Item 14.4 - Attachment 3 |
Regulation &
Enforcement of Brothels and massage Parlours (D00935148) |
CITY LEADERSHIP AND MANAGEMENT
ITEM NUMBER 13.3
SUBJECT Regulation &
Enforcement of Brothels and Massage Parlours
REFERENCE F2007/01985 - D00935148
REPORT OF Strategic Analyst, Crime and Corruption
Prevention
PURPOSE: This report provides
Council with an update on the work of the Strategic Analyst, Crime and
Corruption Prevention particularly in relation to the regulation and
enforcement of brothels and massage parlours. |
RECOMMENDATION (a) That
Council receive and note this report. (b) Further,
that Council refer both this report and the latest Report of
Investigation into Compliance Section to ICAC for information and review. |
BACKGROUND
1. The
Independent Commission Against Corruption (ICAC) commenced an investigation
into the activities of the Compliance Section of Council’s Development Services
Unit in November 2006 on the basis of information received. In August 2007, ICAC published a report of its
investigation finding that the former Team Leader Compliance Services acted
corruptly in accepting cash and sexual favours in exchange for failing to
undertake inspections and providing prior warning of inspections.
2. A
detailed report on improvements arising out of the ICAC report was provided to
Council on 29 October 2007 (SAR 34/2007 refers) and a further update appears
elsewhere on this Agenda, deferred from the Council meeting of 28 April 2008.
3. In
September 2007, a temporary position of Strategic Analyst, Crime and Corruption
Prevention (CCPA) was created. The
Workplace Reform Proposal includes the following background comments:
Recent enquiries both within
Council and by external agencies have shown the need for a more strategic
approach to information gathering and dissemination in relation to crime and
corruption trends in the Council area.
The long-term risks to the development and growth of
4. The
key accountabilities for this new position include:
(a) establish sustainable
networks for intelligence sharing in relation to crime prevention and
regulatory services
(b) contribute to the
reduction in the level of organized crime within the Parramatta Local
Government Area through collaborative operations between Council, law
enforcement agencies and Council’s legal service providers
(c) development of policies, procedures and
training strategies that enable an holistic risk-based approach to compliance
related services as part of Council’s corruption resistance strategy.
(See Position Description shown at Attachment
1)
5. Council
resolved on 14 April 2008 to receive a progress report on the work carried out
to date by the CCPA as detailed below:
(a) That a progress
report be provided by the Strategic Analyst, Crime and Corruption Prevention
Officer on the work carried out to date since his appointment and further, that
the officer’s view be sought on what actions need to be undertaken in order to
oversee the regulatory and development functions of Council, so as to ensure
appropriate and responsible standards of approval practices covering brothels,
massage parlours, licensed premises, tattooists and piercing establishments.
(b) Further, that in order to better
address the public interest and future integrity of the City’s governance
around such issues of brothels, licensed premise, massage parlours, tattooists
and piercing establishments, that an independent report be brought forward from
an appropriate body as to how those issues mentioned could be addressed and
strengthen Council’s adopted Crime Prevention Policy.
WHY FOCUS ON REGULATION OF BROTHELS
6. The corrupt conduct of the former Team Leader Compliance Services contributed in part
to a proliferation of illegal brothels and massage parlours within the
Parramatta Local Government Area. These
corrupt activities also enabled some approved brothels and massage parlours
within the Parramatta Local Government Area to operate in breach of their
consent conditions. These breaches
commonly included operating in breach of operating hours, operating with more
sex workers than permitted, operating more service rooms than permitted and
serious fire safety defects.
7. Brothel
owners and operators tend to be somewhat transient in nature and are not always
focused on complying with conditions of any Development Approval that may be in
place.
8. Illegal
brothel operators have little or no regard for planning and land use laws and
tend to shift their operations frequently to evade attention. The generation of large sums of what is
predominantly a cash business is a significant motivator for illegal brothel
operators to ply their trade.
IMPROVEMENTS FOLLOWING ICAC INVESTIGATION
9. In
August 2007, ICAC made a number of recommendations relating to Council procedures,
systems and staff training. The changes
and improvements that have resulted include:
(a) modification of the
(b) provision training to Compliance Team members
including brothel enforcement and investigative training
(c) formulation and implementation of corruption
resistant Operating Procedures for compliance activities involving legal and
illegal brothels and massage parlours and
(d) risk review conducted of Compliance
activities. Identification of OH&S
issues. Equipment issued and training
provided to Compliance Team.
Council’s response to the ICAC recommendations
are detailed in the separate report on this Agenda titled Report of
Investigation into Compliance Section.
10. The Integrity Steering
Committee has been established to oversight Council’s brothel and massage
parlour compliance activities, in particular, providing advice on policy and
procedural matters. The Integrity
Steering Committee was formed in October 2007 and its membership includes
General Manager (Chair), Special Advisor (John Mant), Manager Service Audit and
Review, Strategic Analyst Crime
and Corruption Prevention,
Group Manager Outcomes and Development, Manager Development Services and Group
Manager Corporate Services.
