Scrap metal industry reforms become law

New laws governing the licensing and policing of scrap metal recycling sites will come into force from October, after the Scrap Metal Dealers Act received Royal Assent yesterday (February 28).

This Act is the second piece of legislation in 12 months to target the scrap industry with a view to eliminating the illegal trade in stolen metal, following the passage of the Legal Aid and Sentencing of Offenders (LASPO) Act in 2012 which banned scrap dealers from trading in cash.

Key among the provisions in the Scrap Metal Dealers Act is the closure of a loophole created in the LASPO Act which allows itinerant traders to continue to pay cash for scrap, which many within the industry claimed would undermine legitimate trade.

Meanwhile, it will also give greater powers to councils, who will be responsible for issuing a licence to trade in scrap metal, which they will have the power to revoke or suspend.

In addition, the Environment Agency will be responsible for maintaining a register of all licensed scrap dealers in the UK, which will be made publicly available. And, it will also be a legal requirement for photographic proof of identity to be produced at the point of sale of scrap.

Police and local authorities will also be given greater powers to enter and inspect unlicensed scrap yards, with clause nine of the Act allowing entry to these premises with a court order.

BMRA

Commenting on the news, Ian Hetherington, director general of the British Metals Recycling Association (BMRA), said: The Scrap Metal Dealers Act receiving royal assent is a milestone in bringing licensing up to date and in tackling metal theft.

The implementation of the new Act in October will eradicate some of the issues brought about by the introduction of the LASPO Act late last year and will help to close down traders who operate on the wrong side of the law.

We now have six months in which to work with local authorities, the Environment Agency, the police and members to make sure that everyone has the tools in place to follow and enforce the new rules as quickly as possible.

The Bill was tabled by Conservative backbench MP Richard Ottaway as a Private Members Bill, which traditionally have little chance of making it into the statute book. But, Mr Ottaways Bill had cross-party support, which helped ease its passage through Parliament.

LGA

The development was welcomed by the body representing councils, Local Government Association (LGA) which said that the new law would help to bring metal thieves to account.

Councillor Mehboob Khan, chairman of the LGAs Safer and Stronger Communities Board, said: Councils have long been clear that we need a comprehensive and modern system for running the metal recycling industry, with a proper licensing system to hold scrapyards to account.

Now that the Bill has passed through Parliament, we look forward to working with the Home Office and councils to make sure the system is up and running as quickly as possible. Communities up and down the country will be breathing a sigh of relief that parliamentarians have recognised the seriousness of this issue and are prepared to act to make it easier for councils and the police to both prevent and tackle this heinous activity.