The challenge of regulating private military companies (PMCs) is to create an effective mechanism for the Government of the United Kingdom (UK) to oversee PMCs while maximising the benefits they can provide. This report, by the Secretary of State for Foreign and Commonwealth Affairs, presents PMC regulatory issues raised by the Foreign Affairs Committee (FAC) and the Government’s responses to Committee recommendations. The key regulatory issue is the balance between the costs of regulation and the costs and benefits of PMCs.
In the course of compiling its report, the FAC consultative process solicited opinion from both public and private sectors, including PMCs. Contributors to the process identified the following benefits of legitimate PMC activity:
- Assistance to weak but legitimate governments in establishing security for development;
- Provision of services of direct social and economic benefit;
- Assistance to United Nations peacekeeping missions;
- Protection of legitimate commercial and non-governmental activity in dangerous areas;
- Assistance to raise professional standards of local armed forces; and
- Economic benefits to UK businesses.
Contributors also raised the following concerns about PMC regulation:
- The risk of over-regulation of legitimate security-related businesses;
- Possible threats to human rights, national sovereignty and development in poor countries from PMC activities; and
- Lack of transparency and accountability of PMCs.
The following are the most salient FAC recommendations and responses by the Government:
- Both the FAC and the Government agreed that well-regulated PMCs could contribute to the establishment and maintenance of relative stability and may have a legitimate role to play in helping weak governments with security needs.
- In response to the FAC complaint that the lack of centrally-held information on contracts between government departments and PMCs is unacceptable, the Government attached a list of PMC-UK Government contracts to this report. The list contains only those contracts known to the Secretary of State; it does not list Department of Defence PMC contracts.
- The Government agreed with the FAC recommendation to consider how to deal with the possible involvement of PMCs in the overthrow of established states.
- The Government agreed to examine United States PMC regulations and explore a common PMC regulatory approach with the European Union.
- The FAC recommended that the Government consider using PMCs in UK humanitarian and peace support operations to reduce military over-stretch. The Government responded that while in principle PMCs could support United Nations (UN) missions, any formal UN request to the UK for assistance should be conducted by UK armed forces and not sub-contracted to PMCs.
- Both the FAC and Government agreed that a distinction between combat and non-combat PMC activities should be drawn and that an outright ban on all PMC military activity would be counterproductive.
- While the FAC recommended firearms should be used by PMCs only for training and self-defence, the Government responded that if PMCs are used by governments for security purposes, their use of firearms may be unavoidable.
- The FAC recommended that PMC licences include disclosure of company structure, client history and personnel, and that the principle of effective regulation should override PMC concerns about protecting client confidentiality. The Government agreed some disclosure would be necessary, but stressed the need to strike a balance between an effective regulatory process and placing unnecessary burdens on the private sector.
