Private investigators fear ‘wipe-out’ under new security laws

Private investigators’ ability to prevent fraud, among other services, could be severely hindered under new sweeping regulations to the security industry.

New laws aimed at cleaning up the security sector will send private investigators to the wall, industry experts say. Picture: John Appleyard

New laws aimed at cleaning up the security sector will send private investigators to the wall, industry experts say.

In what private eyes say could lead to a “wipe-out” of their industry, the new Private Security and County Court Amendment Act will send the cost of licenses soaring for 1283 active PIs.

This masthead has been told that under the new regulations, PIs will need both an individual licence and a business licence to continue to work in the industry.

It is estimated it will cost PIs up to an extra $4500 in fees and top $5 million across the industry.

Richard James, who heads an industry working party opposing the changes, said his profession had been unfairly caught up in the fallout from the Covid-19 quarantine debacle of 2020.

Private investigators fear they will be hindered at doing their job. Picture: John Appleyard / Archive

Mr James said there were “no similarities” between the security industry and private investigators.

“It’s a lazy and poorly thought through process to fix the problem of sham contracting for security guards which was exploited by unscrupulous security companies during the hotel quarantine debacle,” Mr James said.

“We are not part of the problem so we should not be captured by this change.

“There’s going to be a flood of experienced investigators quitting because of the costs and red tape.

“Almost every private investigator is a subcontractor, including single mums who work part-time, and they will simply leave.

“It will also be a barrier for new blood coming into the industry.”

Mr James, who operates RIVICA Investigations and Covert Solutions, said PIs were seeking an exemption from the new regulations.

In a letter to Deputy Premier Ben Carroll, Mr James said the changes threatened the quality and availability of investigative services that support fraud prevention, injury claims validation and public confidence in compensation systems.

Richard James, who heads an industry working party opposing the changes, has written to Deputy Premier Ben Carroll. Picture: NewsWire / Luis Enrique Ascuia

Mr James said his firm was engaged by WorkCover and the Transport Accident Commission to uncover fraudulent claims while law firms and other clients used its services to uncover child abduction cases and to catch thieves stealing from workplaces, among many roles.

Another private investigations expert, David Gray, agreed most of the subcontractors he hired would quit under the new regime.

“These people are battlers,” he said.

“Many of them have no other skills so they will be left unable to provide for their families if this goes through.

“The pool of private investigators in Victoria are almost exclusively professional subcontractors in the purest form.

“They pay for and operate their own vehicles and equipment and work for multiple PI firms across the industry.

“These people are hard working professionals operating in a specialised industry.”

An Allan government spokeswoman said the new regulations would raise standards and were currently out for consultation.

“These proposed changes will modernise private security, helping raise professional standards across the industry so it can continue to contribute positively to community safety,” she said.

She said that the cost of an individual private investigators licence would not rise, but PIs would require an additional business licence to work.

Originally published as Private investigators fear ‘wipe-out’ under new security laws