and from around the world including the likes of Bosch, EZI Security, MOBOTIX AG and Interlogix. CCTV cameras, biometric identification systems, bollards, electronic locks, thermal imaging cameras and access control solutions were among the hundreds of products on display.There was also a record number of new products appearing for the first time on Australian shores at Security 2013, including FLIR Systems’ FC-Series S: Thermal Imaging Camera and HID’s iCLASS SEOS Credential.

Australian owned and operated, Ezi Security Systems claimed the prestigious Best New Product of the Year Award for its Ezi Elkosta M50 Bollard.The unique movable bollard is developed to withstand the impact of a 6.8 tonne vehicle travelling at 80 km/h and features a world first integrated hydraulic drive unit complete with EFO-facility. SALTO’s cloud-based access control solution Clay was recognised as first runner up, while Cognitec’s facial recognition

Don Randall addresses the Conference

technology FaceVACS-VideoScan was named second runner-up.

SECURITY 2014 EXHIBITION & CONFERENCE Following the success of 2013, the Security Exhibition & Conference will return to Melbourne in 2014.The move will offer new business and networking opportunities, and will continue to be the region’s essential meeting place for the industry.

Natalie Moussa, Senior Brand Manager at ID Warehouse said,“This is our ninth consecutive year exhibiting at

the Security Exhibition. We see the event as an integral part of our marketing calendar each year, it’s always a great opportunity to showcase our latest products and we’re very pleased with the quality of visitors and new enquiries we receive each year. As an exhibitor, it delivers great value for us each year and we are very much looking forward to Security 2014 in Melbourne”.

Geoff Plummer, Business Development Manager at Smartlock Digital and Davcor Group commented, “We are looking forward to moving back to Melbourne for Security 2014.This change means we are opening ourselves up to a whole new group of clients who we previously may not have been able to reach, and significantly increases our return on investment.”

For more information on Security 2014 Exhibition, visit www.securityexpo.com.au or www.breakingintomelbourne.com.au

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INDUSTRY NeWS

Bob Bruce awarded ASIAL Life Membership Former longstanding ASIAL Director and widely respected industry figure Bob Bruce has been recognized for his contribution to the industry.The ASIAL Board has made Bob a Life member for his outstanding contribution to the growth and development of the Association.

Bob was a long standing Director of ASIAL until he stood down in 2012 following his retirement. During this time he made a lasting contribution to the Association through his contribution to the annual exhibition and conference during its formative years and through his leadership of the Cash in Transit Special Interest Group.

Bob’s integrity, honesty and

candidness made him an invaluable member of the ASIAL Board whose input was highly valued.

Much of Bob’s work was conducted behind the scenes without any fuss or fanfare. He certainly didn’t seek plaudits nor acclamation for the work he did.

The high regard and respect that Bob is held is reflected in the following comments from Past ASIAL Presidents:

“Bob has been a tower of strength for his company, for ASIAL, and for this Industry.”

Larry Circosta (1992-2001)

“I will never forget how Bob welcomed and supported my passage onto the board. Given his status and reputation, it was greatly appreciated and never forgotten!”

Antony Elliott (2002-2006) “Bob is an Old School Gentleman and a man of his absolute word.

Some people are referred to as “Glass half full” people others as “Glass half empty”. What I like about Bob is that he keeps his thoughts close but wonders what idiot actually designed the glass.” Ged Byrnes (2006-2012)

From left to right, Antony Elliott, Bob Bruce and Tom Roche, pictured during an ASIAL Board meeting held at Ballymore in 2008.

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ASIC

Providing a fair and transparent environment for businesses and consumers

By Greg Tanzer*

The Australian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator.

A KEYFUNCTION OF ASIC is to maintain, facilitate and improve the Australian financial system by ensuring that businesses operate in a fair and transparent environment. ASIC does this to protect the integrity of the financial system and provide businesses and consumers with confidence and certainty.

Small businesses make up almost 96 per cent of Australian businesses and have a significant financial impact on the Australian economy, so it’s vital that they are adequately regulated.

ASIC is determined to help small businesses operate in a fair and transparent environment by making sure that they know and understand their legal obligations and by taking regulatory action against those that intentionally cause harm to other small businesses and consumers. In order to do this, we’re introducing a number of initiatives.

ASIC is enhancing communication with small businesses about its role and their compliance obligations. We’re striving to reach as many small businesses as possible, using a variety of communications channels and working with other small business stakeholders, including other regulatory agencies, business associations and business advisers.

ASIC is also developing new tools and resources that will make it easier for small businesses to know and understand their legal obligations and comply with the law. We’ve released a new booklet,Your obligations as a small businesses operator' that covers a number of topics, including: • ASIC’s regulatory role and functions; • types of business structures ASIC regulates; • individuals that may be disqualified from managing companies; • responsibilities of company officers;

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• compliance obligations of company officers; and • where to find related information on the ASIC website.

The booklet can be downloaded from the ASIC website: www.asic.gov.au ASIC’s website will also shortly have a small business webpage which will provide information that is relevant to small businesses and easy to understand.

