BMRA warns of driving scrap trade underground

A ban on cash payments for scrap metal would drive more dealers to operate illegally, the head of the British Metals Recycling Association (BMRA) has said.

A Private Members Bill was set out in parliament last week (15 November) by the Labour MP for Hyndburn Graham Jones, proposing tighter regulations for scrap metal dealers. This included a ban on paying for scrap metal in cash and a requirement for identification to be shown at the point of sale.

BMRA director general Ian Hetherington said he welcomed discussion of the issue in parliament but stated that imposing a no-cash policy would unfairly harm legitimate businesses.

Speaking to letsrecycle.com, he said: The main area of concern for us is the idea that a ban on cash buying of scrap metal will take the problem away. At the moment there is a very large trend for end of life vehicles and fridges being sold for scrap and there is a big cash demand for these items. Half of our members do more than 50% of their business in cash, so this is not a minor sum.

The bill also proposes that police authorities should have the power to search and investigate all premises owned and operated by scrap metal dealers and to close yards where illegal activity is found. The motion received cross-party support and will be given its second reading in parliament on January 20. While only a minority of Private Members’ Bills become law, by creating publicity around an issue, they can indirectly affect government thinking and lead to fresh legislative proposals.

Mr Hetherington went on to argue that unless tougher policing on illegal metal recyclers is put into place, any attempts to prevent cash payments would simply drive people to sell their metal to unregulated scrap yards. He said: At the heart of this is the current inability of regulators to close the large number of illegitimate yards that are operating at this time, if they could do so we would be having a very different conversation.

He added: The normal person selling scrap will not be able to differentiate between legitimate and illegitimate scrap yards. If you have a car that has turned its wheel for the last time and you sell it for scrap, most people dont want to have to wait for a cheque to clear.

Pressure

The bill comes in the wake of increased pressure from organisations including the Local Government Association for tougher action on metal theft. The LGA highlighted the theft and sale of metal plaques from war memorials in the run up to Remembrance Sunday, calling for councils to be given greater power to combat metal thieves.

Prime Minister David Cameron also pledged earlier this month to review scrap metal laws. He said: The theft of metal, particularly from war memorials is an absolutely sickening and disgusting crime. We are working with the Association of Chief Police Officers to put in place a plan to deal with this, which will involve looking again at the whole regulation of scrap metal dealers. We are determined to put a stop to this appalling crime.