Kevin Hannon, trading as Non Stop Security in Limerick, was the first security company to be prosecuted in the state under Justice Minister Michael McDowell's new initiative.

Hannon was fined 2,000 last month for trading without a licence as legally required since last April. Costs of 1,200 were also awarded against Hannon who has three months to pay up or face seven days in prison for default.

One week later, the Private Security Authority, set up by McDowell in 2004, successfully prosecuted WatchAll Security services based in Blanchardstown, west Dublin.

WatchAll was fined 400 with costs of 650.

A spokesman for the Authority said it was preparing seven more prosecutions against private security companies as its campaign to weed out rogue operators gathers pace. The Authority was "delighted" with the 100% success it had achieved with prosecutions to date, he added.

Since April last, companies providing 'bouncers' to pubs, discos, night clubs and security guard companies must have a licence. To get a licence, the directors have to be vetted by the gardai to reveal any criminal convictions which may prevent them from operating in the private security industry.

They must also be tax compliant.

Up to last April, anybody could operate a security company without any restrictions, and a significant minority of companies were rogue operators engaged in criminal activities and protection rackets.

"The work of the inspectors is heavily intelligence-based and we are finding success in targeting not only those security providers operating without a licence but also those who employ unlicensed companies, " said the Authority spokesman.

"This is evidenced by the fact that nearly 150 businesses nationwide have terminated contracts with security companies which were operating unlicensed."

Faced with a critical shortage of licensed bouncers, it is understood that some pubs and clubs have now started to use their own staff to check customers at the door.

The next major phase of the Authority's work is to assess applications from individual security guards who will need a licence from April 2007. To date, 12,000 security guards have applied out of an estimated 20,000 employed in the sector.