Another way that ASIC is helping small business is through effective regulation. We’re focusing our attention on those that operate small businesses and intentionally set out to cause harm to other legitimate small business operators and consumers and whose actions undermine the wellbeing of the Australian economy.

ASIC is particularly concerned with the high levels of fraudulent phoenix activity in the construction, labour hire, transport, security and cleaning industries.

Phoenix activity involves the winding up of a company and the subsequent continuation of that business in a new company, often with a similar company name, structure and staff.

The phoenix company phenomenon is a side-effect of the use of the corporate form and of limited liability; concepts that are fundamental to the global commercial system. It is essential to the concept of limited liability that, when a company fails, the directors and the shareholders, as a general rule, are not held personally responsible for the debts of the company.

Phoenix activity is not, therefore, inherently unlawful. Genuine corporate failure where businesses have been responsibly managed and subsequently continue after liquidation using another corporate entity is a legitimate use of the corporate form.

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ASIC

“ASIC IS PARTICULARLY CONCERNED WITH THE HIGH LEVELS OF FRAUDULENT PHOENIX ACTIVITY IN THE CONSTRUCTION, LABOUR HIRE,TRANSPORT, SECURITY AND CLEANING INDUSTRIES.”

Greg Tanzer*

Fraudulent phoenix activity, on the other hand, generally involves abuse of the corporate form by current or previous directors of the company to intentionally deny creditors their entitlements.

The impact of fraudulent phoenix activity on Australian businesses and the broader community was highlighted in a recent PriceWaterhouseCoopers report commissioned by the Fair Work Ombudsman.Titled, Phoenix Activity; Sizing the Problem and Matching Solutions, this report estimates that the total annual detrimental cost of fraudulent phoenix activity on the Australian economy is approximately $3.19 billion. Of that amount, the report estimates that the annual cost of phoenixing is: • Up to $655 million for employees, in the form of unpaid wages and other entitlements; • Up to $1.93 billion for businesses, as a result of phoenix companies not paying debts for goods and services that have been paid for but not provided; and • Up to $610 million for government revenue, mainly as a result of unpaid tax – but also due to payments made to employees under the Fair Entitlement Guarantee (FEG).

While there are many characteristics of illegal phoenix activity, the most common are: • The company fails and is unable to pay its debts; • Directors act in a manner which intentionally denies unsecured creditors equal access to the entity's assets in order to meet unpaid debts; and • Soon after the failure of the initial company (usually within 12 months), a new company commences using some or all of the assets of the former business, and is controlled by parties related to either the management or directors of the previous entity.

ASIC has a number of initiatives to combat fraudulent phoenix activity.

Funding Liquidators: The Assetless Administration Fund (AA Fund) was established by the Australian Government and is administered by ASIC. It is used to finance preliminary investigations by liquidators into the cause of the failure of companies that have few or no assets. Liquidators prepare and lodge reports with ASIC who, in turn, may take enforcement action.

Disqualifying directors: ASIC can disqualify directors from managing corporations where they are involved in two or more companies that have been placed into liquidation within the past seven years. ASIC relies on statutory reports provided by liquidators to support its decisions to disqualify directors from managing corporations. A significant number of statutory reports allege illegal phoenix activity. ASIC Delegates who review the matters have the power to disqualify directors for up to five years.

ASIC disqualified 72 directors from managing companies in the 2012/13 financial year.

Liquidators Assistance Program: ASIC regularly helps liquidators to secure the books and information of companies in external administration by ensuring that directors comply with their legal obligations. Directors who fail to meet their obligations may be the subject of ASIC initiated court action. In the 2011/2012 financial year, ASIC prosecuted 402 company officers for a total of 817 offences with fines and costs totalling more than $1 million ordered.

Identifying and deterring phoenix activity: ASIC has undertaken a new initiative to deter fraudulent phoenix activity by focusing on directors who have a failed company in the construction, labour hire, transport, security and cleaning industries where there have been allegations of fraudulent phoenix behaviour. We have identified individuals with current companies and are using intelligence from several sources to identify which of those companies are in financial distress and tracking towards external administration.

ASIC will use this information to deter those directors from engaging in fraudulent phoenix behaviour. We will also continue to work with other key Government agencies and industry representatives to raise awareness about fraudulent phoenix activity that is not only illegal, but has far reaching and unfair consequences for the Australian community.

Greg Tanzer is a Commissioner with the Australian Securities and Investments Commission.

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LOCAL GOVERNMENT PROCUREMENT INITIATIVE

Delivering the Message on Sham Subcontracting

By Chris Delaney

As many will be aware, ASIAL has for some time raised concerns about sham subcontracting in the Security Industry. In particular, how the practice damages the reputation of our industry by encouraging customers to seek low cost security providers.

There is a genuine argument for encouraging and supporting those who wish to start their own business, large or small, and there is a compelling argument for genuine sub contracting as a necessary part of the private security contracting industry. However, there is no place in our industry for illegal arrangements that destroy the opportunities for legitimate security businesses to compete for contracts or for individuals to be compensated for their labour at lower than minimum legislative and award wages and conditions.

