Metal Theft

Graham P Jones Excerpts

Tuesday 7th February 2012 Commons Chamber

[Graham Jones (Hyndburn) (Lab)]

I beg to move,

That this House notes that metal theft is becoming a serious issue for the UK; welcomes the Government’s announcement on introducing a cashless system and higher penalties; is concerned that the comprehensive package of measures which is needed to address this issue is not being introduced at the same time; believes that to effectively stamp out metal theft there needs to be a radical change in how the scrap metal industry is regulated; and calls on the Government to introduce a number of additional measures as a matter of urgency, including a robust licensing scheme for scrap metal dealers to replace the present registration scheme, a licence fee to fund the regulation of the licence, greater police powers to close unscrupulous scrap metal dealers in line with alcohol licensing, police authority to search and investigate all premises owned and operated by scrap metal dealers, use of photo identification and CCTV to identify sellers of scrap metal, and their vehicles, vehicle badging for mobile scrap metal dealers, and magistrates’ powers to add licence restrictions and prevent closed yards from re-opening.

First, may I express my thanks to the hon. Members for Dudley South (Chris Kelly) and for Worcester (Mr Walker) for co-sponsoring this topical Back-Bench debate and to the Backbench Business Committee for allowing Members of this House to debate this issue tonight? I also wish to mention my hon. Friend the Member for West Bromwich East (Mr Watson), who first raised this issue back in 2010. I understand that just last night, in the other place, metal theft was once again the subject of much discussion.

Metal theft is at epidemic levels. Industry is being hard hit by daily thefts and the general public are not only horrified at the escalation and cost, but disgusted at the theft of Britain’s heritage; reports of war memorials being desecrated have shocked the nation. We have seen lifeboat stations without communications, and last month Llandough hospital in Wales had to cancel 80 operations because of cable theft. Remote rural broadband services across Britain are too frequently knocked out. The Energy Networks Association claims that there has been a 700% increase in theft from the energy networks between 2009 and 2011. The Association of Chief Police Officers conservatively puts the cost at £770 million. I believe that a lack of accurate reporting—there is no specific crime code—probably means that the true cost is higher, but Deloitte puts the figure more conservatively at between £260 million and £600 million.

[Mr John Spellar (Warley) (Lab)]

Is not one of the key factors the disproportionate relationship between the value of the metal being sold and the cost of replacing it? For example, manhole covers are being sold for a few quid but the cost to Sandwell council of replacing them is £400, and it is losing 40 or 50 of them a month. A similar comparison can be made between the price of the cable that is being stolen and the disruption to travel. Should not the penalties reflect that cost rather than the value of the metal?

[Graham Jones]

My right hon. Friend is absolutely right and many in the House will share his view.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

Will the hon. Gentleman give way?

[Graham Jones]

I would like to make some progress, if possible.

The British Transport police state that there are eight attacks on the transport system each day, and that is of grave concern. Ecclesiastical Insurance reported that in 2011 there were 2,500 lead thefts from church roofs. Perhaps most shockingly, the War Memorials Trust estimates that one memorial is vandalised every week in the UK, and for only a very small amount of metal. Today’s debate is a reminder of the urgent need to tackle this scourge and of the importance of doing so; with the Olympics around the corner, it reminds us of the threat to essential services. Paul Crowther of the British Transport police described metal theft as

“the second biggest threat to our infrastructure after terrorism”.

Nigel Martin, the head of supply at Wessex Water, has said:

“Any one of these cable thefts can turn into a civil emergency.”

The Government’s response so far has been unclear. My comprehensive Bill was rejected, despite its forensic drafting by the Public Bill Office—I wish to thank the people there. The announcement of a ban on cash trade and the introduction of unlimited fines for those trading in stolen metal are welcome steps. However, the Government’s announcement misses key elements that underpin the success of a cashless payments system. First, a robust licensing system is required to overhaul the inadequate and flawed Scrap Metal Dealers Act 1964. Secondly, and as importantly, we need a UK wide taskforce to gather best practice and to bring together the key partners: the United Kingdom Border Agency; Her Majesty’s Revenue and Customs; the Environment Agency; local government, the National Crime Agency; banking; local police forces; and, importantly, industry. Those bodies need to come together in a positive way to tackle this scourge.

[Mark Tami (Alyn and Deeside) (Lab)]

My hon. Friend mentioned church roofs. Is he aware that insurance companies now have a £5,000 limit and will pay out only on that, but in most cases that does not get anywhere near covering the cost of the stolen lead?

[Graham Jones]

I am aware of that, and it appears that that figure is falling as a result of the escalation in lead thefts from church roofs. That is of some concern, especially as insurance is very hard to come by for some of the churches that have suffered.

The measures in this motion were agreed by the affected industries and, importantly, by members of the all-party group on combating metal theft. However, the Government’s two announcements somewhat sit in isolation, and that is where the concern lies. The Legal Aid, Sentencing and Punishment of Offenders Bill is an unsuitable legislative vehicle, so we need to move beyond it. It appears to be have been commandeered at the 11th hour and, unfortunately, no other measures have been allowed to be added to it. The Bill passed through this House only last November and notably absent were any measures to tackle metal theft. That raises further questions about this House’s ability to scrutinise last-minute amendments from the Lords.