11. Early
this year, new procedures were introduced that enable the CCPA to review and
provide comment on all development applications relating to brothels, massage
parlours, licensed premises, tattoo parlours and piercing salons. The CCPA can provide information and advice
on the appropriateness of any intended land use with in our LGA to supplement
any information provided by external agencies such as the NSW Police. Recently
this has contributed to a number of applications for brothels and massage
parlours being refused.
12. The
CCPA undertakes an assessment of all brothels and massage parlours which
includes reviewing relevant Council records and intelligence data from external
agencies such as the NSW Police. Those
premises which are of particular interest to such external agencies, whether
authorized or operating illegally, are determined to be of special interest and
the relevant compliance activities are overseen by the CCPA in consultation
with the external agencies. This
ensures that Council’s activities do not compromise the investigations of other
agencies nor place its officers in undue risk.
13. The
NSW Police lead investigations into special interest premises and appoint a
Team Leader to liaise with other participating agencies, including
Council. These investigations follow the
standard operating procedures of the NSW Police and Council’s CCPA and
Compliance Officers participate in order to collect evidence in relation to
breaches of development consents.
14. There
are presently twelve special investigations in progress which have resulted in
entry to premises by way of either inspections pursuant to the Environmental
Planning and Assessment Act or by virtue of search warrants executed by NSW
Police or the Department of Immigration and Citizenship.
15. Key
matters investigated by way of joint agency operations include brothel owners
and operators engaging in activities such as the employment of illegal
immigrants as sex workers, sex workers obtained and detained by way of sexual
servitude and the use of underage girls as sex workers. Of concern is that these issues are predominant
amongst the licensed brothels within the Parramatta LGA.
16. Thirty-one
Penalty Infringement Notices have been issued by the CCPA to the owners and
operators of special interest premises, with a total fine value of
approximately $16,500. None of these
fines have been contested within the Courts.
17. Additionally,
the NSW Fire Brigade has issued two Section 10 Emergency Orders against licensed
brothels during these joint agency operations.
18. The majority of
brothels and massage parlours in Parramatta Local Government Area are not
determined to be of special interest to external agencies. Compliance activities relating to these
premises are managed by Council’s Development Control Team in accordance with
internal procedures. These procedures
have been developed to enhance corruption prevention in field activities and
cover matters such as management of evidence, use of utility orders and
occupational health and safety.
19. As
outlined in the separate Report of
Investigation into Compliance Section, some fifty inspections of brothels and
massage parlours (both unauthorised and approved) have been carried out by the
Development Control Team since October 2007.
These inspections have resulted in fifteen Brothel Closure Orders being
issued by Parramatta Council and four Utility Orders being issued by Parramatta
Local Court over the last six months.
20. Staff from Council’s Development Control and
Environment and Health teams carry out similar inspections of other types of
premises including tattoo parlours and body piercing establishments once
development consent has been issued.
Periodic inspections are conducted to ensure compliance with consent
conditions as well as in response to complaints which may be received in
relation to these land uses.
21. In
summary, significant improvements have occurred in the regulation and enforcement
of brothels and massage parlours within the local government area. The number of these premises has been reduced
overall and all premises identified by the ICAC Report have been closed and/or
closed and prosecuted by
22. The Special Advisor to the Integrity
Steering Committee, John Mant, has reviewed both this report on the recent
status report on implementation of the ICAC recommendations and provides the
following comments:
There are three lessons from the
Council’s regulation and
enforcement of brothels and massage parlours:
(a) The
importance of an intelligence based strategic approach, rather than merely
responding to complaints.
(b) The
virtue of detailed standard operating procedures that is documented and learnt.
(c) The
usefulness of inter-agency partnerships that build trust.
The
CCPA and the Development Control Team are to be commended for their efforts.
Council is leading the way in this difficult area of enforcement. As has been shown in cities such as
CONSULTATION
23. Council works
collaboratively on a variety of crime and corruption prevention activities and receives
regular community input through the Community Safety Advisory Committee. In addition to the recently completed City
Centre Crime Prevention Plan, Council is currently working with the NSW Police
on the development of a Memorandum of Understanding to support the
implementation of this plan. Council
also regularly participates in other forums such as the Parramatta Crime
Prevention Partnership and the Parramatta Liquor Accord. A separate report elsewhere on this Agenda
outlines the current operations of the Parramatta Liquor Accord.
24. As outlined above, Council has established
networks with external agencies including NSW Police and Department of
Immigration and Citizenship in a whole of government approach to the regulation
and enforcement of brothels and massage parlours. During preparation of this report, Parramatta
Local Area Command was invited to provide comment on Council’s recent
activities in the regulation and enforcement of brothels and massage parlours
including the role of the CCPA. The
response confirms the significant improvements that have been achieved as
outlined in the confidential ATTACHMENT
2.
CONCLUSION
25. Overall,
26. It is recommended
that Council refer both this report and the separate status report on the
Investigation into Compliance Section, to ICAC for information and review.
Nicholas Mamouzelos Sue Colman
Crime & Corruption
Analyst Acting General
Manager
Position Description - Crime & Corruption
Analyst |
3 Pages |
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Confidential Information from NSW Police - |
1 Page |
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Memorandum to Councillors of 28th May 2008 |
2 Pages |
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Initial Draft Report of Strategic Crime and
Corruption Analyst Dated |
5 Pages |
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REFERENCE MATERIAL