In this article I will discuss some of the consequences of sham subcontracting, how it is “inadvertently” supported by some Government agencies, and what ASIAL is doing to deter the practice, while still supporting the rights of individuals to operate a genuine small business.

What is “sham subcontracting”?

Sham contracting is when an employer attempts to conceal an employment relationship by calling it an independent contracting arrangement.This is usually to avoid paying legal minimum rates of pay, workers compensation, insurances,

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tax, and entitlements, such as annual leave and sick leave. It gives the Principal Contractor a distinct advantage over competitors by reducing their costs by anything up to 25%+. Arrangements such as these are not genuine and may be regarded as sham contracting.

Sham contracting arrangements are unlawful under the Fair Work Act 2009 (FW Act). Under the FW Act an employer cannot: • Misrepresent an employment relationship, or a proposed employment relationship, to be an independent contracting arrangement.

• Dismiss, or threaten to dismiss, an employee in order to re-engage that employee as an independent contractor to perform substantially the same work.

• Knowingly make a false statement with the intention of persuading a person to enter into an independent contracting arrangement.

When it comes to Local Government Tenders, the contract almost always goes to the proposal with the lowest price. And the lowest price very often

comes from security businesses that use subcontracting arrangements and not direct labour. While some such arrangements may be bona fide those that are not result in: • Individuals (ABN holders) underpaid and exploited.

• Principal Contractors gaining an unfair business advantage over competitors.

• The so called “market rates” being unsustainably low.

• End users being exposed to “shonky” business practices (including uninsured and unprofessional work), and • End users exposed to accessorial liability under s550 of the Fair Work Act 2009.

ASIAL and the Fair Work Ombudsman (FWO) have been working on a Government Procurement Initiative (initially focusing on local government) which aims to educate Local Government on the pitfalls of using price as the primary determinant when allocating security contracts.To that end the FWO have recently written to Local Government Associations throughout Australia and met with Local

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LOCAL GOVERNMENT PROCUREMENT INITIATIVE

Government Associations in New South Wales, Western Australia and South Australia with the following message: “ASIAL has recently raised concerns with the Fair Work Ombudsman concerning the wages and conditions paid by some security businesses contracted by local councils. These concerns appear to be valid, based on recent compliance activities undertaken by the Fair Work Ombudsman. In particular, there is evidence that a focus on obtaining services for the lowest price has proven to support a range of unlawful behaviours, including underpayment of wages and illegitimate subcontracting arrangements. In some instances security firms have been found to be significantly undercutting minimum award conditions. The consequences of this are far-reaching and widespread, including for legitimate operators in the contract security industry.

The alleged contraventions of the Act and the relevant modern award (the Security Services Industry 2010) reflect primarily on elements of the contract security industry, however there can also be ramifications for those who are

involved in the procurement of these services on behalf of local corporations.

For example, individuals involved in the procurement of services at prices that can only be supported by the payment of below-award wages could be found to be personally liable for contraventions of the Act and the modern award.

The Fair Work Ombudsman is keen to work with organisations such as yours primarily to get a better understanding of procurement practices within local government and also to establish the best way to work with local councils to ensure that they understand their obligations in ensuring that bona fide contracting arrangements are established that help limit or eliminate the risks for local government, including vicarious liability.”

The Local Government Initiative will continue with the next stage to include the development of Model Tender Clauses and a Model Workplace Management Plan to ensure more objective criteria with which tenderers must comply. We will also refine the

communication processes to ensure that the key messages get through to government decision makers.

A recent ASIAL survey of members who participated in government tenders has provided insights into the difficulties they face when competing for government security contracts. For example: • The overwhelming reasons for not tendering for government contracts are based on the inability to compete on price and/or make a sustainable profit from the work.

• Over 80% reported price as the most important factor in winning a tender.

Some of the comments provided included: “We lost contracts due to local security companies requesting staff to get ABNs so they can underpay and not comply with the Award, pay super and Workcover like the rest of us do”.

“There is a lot of pressure to provide a price based tender. We get the impression that we have missed out on numerous tenders to companies that could not be complying with legislated requirements”.

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If you have not already completed the survey, make sure you have your say by completing the Tendering for Government Work Survey available in the member’s area of the ASIAL website. Alternatively, you can email security@asial.com.au and request a link to the online survey. All responses are kept anonymous.

How Governments inadvertently promote “Sham Subcontracting” Legislation in Queensland and Victoria permits individuals who hold a security licence to operate a security firm/business as a sole trader without the need to hold a security firm or business licence.This situation has given rise to a number of unintended consequences.

It encourages potentially unlawful practices whereby security businesses (Principal Contractors) engage individual ABN holders to avoid costs of employing direct labour, including minimum award wages and conditions, workers compensation, superannuation, leave etc in order to gain an advantage over competitors employing direct labour.

Some in business may believe that all such arrangements are lawful.The fact is that, even though a person has agreed to be an independent contractor, that person may actually be an employee because the relationship is an employment relationship. All too often the parties to these arrangements believe that it is a genuine subcontracting arrangement only to find it is not.