In November, the Chancellor announced a £5 million pilot which has been started in the north-east—Operation Tornado. However, it will not report back until July, when the Olympics begin and Parliament starts its summer recess. I am concerned about that, as the approach being taken all seems a little disjointed, and I appeal to the Minister to bring coherence to the Government’s strategy.

Metal theft is a very particular type of crime. That is because, as my right hon. Friend the Member for Warley (Mr Spellar) said, its effects are disproportionate to the impact it has on other people; stealing £20-worth of metal can cause £100,000-worth of damage. Such a theft can remove a war memorial or result in the loss of life, and it cannot be calculated in financial terms in some cases. A theft in the Dartford tunnel area caused £29 million-worth of damage and a recent metal theft in Glasgow caused a further £14 million-worth of damage, including the part closure of a hospital.

Metal theft is also a very particular type of crime because the effectiveness of policing it is limited; the nation’s metal estate is so vast that there is not a police solution. The Government must look more intelligently and co-operatively if we are to “design out” the problem. We are talking about a failure of regulation and of joined-up working, not of policing.

[Several hon. Members]

rose—

[Graham Jones]

I have only 10 minutes available and I would like to make some progress.

In 2010, only 21 people were proceeded against under the 1964 Act, and only 18 were found guilty and sentenced. Of these 18, 10 received a fine and eight were given a conditional discharge. The average fine was £379, and only once was the maximum of £1,000 used. I welcome the response by the Home Secretary on sentencing and the comments of Keir Starmer, the Director of Public Prosecutions, who recently said that the Crown Prosecution Service would be taking a “firm stand” against metal thieves and would spell out the level of public disgust to judges.

Unfortunately, I am never shocked by the scale of criminal activity in the scrap metal industry. Cash is king for one reason and HMRC needs to wake up to that, as the Treasury is losing millions in revenue. A sting article in the Daily Mail last week exposed the size of the problem in the industry, as 40% of the dealers approached accepted metal that the undercover journalist told them was stolen. Shockingly, none of them reported this alleged crime to the police, and this is simply not good enough.

Two previous sting operations by BBC London and The Daily Telegraph have shown that those cases are not isolated. The measures called for in the motion will support honest dealers who play by the rules. Without those changes, the dishonest and the criminal will have a commercial advantage. I welcome the story of a south London scrap metal dealer, Stuart Nebbett, who is donating £21,000 to replace stolen plaques from war memorials in south London.

The industry needs reform. Last night, in the other place, the Minister stated that a robust licensing scheme would be brought in “as soon as possible”, but I should like to know when and how. I do not want to see any drift on this matter or any relaxation of tough regulation. The way to deal effectively with this crime is to choke it off at the point at which it enters the system, before war memorials can be laundered through apparently legitimate metal dealers and before all traceability is lost. Legitimate dealers are being infected through actions at entry-level points in scrap metal trading. The public need a commitment from the Government that they will introduce a full licensing scheme funded by a licence fee. That is the first step towards fully legitimising the scrap metal industry and is a prerequisite to the introduction of cashless payments, as it would provide a robust legal framework with traceability at the heart of the process, particularly by giving magistrates the power to add licensing restrictions.

There is also a need for increased powers for police to enter, search and close the premises of those suspected of dealing in illegally obtained scrap metal. At the moment, they require a warrant to enter premises that are not registered by the local authority. It is important in identifying stolen metal entry points that the Environment Agency waste carrier notices are enforced and that other agencies and, crucially, the public can identify itinerant traders and, at the other end of the scale, illegal containerisation with the introduction of vehicle badging.

The robust measures called for in the motion are one half of the solution, but good practice is the other half and I am concerned that we might turn a blind eye to good practice should we regulate the industry. Together, those two kinds of action will free up scarce resources to deal with displacement of the crime and to allow the agencies involved to shift resources to the hardcore criminals who will seek to divert their criminal activities away from regulated scrap metal dealers.

I conclude by affirming that the House wants to know what the Government are going to do and when they are going to do it. Lord Henley said last night in the other place that

“as soon as possible…by whatever legislative means is appropriate, we will bring forward the further amendments that need to be made, particularly to the Scrap Metal Dealers Act 1964.”.—[Official Report, House of Lords, 6 February 2012; Vol. 735, c. 54.]

I welcome those comments. If the Government do have a clear strategy, I hope that the Minister will be able to make that clear and provide a road map and timetable for regulation. At the moment, it appears to the industry and those outside it that this might be policy on the hoof.

--- Later in debate ---

[Graham Jones]

Will the Minister give way?

[Lynne Featherstone]

I am sorry, but I really want to make some particular points. If I have a minute at the end I will give way. Members have been asking all evening for me to answer the points raised, and I intend to do so.

Strong legislation is absolutely vital, but it must be backed up by strong enforcement action from the police and other law enforcement agencies. We are working with the Association of Chief Police Officers, local police forces and the British Transport police to strengthen law enforcement activity. Recognising the damage that metal theft causes to our economy, the Government have committed £5 million of additional funding to establish a dedicated national metal theft task force. The taskforce will complement and expand existing enforcement activity not only by the police, but by a range of law enforcement agencies.

