Protection of Freedoms Bill

Lord Faulkner of Worcester Excerpts

Monday 6th February 2012 Lords Chamber

[Lord Rosser]

My Lords, the purpose of this amendment is to provide for strengthened and new powers of entry for the police to enter and inspect known or suspected scrap metal dealer premises, and any metal and records kept on the premises, as well as powers to close down dealerships should those premises be suspected of being used for knowingly handling stolen material. At present the police are able to enter only registered premises but this amendment will give the right to enter premises irrespective of whether they are entered on the register, as well as the power to close dealerships.

Considerable concern has been expressed in the light of the increasing incidence of metal theft related to the rise in its value, with the price of copper having doubled to more than £5,000 a tonne since 2009, and the value of scrap metal at an all-time high. This has become a highly organised crime. Metal is stolen to sell on to dealers who will probably smelt it down before selling it on. The impact of such thefts on many people, buildings and organisations is considerable, not least on the railway network and railway passengers and on churches and indeed war memorials, with at least one war memorial a week being stripped in London.

The cost of metal theft is now estimated to be running at £1 billion a year and causing some 16,000 hours of train delays. In total, Network Rail says the cost of such thefts has amounted to some £43 million across the United Kingdom. It is also apparently resulting in the deaths of two thieves a month as they attempt to strip cabling from electricity substations or railways. That last point may not arouse much concern or sympathy, but it is still the loss of two human lives a month which could be avoided and is perhaps a consequence of the current spate of metal thefts that is not often raised.

It is important that action is taken as quickly as possible. At least one major recycling firm has moved to cashless payment, and on Thursday we shall be debating my noble friend Lord Faulkner of Worcester’s amendment to the Legal Aid, Sentencing and Punishment of Offenders of Bill, which provides for cashless transactions to be compulsory in the scrap metal trade. This would be an important action in the drive against metal thefts and I commend my noble friend for his robust campaign on this issue.

We know that police forces are stepping up their activities against this lucrative crime but they need to be given further powers to combat it with maximum effectiveness. One such power is provided for in this amendment, namely stronger and new powers of entry for the police to premises suspected of being used for handling stolen metal and the power to obtain a closure order against a dealership where there is a belief that such criminal activity is taking place. This amendment, providing new powers to the police to enter and close down unregulated scrap metal dealerships, is in line with the recommendations of the Association of Chief Police Officers’ metal theft working group.

Combined with the amendment tabled by the noble Lord, Lord Faulkner, to the Legal Aid, Sentencing and Punishment of Offenders of Bill to ban cashless transactions, this amendment presents a robust package of measures to tackle this growing epidemic. I hope the Government will indicate their support for this amendment and ensure that the police are properly equipped to deal with the increasing incidence of metal thefts. I beg to move.

[Lord Faulkner of Worcester]

My Lords, I have added my name to Amendment 37A, tabled by my noble friends Lady Royall and Lord Rosser, because the new powers that it confers on authorities to enter and inspect scrap metal dealerships represent, as my noble friend Lord Rosser says, an important element in the comprehensive overhaul of the Scrap Metal Dealers Act 1964, which I have been calling for in your Lordships’ House since I asked my Oral Question on the subject on 3 October last year. It also fits perfectly with the move to cashless transactions, which the Home Secretary said in a Written Statement on 26 January that the Government now support. This is the subject of my own amendment to the Legal Aid, Sentencing and Punishment of Offenders Bill, which the Committee will be considering on Thursday, possibly alongside the Government’s own amendments, the details of which we are awaiting.

This morning I met Deputy Chief Constable Paul Crowther of the British Transport Police to discuss this amendment. As the House will be aware, the BTP has been in the lead on the metal theft issue and I again commend it for what it is doing to tackle it. It has asked me to tell your Lordships—and I quote directly from a message it has given me—that:

“The power of closure is something that we would really want for a number of reasons, not least so that we can support legitimate businesses who will comply with the cashless system when it is introduced”.

Over the last four months I have been overwhelmed by the representations that have been made to me about the necessity for government action to tackle what is now a metal theft epidemic. The Transport Select Committee in another place says that the theft of signalling cable was responsible for the delay or cancellation of over 35,000 national rail services last year. There are eight actual or attempted thefts on the railway every day. My friends in the heritage rail sector—and I declare an interest as the president of the Heritage Railway Association—report weekly thefts of metal objects from their yards, depots and sheds, the value of which runs into thousands of pounds. Almost no aspect of our national life has escaped unscathed: manhole covers; war memorial plaques; even huge pieces of art like the Barbara Hepworth sculpture in Dulwich Park or the statue of Dr Alfred Salter in Cherry Gardens, Bermondsey; lead from church roofs and sacred objects from within churches; electricity and telecom cables—the list is endless.