ASIAL will be recommending legislative amendments to provide the opportunity for security firms or businesses to operate as legitimate sole traders while protecting the industry from the deleterious effects of sham subcontracting.

The High Cost of getting it Wrong Earlier this year a company and its director were fined more than $286,000

for breaches of the Fair Work Act, stemming from the incorrect classification and payment of its employees as independent contractors.

The fines are a record for FWO proceedings in NSW and is one of the largest ever obtained by FWO nationally.

The company admitted to 17 contraventions of the Fair Work Act relating to sham contracting, breaches of a modern award and record keeping/pay slip requirements. Its director also admitted involvement in the 17 contraventions under the "involvement in a contravention" personal liability provisions of the Fair Work Act (he was personally fined approximately $48,000).

The case serves as an important reminder to businesses to correctly engage and remunerate employees and the perils associated with sham contracting arrangements.

There is no single test to determine whether a relationship is truly one of employment or that of an independent contractor.The courts look at a range of factors to determine the issue and while what the parties call themselves and the contractual arrangements entered into are relevant, they are not determinative.

As the Court has previously held: "Parties cannot create something which has every feature of a rooster, but call it a duck and insist that everybody else recognise it as a duck".

The above prosecution (and a number of recent Federal Circuit Court decisions in similar prosecutions) highlight that: • it may not always be appropriate to engage a person or company to provide services under a contracting arrangement; • trying to squeeze a work arrangement into a 'contracting box', when the circumstances call for an employment arrangement and compliance with applicable industrial regulation, can have expensive consequences; and • using contracting to push

responsibility for compliance with applicable industrial regulation - and liability for non-compliance - down the supply chain may not work.

The former Fair Work Ombudsman Nick Wilson, warned last year that: "Turning a corporately-sanctioned 'blind-eye' to outsourced work that is performed by another enterprise using contractors on below-award rates of pay may expose enterprises up the procurement chain to liability. All parties should undertake due diligence when outsourcing work to contracted workers, particularly to lowest-cost providers, to ensure lower costs are attributable to efficiencies in the business and not due to the potential exploitation of workers on below award rates."

So, what now?

The very nature of the security industry means that there is a commercial imperative for security businesses to subcontract work to meet short term spikes in client demand. Having said that however, the practice of sham subcontracting has a negative effect on the entire industry and its customers.

Part of the solution is for Government agencies to show leadership when allocating security contracts.They can do this by placing greater emphasis on quality service provision rather than the lowest possible price, which inevitably encourages lower quality service from unscrupulous providers.

Education of clients is the key, whether government or corporate.

In this regard ASIAL is working with FWO on the Local Government Procurement Initiative, which in time will extend to include other levels of government. We will work with all Government agencies to develop fair and transparent guidelines that will produce certainty and confidence throughout the supply chain, resulting in a more professional and sustainable private security industry.

Note: The information provided above is for convenient reference only. ASIAL and Chris Delaney & Associates Pty Ltd provide this information on the basis that it is not to be relied upon in any or all cases, as the circumstances in each matter are specific. Accordingly, we provide this information for general reference only, but we advise you take no action without prior reference to an Employee Relations professional. ASIAL members can contact Chris Delaney by emailing ir@asial.com.au

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NATIONAL BROADBAND NETWORK

NBN UPDATE

By John Fleming* ASIAL has brought to the attention of Telstra issues concerning the migration of telecommunication services onto the NBN. As the NBN has been rolled out across Australia, Retail Service Providers (RSPs) have inadvertently disconnected some customer’s security systems.This happens when the existing PSTN service is migrated to a digital service using the UNI-D port.Typically the home owner has little or no knowledge of the differences in the technology and what is been offered by the RSP, their prime concern is that they have a telephone service and potentially a broadband connection.

Usually it is not until the monitoring centre acknowledges a loss of communication from the customer’s site and a service technician is called that the problem comes to light.

ASIAL has communicated industry concerns to Telstra who have been proactive in acknowledging the issue and responding to remedy the situation. It has given Telstra the opportunity to look at their processes and how that information can be used to ensure migrating legacy systems onto the NBN meets the needs of customers.

The Government mandated roll-out of the NBN will create significant change in telecommunications in Australia.Telstra is committed to ensuring customers are able to achieve a smooth changeover of their copper based services to the NBN. This includes steps that can be taken to assist customers who have contracted with security and medical alarm

30 //SECURITY INSIDER SEPT 2013

companies for the installation and maintenance of those services using in premises telecommunications cabling.

Alarm systems are typically not RSP products. RSPs generally do not have a detailed technical knowledge on how alarm systems operate. However,Telstra is working to make sure their staff know what to do when they become aware that

a customer does have such over the top services.

It is not compulsory for Retail Service Providers (RSP) to offer UNI-V based voice products or to have the skills and appropriate licences to reconnect Security Alarm Systems when a customer changes over to the NBN. Alarm customers will be advised to test their

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NATIONAL BROADBAND NETWORK

system and communicate with their alarm service provider.The NBN Co supplied network termination device port configurations (UNI-V or UNI-D) allow RSPs to choose to deliver a range of different types of telecommunication services to their customers. At the present time the UNI-V port is the only one that has a back up battery, NBN Co are looking to extend this battery offering to the UNI-D port by the end of this year.

