Metal recyclers concerned by cash loophole

Metal recyclers have urged MPs to close a loophole in scrap metal laws which allows itinerant traders to continue to use cash to buy scrap metal while licenced yards prepare to adopt a cashless system.

A ban on cash trading for scrap metal is due to come into effect in December under the Legal Aid Sentencing and Punishment of Offenders Act (LASPO), in what has been described as the biggest change to the industry in its lifetime.

Under the legislation, licenced scrap yards will be prohibited from paying cash for material, but itinerant dealers are exempt from the ruling- leading to concerns from within the industry that legitimate trade could be driven underground and that there would be an uneven playing field.

The British Metals Recycling Association is calling on MPs to unite behind a private members bill put forward by Conservative MP Richard Ottaway, that would see the cash ban extended to include itinerant traders.

Yesterday (September 12), a Parliamentary Committee agreed on a draft version of the Scrap Metal Dealers Bill which, if adopted, will overhaul existing laws regarding the licencing and policing of scrap sites.

BMRA

Commenting on the progress of the bill, Ian Hetherington, director general of the British Metals Recycling Association, said: We are beginning to see a bill that should remedy some of the gaping loopholes that are left by the last bill. As it is a private members bill, it is vulnerable to any one MP voting against it, so we are working to ensure that MPs are informed about the issues.

There is an immense amount of concern about the imposition of LASPO in December, as this will be the biggest change to the industry in its life. They [scrap metal dealers] understand that it could lead to a large amount of the material they receive instead being diverted down the itinerant route.

Proposals

A draft version of the bill has now been published, with MPs set to vote on the proposals in Parliament in November.

Among the measures proposed to tighten rules around trading scrap metal are plans to make local authorities responsible for issuing a licence to trade in scrap metal, paid for by the licensee, for which the local authority will have the power to revoke or suspend should scrap dealers be found to be acting illegally.

Also, 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, the Bill will make it a legal requirement for identity to be produced at the point of sale of scrap.

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