Reformed scrap licensing regime begins

Scrap traders are now subject to the full requirements of the governments revised Scrap Metal Dealers Act, after a temporary licensing period for metal dealers came to an end yesterday (December 1).

Covering England and Wales, the law sees every scrap metal dealer responsible for obtaining a licence to trade from their local authority. It also requires more stringent background checks to be carried out on firms registering with the authorities.

The law, aimed at curbing the trade in stolen scrap metal, officially came into effect in October (see letsrecycle.com story). Scrap traders were given a two-month temporary licensing period to register with their local authority which has now come to an end.

Under the new regime, scrap dealers are only able to buy metal with a crossed cheque or via electronic transfer, and are legally required to record the identity of those selling material.

Magistrates also have the power to issue fines of up to 5,000 to any trader breaching licence conditions, operating without a licence or continuing to deal in cash.

The British Metals Recycling Association (BMRA), which represents the UKs licensed scrap recycling trade, said that the new legislation will limit the potential outlets for stolen scrap, and expose unscrupulous traders.

Enforcement

However, the organisation warned that without robust enforcement of the requirements by police, the Environment Agency and local authorities, illegal trade will continue to undermine licensed operators.

Ian Hetherington, director general of the BMRA, said: It is imperative that the new Scrap Metal Dealers Act is enforced with vigour. It will be a challenge for local authorities and police due to pressures on resources and decline in the focus on metal theft. However, the BMRA will work closely with both the police and councils to ensure that this is implemented properly.

This Scrap Metal Dealers 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.

Metal Theft

Meanwhile, figures published by the Home Office last week (November 28) show that a total of 61,349 incidences of metal theft were recorded during the year ending March 2013.

And, according to the government, the figures show a decline in occurrences of metal theft across the year, with 20,151 recorded in the first quarter (April to June 2012) to 12,076 in the last quarter (January to March 2013).

Commenting on the figures, crime prevention minister Norman Baker, said: Metal theft has a huge impact on communities and Im encouraged to see an early reduction in this crime.
The early signs are that our changes, including increasing financial penalties, banning cash payments and improving enforcement through the National Metal Theft Taskforce are starting to take hold.

Mr Hetherington added that the figures reinforced the scrap industrys call for tough enforcement of the new licensing regime, but urged the government to extend funding for its dedicated metal theft taskforce, established in 2011 but due to be disbanded by the government in March 2014.

He said: The Home Office figures demonstrate that coordinated and effective enforcement through initiatives such as the National Metal Theft Taskforce can be effective at reducing metal related crime. Sadly from March next year funding for the Taskforce will be withdrawn and it will be disbanded.