VoIP networks offer a range of codecs ranging from G.711 to a number of compressed codecs to save bandwidth.The only supported codec on the NBN UNI-V port is G.711; this is designed to provide a call quality equivalent to the PSTN. The NBN Co has advised ASIAL that it is establishing a test bench facility in Melbourne where security providers and device manufacturers can test their devices against a wide range of NBN services from a range of NBN RSPs.The NBN Plug Bench test facility will enable alarm service providers to perform a basic compatibility test against different Retail Service Providers.This is scheduled to become operational in September 2013;

interested companies are invited to submit an EOI to participate in testing their products.

Key challenges for the monitored alarm industry will be when an RSP has transitioned a customer onto the NBN. • If using the UNI-V port has the RSP preserved the mode 3 connection during the cutover?

• If not, what remedial wiring will the alarm company have to do and at what cost to the customer • If using the UNI-D port what hardwired IP product and or wireless product will you use and what consideration has been given to using a backup power supply. Again these are additional costs for your customer.

ASIAL‘s advice to the electronic security industry remains the same as before, be vigilant and communicate with your customers.The reality is that some customers may change their phone provider without realizing the effect on their alarm system. Raising awareness among customers of the potential failure that may occur if they choose an alternative network service is paramount to ensuring the alarm system continues to

function correctly.

The Association has prepared a one page electronic information sheet that members can send out to their clients with a monitored security system, which explains in plain English what they should do when the NBN rollout reaches their home.The information sheet is available to members through the members area of the ASIAL web or by emailing security@asial.com.au and includes the ability to include your company’s contact details.

John Fleming is the General Manager, ASIAL. He can be contacted at gm@asial.com.au.

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PSIM

THE GEOMETRY OF PSIM

By Roger Pearce*

Yes, just when you thought there were no new concepts in security they have come up with a new one. Well not so much new as an enhanced idea of what has been tried many times over the years but now looks like it has finally come of age.

Physical Security Information

Both access control systems (ACS)

on response times and staff

Management (PSIM).The access

and video management systems (VMS)

performance, the ability to cross-

control industry is pretty comfortable

do part of what a PSIM does but not

reference or link records, search on any

with High Level Interfaces (HLIs) these

everything.To be completely effective

information in the security database,

days. In fact no respectable access

and improve efficiency a PSIM must not

and present your findings in a variety of

control system would not have a suite of

only integrate the physical security but

ways. Automatic dispatching of guards

HLIs available to interface to other

also link it to the manpower

to respond to an event is a great time

systems.The most important and the

management software.

most usual we have been dealing with

This means combining several

for over 20 years now are interfaces to

technologies including the physical such

Lifts, CCTV, Building Management

as the ACS, VMS, BMS, Fire, Radio,

Systems (BMS) and more recently

Intercom & phones. But importantly

intercoms. In a commercial high rise

connecting these to a system that logs

building these interfaces will probably

all physical events and can pull related

suffice where an integrated system is

events together and present them as

required. PSIM will be of more use in

one scenario to the operator by linking

larger buildings where there is in-house

an alarm, a relevant camera view or

security monitoring and guards.

views as well as bringing up a report

However when you move to larger

page so that the operator can add his

more diverse security installations with

comments and response. It also must

on-site monitoring and guards like a

automatically pull up the recommended

port authority, prison, university campus,

Standard Operating Procedure (SOP)

airport or mine site the security control

and present it to the operator. The

room is likely to have a much larger

system must then go on to allow easy

array of systems to monitor and control.

and rapid reporting and analysis of

From one central point the security

historical events to help identify patterns

department will be monitoring all the

and trends that have occurred over time.

usual security sub systems as well as

Management of operators and mobile

taking phone calls, answering intercoms

guards must also be handled within the

and communicating with mobile patrols

system.This involves creating diaries

and staff over the two way radios.

and programs of future activities, reports

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Before

After

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PSIM

saving feature especially in an

This is where PSIM comes in.The aim

campus and badges his card on the

emergency when the control room is

is to put in an “Overlay” Graphical User

weekend, the air conditioning and lights

under pressure during a crisis.

Interface (GUI) with all the sub systems

in his office turn on the lift is called to

PSIM should also enable requests for

interfaced to it so that there is only one

the ground floor, and the relevant

service to be thoroughly documented—

GUI workstation for the operator to use.

cameras come up on the monitors in

from initiation, to deployment, to

This is the main differentiator between

the Security Control Room to check he

response. Routine activities should be

an integrated access control system or

gets to his office safely.

escalated into incidents for further

video management system and a PSIM.

follow-up. Operators should be able to

A PSIM does not just integrate it

call point, the nearest camera comes

search text fields across the whole

provides intelligence as well.

up on the video monitor in the security

database and consolidate related

This has many advantages over a

A student calls from an Emergency

office, if after dark additional lighting

incident and investigation data into case

control room that has grown just like

comes on, and the message is relayed

records for comprehensive tracking,

topsy with operators having to jump

to the nearest security patrol as a text

analysis and reporting.This will bring

from one keyboard to another and look

or even a video. At the same time a

clarity to complex investigations and

for information on various monitor

door or gate can be locked or unlocked

scenarios by mapping relationships

screens.

depending on the time of day or other

between seemingly disparate data.