Many of your Lordships will have seen the open letter published in the Times on 11 January that was signed by an impressive array of business leaders, including the chairmen or chief executives of BT, Network Rail, the Energy Networks Association and the Ecclesiastical Insurance company. They called for a complete update of the Scrap Metal Dealers Act 1964. Among the long list of changes they want to see were police powers to close unscrupulous scrap metal dealers, and police authority to search all premises owned and operated by scrap metal dealers—the measure proposed in this amendment. In my view, the police should be given powers to inspect any articles and records kept on site and to close down dealerships should there be reasonable suspicion that they are handling and dealing in stolen metal.

It is abundantly clear that the law needs to be completely rewritten. In the other place tomorrow there will be a debate initiated by officers of the All-Party Parliamentary Group on Combating Metal Theft—I declare a very modest interest as one of its vice-chairs. In addition to the move towards cashless transactions they will call for a robust licensing scheme for scrap metal dealers to replace the present registration scheme, as well as all the measures that have been put forward by industry, the church and the police.

I shall be very interested to hear what the Minister has to say when he responds. I know that we will achieve a cashless regime either on Thursday or at Report stage of the LASPO Bill, but I hope that he will be able to give a commitment that there will at least be comprehensive legislation in the next Session which will rewrite the Scrap Metal Dealers Act 1964.

[Baroness Browning]

My Lords, I rise very briefly to endorse what noble Lords have said about the seriousness of metal theft, and I know that my noble friend the Minister is fully aware of the importance of this issue in addressing the existing legislation, which is clearly out of date.

Last year, when I had the privilege to serve in the Home Office, I became acutely aware not only of the breadth of this crime but also, as we have heard, of its effects. Stolen cables not only disrupt but cause chaos on railway lines, and also in telecommunications. I know that the Church of England has also carried out a very important report that looks at what has happened to its churches and cathedrals that have been affected by this.

The point I want to make—I know that my noble friend is aware of it—is that although we see these matters reported in the press, and some people have first-hand experience of the outcome of this crime, it is organised crime. These are not individual actions taken at random. Serious organised crime, on a large scale, is behind the metal theft that is taking place in this country. When, for example, cables are removed, or lead is removed from roofs, all too often the people concerned are not scurrying about; they are wearing the proper safety jackets, looking like workers who should be carrying out these functions. They steal vehicles that have commercial insignia on the side to make it look as though a legitimate vehicle is being loaded with the metal. A lot of thought, a lot of money and a lot of organisation goes into this. I hope that when my noble friend replies—he and I have discussed this very serious matter—he will be able to reassure the House that the Government are looking holistically at all the elements mentioned this evening. This whole question is about the seriousness of breaking through organisations that clearly find it financially viable to continue this very destructive activity.

--- Later in debate ---

[Lord Henley]

My Lords, I could refer the noble Lord to discussions that I have had with other people in the industry, who have pointed out that the high levels of cash in the industry are driving criminality. If we can remove a lot of that cash then we can possibly remove a great deal of the criminality. I am not saying that it will be a magic wand that will solve all the problems—just as revising the Scrap Metal Dealers Act 1964 will not solve all problems, as his noble friend Lord Faulkner knows well. However, they are steps on the road to better regulating this industry, which is needed.

We are looking for a coherent package of measures to tackle metal theft. Obviously there will have to be further measures and regulation in due course, possibly along the lines of the amendment of the noble Lord, Lord Rosser. I do not want to rush into that at this stage. There is an opportunity to go cashless and to increase what are, at the moment, the derisory fines available under the 1964 Act, and we obviously need to do more to that Act in the future.

I congratulate the noble Lord, Lord Rosser, on his ingenuity in finding a way of bringing forward amendments to this Bill on this subject. His noble friend Lord Faulkner tried to do so but failed. We also gave it some thought, but the drafting of the Bill is such that it is rather difficult.

[Lord Faulkner of Worcester]

The noble Lord is half right: I attempted to get cashless into this Bill and was told that I could not. I will help to get cashless into LASPO instead.

[Lord Henley]

My Lords, we have cashless in the LASPO Bill and I hope that it will deal with this problem.

We have to consider the other important points that need to be dealt with. One of those—and, again, this is why I am interested in how the Opposition voted on the previous amendment—is whether the powers of entry are adequate and what powers of entry need to be given to the police. We can look at these matters, first, in the LASPO Bill and consider further regulation in due course.

I welcome the support of the Front Bench opposite for further action in this area. Obviously, there is more that we can do. I do not think that this is the right way of going forward at this stage because, as I said, we want to bring forward amendments in the LASPO Bill on Report. I can give an assurance that as soon as possible thereafter, 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. With those assurances, I hope the noble Lord will feel able to withdraw his amendment.