The message we are sending out is clear: metal thieves will have nowhere to hide. We have recently seen some significant sentences given to metal thieves, which I hope will continue. I welcome the recent announcement by Keir Starmer, the Director of Public Prosecutions, in which he instructed prosecutors to use every tool at their disposal to take a firm stand to convict metal thieves. I make it clear that we are in no way targeting the legitimate metal recycling industry, which does important work that is good for our economy and good for our environment.

Many Members on both sides of the House asked about a number of measures, and the Government believe that the measures that we have already announced will make a big difference, but we are open to new ideas and are already considering how we can further strengthen our approach to metal theft, including the proposals outlined in the motion.

We are considering, for example, how the existing registration scheme can be strengthened, with a robust licensing scheme for scrap metal dealers to replace the current registration scheme, and we agree that the existing scheme under the Scrap Metal Dealers Act is outdated and in need of improvement. The Home Office is already seeking to make such changes as soon as parliamentary time allows.

On greater police powers, which Members on both sides have asked for, we are keen to provide the police with sufficient powers, including entry and closure powers covering the scrap metal industry, to tackle metal theft offenders, and we are seeking clarity on whether we can include amendments to police powers of entry as part of wider measures in the Legal Aid, Sentencing and Punishment of Offenders Bill.

We want to regularise the position under the 1964 Act, whereby the police have the power to enter yards that are registered under the Act, because, as my hon. Friend the Member for Wyre Forest (Mark Garnier) said, their inability to go into unregistered yards is a real anomaly. In the meantime, the work of the dedicated metal theft task force, along with unlimited fines and the end of cash transactions, will tackle the problem until we can bring all those powers into being.

Any new scheme must support legal operators and promote the green economy, but it must also have the power to tackle scrap metal dealers who wilfully help the stolen metal trade, so we will consider further measures, listen to the outcome of the debate and see whether there is more we can practically do to stop metal theft. I shall now give way to the hon. Member for Hyndburn, but I hope that Members appreciate that they did ask for an answer to these questions, and I have been trying to give them one.

[Graham Jones]

I am grateful to the Minister for giving way, and I have just a simple and straightforward question. Will Government Front Benchers support the motion tonight?

[Lynne Featherstone]

Government Front Benchers will not oppose the motion tonight, and I am sure that hon. Members on both sides will support it.

We are strengthening the law, cracking down on rogue scrap dealers and targeting the criminals who supply them. That is the right way to tackle this devastating crime. That is what this Government are doing, and this Government are taking action. Nothing happened during the previous 13 years.

[Graham Jones]

First, I welcome the Minister’s words, because we are beginning to move in the right direction. We still have some outstanding issues, including whether the Government are going to be robust enough, but we have heard everybody’s comments tonight, and we in the plural sense—the public, Members and those in the other place—want to see tough action, so that is a key question for the Government.

Secondly, on the point about timing, Members want to see measures introduced as soon as possible, and one key issue for many Members is the fact that we have the summer recess coming up and the Queen’s speech, so legislation needs to come forward. We also have the Olympic games, and, to cite again the words I mentioned earlier, we are not far from a national catastrophe. Paul Crowther from the British Transport police said that the issue is second only to terrorism, so urgency is key in this issue, and many people both nationally and locally feel that way.

[Robert Flello]

Would it not be extremely embarrassing for this country if the Olympics were disrupted by metal theft?

[Graham Jones]

I say politely to my hon. Friend, “It wouldn’t be very good, would it?” It would not be a good advert if London ground to a halt and the rail network stopped, so it is imperative that we are seen to act.

I am grateful to Members for being here tonight in such numbers in order to express their opinion on the need to act on metal theft. The Government need not just to look at the timetable and to bring forward legislation as soon as they can; they need to go beyond legislation. We need to consider being far more proactive, so I am very grateful for Members’ contributions this evening.

Question put and agreed to.

Resolved,

That this House notes that metal theft is becoming a serious issue for the UK; welcomes the Government’s announcement on introducing a cashless system and higher penalties; is concerned that the comprehensive package of measures which is needed to address this issue is not being introduced at the same time; believes that to effectively stamp out metal theft there needs to be a radical change in how the scrap metal industry is regulated; and calls on the Government to introduce a number of additional measures as a matter of urgency, including a robust licensing scheme for scrap metal dealers to replace the present registration scheme, a licence fee to fund the regulation of the licence, greater police powers to close unscrupulous scrap metal dealers in line with alcohol licensing, police authority to search and investigate all premises owned and operated by scrap metal dealers, use of photo identification and CCTV to identify sellers of scrap metal, and their vehicles, vehicle badging for mobile scrap metal dealers, and magistrates’ powers to add licence restrictions and prevent closed yards from re-opening.

[Mr Deputy Speaker (Mr Nigel Evans)]

Before we come to the next business, may I say that this clearly was a popular debate and apologise to Members who put in to speak, but were constrained or did not get in at all?