Some of the advantages are: • All the sub system present on the same maps and screens in the same

circumstance.

Existing Security Control Rooms have probably acquired a range of sub systems over time to cope with the

format

A high temperature alarm is triggered in a computer room. An alarm is reported to all appropriate personnel via

demands of monitoring a large site but

• Consistent GUI operation for Security

mobile phone or hand held device as

because they were installed at different

Control room operators no matter

well as the Security Control room. On

times by different integrators they

which sub system is being viewed.

call IT personnel go directly to the

probably have little or no connection with each other.The security operators have to do the co-ordinating

• Operators only need one keyboard , mouse and headset • Every field device be it a reed switch,

location and take action.

There is a fire alarm from a particular building the alarm reports to the

themselves. So it is not unusual to see a

movement detector, card reader,

brigade as well as security. Air

control room set up for peak loads

camera, thermostat, temperature

conditioning is shut down, an SMS text

where there are staff monitoring

alarm, fire alarm, Emergency Call

message is sent to the radio(s) of the

cameras, responding to alarms, writing

Point, lift phone, two way radio,

guard(s) nearest that building and a

reports, taking phone calls, despatching

iPhone, iPad, iPod all able to be

page is broadcast to all occupants to

guards and answering intercoms all at

linked or interrelated by

evacuate.

once. At times like this the operators

programming.

have to make snap decisions and need

The interrelationships between all

integrate all of the technologies and

four pairs of hands to work all the

devices and events are programmed

security operations.To know what is

systems.This is then followed by a lull

into the (PSIM) Overlay by way of

required the designer of a PSIM needs

when things go quiet and little is

scenarios or related Inputs and outputs.

to immerse himself in the procedures

happening, allowing time to catch up.

An input can be from a device or an

carried out day to day in the Security

These peaks and troughs can be

event and can trigger an output or

Control Room so that every facet of the

smoothed out by a PSIM as it will

create an event.The aim is to make the

operation is incorporated in the design.

automate a lot of actions even if they

whole system event driven thereby

come in rapid fire as they will in an

minimizing the Control Room operator’s

& Sullivan report on the topic “The

emergency. In an emergency dozens

involvement in routine tasks leaving him

worldwide physical security information

even hundreds of alarms occur over a

free to be proactive and ready to

management (PSIM) market is

short period. With a PSIM the pressure

respond to the exceptional events.

expected to grow from $80.0 million in

is taken off the operator leaving him or

Some good examples of these

To be effective PSIM should

According to a November 2010 Frost

2009 to $544.0 million in 2015, with a

her to concentrate on the overview of

scenarios that can be automated would

Compound Annual Growth Rate

what is happening and manage the

be:-

(CAGR) of 37.6%.” So watch this space.

most appropriate response.

The Vice Chancellor drives onto the

About the author *Roger Pearce is an independent security consultant with over 30 years experience in the electronic security industry. Over 15 years of which have been as an independent consultant advising clients on a range of security technology applications. He can be contacted at sbtb@people.net.au or www.sydneysecurityconsultants.com.au

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ASIAL Certified Security Monitoring Centres*

Current as at: 21 August 2013

Company (short form name)

Australian Security Industry Association Limited

State

Cert. No.

Grade

WA

379

A2

28 Feb 2014

ADT Security

NSW

404

A1

30 Jun 2014

ADT Security (Data Centre)

Allcare Monitoring Services

Expires

NSW

405

A1

30 Jun 2014

ARM Security

WA

402

A1

10 Mar 2015

ART Security

VIC

392

A1

30 Sep 2014

Calamity Monitoring

NSW

383

A1

20 Mar 2014

Central Monitoring Services

NSW

380

B1

21 Mar 2014

Commonwealth Bank of Australia

NSW

389

A1

24 Sep 2014

VIC

391

C2

18 Mar 2014

NSW

398

A1

25 Nov 2014

Energize Australia Glad Security Golden Electronics

TAS

395

A1

17 Oct 2014

Grade One Monitoring

NSW

378

A1

13 Feb 2014

Grid Security Services

NSW

381

A1

18 Mar 2014

ISS Security

NSW

373

B3

25 Nov 2013

Linfox Armaguard

VIC

393

A1

08 Aug 2014

Mekina Technologies

TAS

399

A1

02 Nov 2014

NSS Group

NSW

384

A1

07 May 2014

Onwatch

NSW

396

B1

31 May 2014

Paul-Tec Australia

NSW

409

A1

01 Aug 2015

Protection Pacific Security

VIC

394

C2

9 Aug 2014

RAA Security Services

SA

400

A1

12 Dec 2014

Secom Australia

NSW

374

A1

14 Dec 2013

Sectrol Security

VIC

369

B2

19 Aug 2013

Securemonitoring

VIC

370

A1

23 Nov 2013

NSW

386

A1

04 May 2014

Security Alarm Monitoring Service

SA

387

A1

18 Jun 2014

Security Control Room

VIC

411

A1

18 Aug 2015

Sesco Security

WA

407

A1

03 Jun 2015

Signature Security

WA

403

A1

30 Jun 2014

SMC Australia

QLD

372

A1

07 Dec 2013

SMC Australia

VIC

371

A1

16 Dec 2013

SNP Security (Newcastle)

