Off-duty gardaí and soldiers are double-jobbing on short-term security guard contracts and not paying PAYE and PRSI, a SIPTU official alleged before an Oireachtas committee yesterday.
"It would be very prevalent amongst people doing a few days here, a few days there. It would largely involve non-reputable operators," said Mr Kevin McMahon.
The allegation was made despite a denial recently by the Garda Commissioner, Mr Pat Byrne, that there was any evidence that members of his force were "moonlighting".
Meanwhile, security companies have lost 20 per cent of their business in the last year to cheaper, black economy operators, security industry representatives told the Committee on Justice, Equality, Defence and Women's Rights.
Wages costs have risen dramatically over the last three years, but the price of security contracts was falling from €11.50 an hour per security guard to just €8.50 in some cases, the industry claimed.
Mr Joe Costello TD of Labour said low-cost security contracts should be declared invalid unless companies could prove they can pay more than the minimum wage.
Mr Billy Brown, the chairman of the National Union of Security Employers, said the industry now had 800 companies, employed 12,000 people and turned over €250 million annually. "This has led to an ever-increasing plethora of incarnations and reincarnations of companies that have no regard whatsoever for the quality of service provided."
Mr Paul Flanagan, the president of Security Federation (Ireland), said just 320 companies have registered under the IS228 and IS199 certification schemes.
Under the Private Security Services Bill, 2001, the Government intends to licence all employees and companies involved in security, subject to safeguarding genuine rights to privacy.
