Backing the Bill

The metals recycling industry has become one of the most advanced recycling sectors in the UK but the legislation regulating it hasnt changed in almost 50 years.

A reform of the Scrap Metal Dealers Act (SMDA) 1964 is well overdue and so the Bill introduced last month to amend the law relating to scrap metal dealers has been a much welcomed step forward.

Last week, Richard Ottaway MP, who is attempting to reform the scrap metal industry through a Private Members Bill, visited two BMRA member sites to learn more about the industry ahead of a debate this Friday (13 July). BMRA welcomed the opportunity to explain about the industry. It is, after all, essential that Government works with the industry and the relevant enforcement agencies to introduce a reform which will be effective in its objectives whilst protecting legitimate business.

Legislation

If it is passed, the Bill will strengthen existing legislation whilst closing off current loopholes created by the Legal Aid, Sentencing and Punishment of Offenders Bill (LASPO) amendments earlier this year. BMRA accepts the governments decision to ban the purchase of scrap metal for cash through the LASPO Bill however this measure alone will not stop metal thieves from disposing of stolen metal whilst some continue to pay cash for scrap.

The proposed Bill will ensure the cash ban brought about by LASPO will apply to all businesses and individuals that collect, purchase, process or sell discarded metals suitable for reprocessing for reward including itinerant collectors and salvage operators who are currently exempt.

Other measures such as establishing a nationally-accessible register of all licensed metals recyclers and traders would provide a low-cost means to deliver consistent record keeping and enforcement measures across the UK. This would help to identify and close down illegal sites. The reform would also give the police and local authorities the power to close businesses if foul play is suspected. Whilst BMRA is fully supportive of police powers to suspend licences where necessary, it is important to put a proper judicial process in place to ensure legitimate business is not disrupted.

Timetable

BMRA continues to urge Government to replace the Scrap Metal Dealers Act without delay and to implement it alongside the cash ban to effectively isolate and punish those who operate outside the permitting and licencing regime and provide an outlet for stolen metal. This will negate serious disruption for individual businesses and the secondary metals market as whole.

The metals recycling industry has been calling for an overhaul of the Scrap Metal Dealers Act (SMDA) 1964 such as this for some years. It is no longer fit for purpose and the reform which this Scrap Metal Dealers Bill will bring about will improve regulation and enforcement of the industry, helping to curb outlets for stolen metal whilst allowing metals recyclers to continue to maximise recycling and recovery.