NSW

410

A1

17 Aug 2015

SNP Security (Sydney)

NSW

408

A1

13 Aug 2014

WA

406

A1

12 Apr 2015

State Government Protective Security Service

QLD

388

C1

22 May 2014

Westpac Banking Corporation

NSW

382

A1

19 Mar 2014

Woolworths Limited

NSW

397

C1

04 Nov 2014

Securenet Monitoring Services

Spectus

*The above-listed ASIAL Certified monitoring centres comprise those establishments that have been inspected and graded for compliance with the applicable Australian Standard: AS 2201.2 – 2004. PLEASE NOTE: ASIAL takes no responsibility for listed companies which may change the nature of their operations subsequent to Certification.

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NEW MEMBER BENEFIT

WHEN CUSTOMERS WON’T PAY

By Colin Porter

How to avoid dealing with businesses who don’t pay, and what you can do when they refuse to.

Non-payers, defaulters, fly-by-nighters.

It’s a sad fact of business that if you deal with customers on credit terms, you’re likely to have encountered the type of customer who – when the work is done or the product delivered – refuses to pay.

Most of us have a horror story about a client who consumed time, resources and cash before dodging their debt – sometimes declaring that they couldn’t settle, other times simply going missing.

When considering this problem, it’s worth remembering why we sell on credit terms in the first place. We do so because it’s part of our service, because it distinguishes us from competitors who won’t. In other words, it’s a courtesy. It doesn’t have to be extended in every case, and it pays to remember that what we are actually doing every time we work without being paid up-front is, in effect, lending to our customers. With that in mind, here are some things you can do to deal with customers who won’t pay.

1. Avoid them This is the most effective way to deal with non-payers. Unfortunately, they don’t identify themselves up front. A common practice is to ask new customers for trade references, but this is flawed because customers are unlikely to give you the details of a company they haven’t paid.

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Instead, make sure that you investigate the credit record of the customer in question.

Check the company’s credit history with a credit reporting bureau such as CreditorWatch.The bigger the job, the more research you should do. If you do find something adverse, it’s up to you whether you’re going to deal with them on more stringent terms or not at all.

2. Have policies and procedures If you were a bank lending money, you’d put procedures in place to assess your customers and chase their debts. In business, things should be no different: • Make sure that you have written policies in place that govern when credit can be extended, on what terms, and how it will be pursued when overdue.

• Get new customers to complete an account application form that details your terms and policies.This helps to set expectations.

• Send reminders at 30 days and 45 days, or whenever is appropriate for your industry and your kind of business.

• Set a limit, such as 90 days overdue, when you will begin to take further action.

• Credit reporting bureaus often offer draft final notice letters informing

customers that their debt must be paid immediately to avoid legal action and the registering of a default.

Having procedures to follow helps to ‘train’ your clients about your practices while showing them that you take credit seriously. In addition, businesses who don’t follow up usually get paid last, so having credit measures in place will often get your business paid ahead of someone else.

3. Chase the debt The golden rule of payment collection is that the squeaky wheel gets the grease.

Make sure that your business actively pursues overdue debts.This can be by letter or telephone (try both) and – if you think it’s worth your time – you can even attempt to collect in person.

When a customer won’t pay, try to understand why. Do they have a cashflow problem, or are they close to collapse? If they claim cashflow, ask them to pay in instalments. Be sure however that any agreement struck outlines a precise payment schedule and contains penalties (such as immediate legal action and the registering of a default) for a missed payment.

A common reason customers cite for non-payment is that the products and services delivered weren’t what they

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NEW MEMBER BENEFIT

expected. While this can be a ploy, try to discuss any issues raised in good faith.

You may need to offer compensation or a discount, which – though not ideal – will at least mean that your business recovers something.

4. Consider a debt collector While debt collectors don’t do anything that you couldn’t do yourself, they are more practiced and may have more success in chasing your recalcitrant debtor.Their usual practice is to work for a percentage of the debt recovered, and using one can be a good idea if your business doesn’t have the in-house staff it needs to chase debts on its own. Keep in mind however that debt collectors don’t have additional legal powers, and if they are overzealous you may damage your relations with a customer by using them.

5. Report a default If a business refuses to pay you after 90 days, you should let other businesses know by reporting the default to credit monitoring organisations. While this might not help you to collect your particular debt, the threat of such action can often compel a customer to pay.

Also, while in the past the sharing of credit data has been the domain of large companies and financial institutions, new services aimed at SMEs are now appearing on the scene. CreditorWatch, for example, is a credit reporting bureau and online community of business owners who share information about debtors in order to be instantly alerted when the businesses around them cause payment trouble. Users of the service also place a logo on their invoices to encourage on-time payment.

