CoESS and ASSA-I Third Party Liability

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1 CoESS and ASSA-I Third Party Liability DG ENTR Workshop on Security Industry Policy October 18, 2011 Hilde De Clerck Secretary-General of CoESS and ASSA-I

2 Aviation Security Services Association International (ASSA-I) ASSA-I Founded in 2002 (in the aftermath of the 9/11 terrorist attacks) Non-profit organisation Members: private security services companies providing security services at airports and for airlines Corresponding member of CoESS (Confederation of European Security Services) and responsible for this area within CoESS Goals Defend members interests Claim necessary awareness about fundamental role human input (definition of security) Promote high-quality security services October 18, 2011 DG ENTR Workshop on Security Industry Policy 2

(Confederation of European Security Services) and responsible for this area within CoESS Goals Defend members interests Claim necessary awareness

3 Confederation of European Security Services (CoESS) Founded in 1989 as a European umbrella organisation for national private security associations Represents 29 member federations in 27 countries 20 EU Member States 50,000 private security companies 2 million private security staff Represents all industry segments, including, but not limited to: guarding, transport of valuables, critical infrastructure protection, airport security, maritime security, monitoring and remote surveillance CoESS member federations are in turn representative within their countries and within the segments they represent October 18, 2011 DG ENTR Workshop on Security Industry Policy 3

but not limited to: guarding, transport of valuables, critical infrastructure protection, airport security, maritime security, monitoring and remote surveillance

4 Aviation security services in Europe Basic facts & figures 2010 Total turnover European aviation security services market (public and private) Ca. 3 billion 56% of the market outsourced to private security providers Ca. 1.6 billion ASSA-I members = ca. 72% of the outsourced market Total number of jobs European aviation security services market (public and private) ASSA-I members Not unimportant figures! Not taken into account (stress is only on technology/equipment) Interaction Systems Processes/procedures Human element Ca billion Ca. 80,000 Ca. 45,000 jobs (26,000 M and 15,000 F) October 18, 2011 DG ENTR Workshop on Security Industry Policy 4

72% of the outsourced market Total number of jobs European aviation security services market (public and private) ASSA-I members Not unimportant figures!

5 Problem setting In case of terrorist attack/act of war Enormous losses / discontinuity of services / closing down of companies One element human would be missing No satisfactory insurance coverage available Many contracts: high risks to be accepted or no contract No solution available at present Consequences No continuity Job losses CIP risks Etc. October 18, 2011 DG ENTR Workshop on Security Industry Policy 5

available Many contracts: high risks to be accepted or no contract No solution available at present

6 CoESS/ASSA-I Survey regarding the TPL of Aviation Security Services Providers Why a survey regarding the Third Party Liability (TPL) of Aviation Security Services Providers? In the debate No information No knowledge No awareness October 18, 2011 DG ENTR Workshop on Security Industry Policy 6

7 CoESS/ASSA-I Survey regarding the TPL of Aviation Security Services Providers Preliminary conclusions Results of the survey make it clear that TPL is not/not well regulated at national level Definitions are sparse and the law does not adequately protect private security services providers from insurmountable claims In many countries: no special provisions to regulate TPL Conclusion: EU must consider to take up this issue! ECIP Directive October 18, 2011 DG ENTR Workshop on Security Industry Policy 7

protect private security services providers from insurmountable claims In many countries: no special provisions to regulate

8 CoESS/ASSA-I White Paper What is needed? A European-initiated and European-driven solution for the TPL of Aviation Security Services Providers Why? TPL still represents a huge threat for private security services providers delivering security services at airports/other high risk sites As far as the responsibility of private security services providers is concerned, it is a fact they only have a limited role as one link in the entire security chain (governments, authorities, operators etc.) Reality, however: exposure of private security services providers to liability in case of a terrorist attack is potentially unlimited! Question: is it normal that public responsibility is ENTIRELY put upon private providers? October 18, 2011 DG ENTR Workshop on Security Industry Policy 8

providers is concerned, it is a fact they only have a limited role as one link in the entire security chain (governments, authorities, operators etc.

9 CoESS/ASSA-I White Paper: A European solution for the TPL of Aviation Security Services Providers State of play No European solution exists However, some EU Member States (e.g. France) have some solutions (recognise and take back part of the responsibility) In view of its potential magnitude and pan- European implications, the security services industry calls for Proper consideration of the problem at EU level As a matter of priority October 18, 2011 DG ENTR Workshop on Security Industry Policy 9

France) have some solutions (recognise and take back part of the responsibility) In view of its potential magnitude and pan-

10 CoESS/ASSA-I White Paper: A European solution for the TPL of Aviation Security Services Providers CoESS and ASSA-I s position and views on TPL Security providers are only one part of the security chain Terrorist attacks are against States and governments, not against the aviation industry or, more specific, against security providers Therefore the final and overall responsibility lies with governments If ASSA-I and the security providers highly invest in quality (on a voluntary basis) and hence increase security, governments should compensate their efforts with the right protection from TPL October 18, 2011 DG ENTR Workshop on Security Industry Policy 10

providers Therefore the final and overall responsibility lies with governments If ASSA-I and the security providers highly invest in quality (on a voluntary basis)

11 CoESS/ASSA-I White Paper: A European solution for the TPL of Aviation Security Services Providers CoESS and ASSA-I urge the EU To take TPL duly into account in upcoming policies The results of DG ENTR s public Consultation on an Industrial Policy for the Security Industry show that Private security providers are by far not the only stakeholders asking for an urgent solution TPL affects also airports, airlines, equipment manufacturers and freight forwarders and, by extension, other services providers October 18, 2011 DG ENTR Workshop on Security Industry Policy 11

that Private security providers are by far not the only stakeholders asking for an urgent solution TPL affects also airports, airlines,

12 CoESS/ASSA-I White Paper: A European solution for the TPL of Aviation Security Services Providers A clear and binding EU initiative should aim at Stating the shared responsibilities when private security is concerned Determining the specific responsibility of each stakeholder involved in security Limiting the responsibility/liability of private security services providers Establishing a mechanism for handling third party claims Thus eliminating the risk for private security services providers of unlimited third party liability October 18, 2011 DG ENTR Workshop on Security Industry Policy 12

security Limiting the responsibility/liability of private security services providers Establishing a mechanism for handling third party claims Thus

13 CoESS/ASSA-I White Paper: A European solution for the TPL of Aviation Security Services Providers CoESS and ASSA-I believe a solution can be found by applying the following principles Limited liability, or A liability that is capped And exclusively channelled towards one actor Whose viability remains protected by a three-tier liability regime, respectively Covered by insurance A fund financed by all interested parties And state intervention October 18, 2011 DG ENTR Workshop on Security Industry Policy 13

channelled towards one actor Whose viability remains protected by a three-tier liability regime, respectively Covered by

14 Thank you for your attention! ASSA-I Aviation Security Services Association International Jan Bogemansstraat Rue Jan Bogemans 249 B-1780 Wemmel, Belgium CoESS Confederation of European Security Services Jan Bogemansstraat Rue Jan Bogemans 249 B-1780 Wemmel, Belgium T F assa-i@i-b-s.be Web: T F apeg-bvbo@i-b-s.be Web:

Wemmel, Belgium CoESS Confederation of European Security Services Jan Bogemansstraat Rue Jan Bogemans 249

A European solution for

A European solution for Third Party Liability of the Aviation Security Providers White Paper by CoESS and ASSA-I June 2010 CoESS Confederation of European Security Services Jan Bogemansstraat Rue Jan Bogemans