Metal recyclers have warned that incoming regulations aimed at eradicating the illegal trade in scrap metal could fail, unless enforcement authorities are given greater resources to police the new laws.
Ian Hetherington, director general of the British Metals Recycling Association (BMRA), told letsrecycle.com that the Scrap Metal Dealers Act 2013, which comes into effect from next month may only serve to add to the administrative costs for legitimate dealers if not enforced adequately.
And, Mr Hetherington has urged metal recyclers to ensure that they are compliant with the new licencing regime.
The new laws, which were introduced as a Private Members Bill by Conservative backbench MP Richard Ottaway and received Royal Assent in February (see letsrecycle.com story) seek to toughen the licencing requirements for the operators of scrap sites.
Under the reforms, councils will be responsible for issuing a licence to scrap traders, subject to a fee which is to be determined by the local authority, which they will have the power to revoke or suspend.
However, according to Mr Hetherington, current laws mean the licence fee can only be used to enforce the regulations at licenced sites, and without further resources to focus on unlicenced sites, illegal operators may gain an advantage over those operating within the law.
Legislation
‘The important message we are trying to get across is that if you are registering with a local authority you need to get the application in between October 1-15.’
Ian Hetherington, BMRA
The Act is the second piece of legislation in recent years 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.
Mr Hetherington claimed that many operators were known to have breached the cash ban, which came into effect from December 2012 with only two prosecutions for cash for scrap having been carried through the courts and warned that inadequate policing could serve to punish compliant firms.
He said: These regulations represent a massive change in the way the industry is being regulated and a big increase in costs in licencing fees and the way it is administered. It is not only the regulation that counts, but also the quality of the enforcement.
We are seeing very evident breaches of the cash ban and that is very concerning. We will have the same problem we have with waste crime with people paying substantial fees to be regulated- while there is no money to target those who choose not to be compliant.
Mr Hetherington added that there needed to be greater focus on the issue from central government, but said he is concerned that parliament may ignore the problem now that legislation has been passed.
Application
Meanwhile, he also urged scrap metal site operators to ensure they are compliant with the incoming regulations, for which they will be required to submit an application to their local authority for a licence on or before the deadline of October 15.
The BMRA is this week launching a poster campaign to remind scrap dealers of their obligations under the new regulations with a particular focus on non-Association member companies.
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Mr Hetherington added: The important message we are trying to get across is that if you are registering with a local authority you need to get the application in between October 1-15 and you will automatically have a temporary licence which takes you through to December 1.
We are busy ensuring that our members and non members understand that and are ready for the new system. There is still a tremendous amount of work to be done.
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