6.Take legal action When all else fails, it’s time to consider court action. Unfortunately, this is never a quick or inexpensive solution. Indeed, it can take 18 months or more for the process to complete, and most of anything you recover can be chewed up by legal costs.

Most jurisdictions in Australia have a Small Claims Court orTribunal – often attached to the magistrates court – in which you can make claims. While it’s cheaper to lodge in such forums, their actions are not usually enforceable.

Local and magistrates courts will provide enforceable judgements, but their rulings

aren’t automatically enforced.You will need to request action from the sheriff’s office, which can run into difficulties trying to identify seizable assets.The upshot is that unless the debt that you’re pursing is large and you also know that the company in question has the ability to pay, legal action may be more trouble than it’s worth. In all cases, the best thing to do is consult a lawyer.

One advantage of legal proceedings is that their initiation can often bring about mediation and negotiation. If you don’t get the debt back, remember that depending on your tax situation you can usually ‘write it off’.

Changing times The situation in Australia is that payments are taking longer and longer. In part, this is a product of the GFC, when cashflows were tight. Now however, with the economy in recovery, some businesses are likely to use these lax

payment terms as a tool for building their own cash reserves – meaning that we should be more stringent and aggressive in pursing debts.

As the economy picks up, our natural inclination is also to take on as much new business as we can find. But it’s important not to do this at the expense of proper

DEALING WITH BAD DEBTORS • Perform credit checks on new customers.

• Get customers to complete credit application forms.

• Have processes for actively chasing debts and sending out reminders.

• Specify consequences for missed payments. Report defaults to registries like CreditorWatch.

• Outsource to a debt collector if you can’t chase yourself.

• Take legal action only if you’re likely to succeed. debt management and careful consideration of each customer.

Remember that you might have a great and profitable business with great products and still be undone by unpaid debts or by customers going under.

*Colin Porter is the founder and Managing Director of CreditorWatch, a registry where businesses share information about bad debtors to make better credit decisions.

CreditorWatch is a new ASIAL member benefit - for more information contact Chris Tredwell: chris.tredwell@creditorwatch.com.au

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Who’s monitoring your alarm?

For the past 20 years, ASIAL has operated a well-respected system of inspections that check compliance with Australian Standard 2201.2:2004 (Intruder Alarm Systems - Monitoring Centres). The scheme provides customers with the reassurance that the standards applied at a monitoring centre are independently audited on a regular basis.

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ASIAL NEW MEMBERS

WELCOMETO OUR NEW MEMBERS ASIAL is pleased to welcome the following new members who have joined the Association over the past few months.

MEMBERS

Hyperion Security Pty Ltd

Security 1 Manpower Pty Ltd

ADCCTV Electronics Pty Ltd

Individual Protection Group Pty Ltd

Serenity Security Systems

Aussie Surveillance

Innov8tive Systems Pty Ltd

Shredlock Australia Pty Ltd

Bestway Electronics Pty Ltd

Kevlar Security Solutions Pty Ltd

Silk's Security

Boss Electrical & Mechanical Pty Ltd

Lentek Pty Ltd

SIN SEC Australia Pty Ltd

Bring Enterprises Pty Ltd

Montal Security Corporation Pty Ltd

Skytech CCTV

Coastal Sound and Vision Pty Ltd

MPS Global Security Group Pty Ltd

Secure Security International Pty Ltd

Devtel Communications And Property

PON Project Services Pty Ltd

Superior Services Group Pty Ltd

DML Services Group Pty Ltd

Prosec Management Group and iDetect

SydneyTraining Academy Pty Ltd

Eureka Security Pty Ltd

Protectcorp Security Pty Ltd

System Technology Services

Firearms Advanced Shooting

Prox Access Pty Ltd

Track Security Pty Ltd

Techniques

Quest Security Pty Ltd

Zone Patrol Pty Ltd

Forge Group Asset Management Pty Ltd

Red Flag Systems

RECENT ASIAL MEMBER RECOGNITION PROGRAM RECIPIENTS The ASIAL member recognition

information by visiting

Bronze (6-10 years membership)

program acknowledges longstanding

www.asial.com.au/Memberecognitio

Corporate Locksmiths Pty Ltd

association members. Recognition

nprogram or you can email

Deanmac Emergency Services Pty Ltd

categories include Platinum (25

security@asial.com.au

HTP Security Pty Ltd Infront Static Services Trust

years+), Gold (16-24 years), Silver (11The following organisations have

Pacific Strategies & Assessments Pty Ltd

attained recognition levels:

Radio Data Communication Pty Ltd

the recognition program. If you are

Silver (11-15 years membership)

SCI-Blue Services Pty Ltd

eligible and have not already signed

Crackweld Pty Ltd

Southern NSW Investigations & Southern

up to the program (there is not cost

I Security & Technology Pty Ltd

NSW Security

to sign up), you find out more

MK Systems Pty Ltd

15 years) and Bronze (6-10 years).

438 members are now enrolled on

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