Lord Rosser
Main Page: Lord Rosser (Labour - Life peer)Department Debates - View all Lord Rosser's debates with the Home Office
(11 years, 8 months ago)
Lords ChamberMy Lords, although this is a Private Member’s Bill, it is nevertheless still a Bill of 23 clauses and two schedules. I gather it is what is known in the parliamentary trade as a handout Bill, which is apparently a Bill offered by the Government to a Back-Bench MP to take forward as a Private Member’s Bill. It seems that Governments do this either because they cannot find the time in their legislative programme or because, for some other reason, they do not want to present it themselves. I am not sure in which of those two categories this Bill falls.
Last year we called for tougher powers to close down rogue traders; for everyone selling scrap to have proof of identity and a record from the point of sale; for the licensing of scrap metal dealers, rather than the current method of registration; and for a move to ban cash transactions, especially for large-scale, high-value scrap metal deals. These measures formed the basis of much of the Private Member’s Bill—the Metal Theft (Prevention) Bill—introduced by the Member of Parliament for Hyndburn in November 2011. That Bill, which amended the Scrap Metal Dealers Act 1964, made provision for a new registration scheme for scrap dealers, restricted financial transactions to cashless payments and gave police officers new powers to enter, inspect and close scrap yards.
Unfortunately, the Bill was blocked at Second Reading in the Commons, with the active support of the government Front Bench team there. The following week, the Government announced that they would introduce their own amendments to the 1964 Act, banning cash payments by scrap metal dealers, but with an exemption for itinerant collectors; increasing the level of fines available for offences; and giving police new powers of entry to scrap yards. These amendments were introduced into what became the Legal Aid, Sentencing and Punishment of Offenders Act 2012.
Now the Government have accepted that their amendments to the LASPO Act 2012 were inadequate. This was pointed out at the time, not least by my noble friend Lord Faulkner of Worcester, who has done so much to push successfully for the provisions in this Bill. The Government are now supporting the Bill we are debating today, which is very similar to the Bill from the Member of Parliament for Hyndburn that was blocked in the Commons last year. This Bill also repeals amendments—the Government’s own amendments —which were inserted into the LASPO Act 2012 only a few months ago, and which are in the process now of being repealed before they have even been implemented.
For a reason that is not clear, the Government did not produce a Bill of their own following the blocking of the Private Member’s Bill in the Commons last year. As a result, the Government are now supporting this very similar Private Member’s Bill after a year’s delay and, as a consequence of the measures being in a Private Member’s Bill, it appears that the Government found themselves boxed into a corner at the end of the proceedings on the Bill in the Commons by a handful of their own Back-Benchers and had, apparently, to agree to bring forward what is, in effect, a sunset or expiry clause for this Bill after five years in order not to risk losing the Bill in the Commons due to lack of time—a situation which, if I am correct, would not have arisen had the Government produced their own Bill. While this Bill is most welcome, the Government’s handling of legislation on this issue has not been without delay and indecision.
The Bill includes the measures for which we have been calling for some time and addresses the issues so powerfully highlighted and explained by the noble Baroness, Lady Browning, which have been the cause of real concern. This is not only about the hundreds of millions of pounds that metal theft is costing the UK economy each year, serious though that is—with the biggest economic impact being on the telecoms, utilities and transport sectors, as well as on local authorities through the theft of lead from schools and other public buildings and the theft of street signs and manhole covers—but about the dangers to life and limb that metal theft can bring, not least, as has been said, on our railway network. This applies not only to those carrying out such thefts but, much more significantly, to the far greater numbers of those who might suffer not only serious and costly disruption and delay to their journey but could also conceivably be injured or killed in a railway accident attributed in part or in whole to such thefts which damage or put out of action line-side and other equipment crucial to the safety of the network. It is also about the wanton desecration of war memorials which mean so much to so many; it is about damage to our churches, which are part of our heritage as well as places of worship and centres for communities large and small; it is about the premeditated heartlessness, and often brazenness, of those who plan and commit these crimes, which are certainly not spur of the moment acts. Indeed, in the area in which I live, individuals dressed up to look like workmen were stripping the roof of a town hall in broad daylight.
With the rise in the value of metal, metal thefts have increased in number and in value and to many of those involved it has become big business. This Bill cannot, of course, stop people committing such thefts. However, what it can and does do is make it much more difficult to sell on the stolen metal without leaving a clear link back to the perpetrators of the theft, the handlers of the stolen goods or both. The scrap metal industry is the main outlet for stolen metal. It is inadequately regulated, with cash transactions all too often the norm, providing anonymity and a lack of traceability of stolen metals. No records are kept and almost certainly insufficient tax is paid. This Bill will do much to bring to an end the relatively risk-free way that metal thieves have for quickly disposing of stolen property and equally quickly converting it into cash.
Scrap metal dealers are already subject to controls under the Scrap Metal Dealers Act 1964 and the Environmental Protection Act 1990. The LASPO Act 2012 introduced further changes to the regulation of scrap metal dealers, including creating a new offence of buying scrap metal for cash and laying down that a scrap metal dealer must not pay for scrap metal except by a cheque or an electronic transfer of funds. That important but insufficient step began to close the door on transactions being undertaken that left no audit trail to help identify those involved. However, a number of issues still remained to be addressed, including limited powers to enter and inspect unregistered scrap metal dealer sites; inadequate record-keeping of transactions by scrap metal dealers; the inability by local authorities to revoke or vary licences granted to scrap metal dealers; and the fact that the ban on scrap metal dealers paying for metal with cash did not extend to all those who deal with scrap metal.
These issues and others are addressed in this Bill, which seeks to replace the 1964 Act. The Bill extends the offence of buying metal with cash to itinerant metal collectors; it gives new powers for the police and local authorities to enter and inspect sites; it requires all sellers of metal to provide personal identification at the point of sale, which is then recorded by the scrap metal dealer; and gives local authorities the power to revoke or vary a licence where appropriate, as well as the power to turn down unsuitable applicants for a scrap metal dealer licence. However, I want to raise a few points.
Concerns have been expressed that second-hand domestic appliances have been excluded from the Bill and that that creates a significant loophole because it will not be easy to distinguish whether an old appliance that is sold is scrap metal or a second-hand item that might be considered for repair. Secondly, gold and silver have been excluded from the definition of scrap. We have all seen the traders in the high street offering cash for gold. Since, under the Bill, they will continue to be able to offer cash, will they not provide unfair competition for more orthodox operators, as well as a potential ready outlet for quickly converting stolen metal into cash, when the Bill seeks to stop such transactions? Once again, what is the response to that concern?
Thirdly, the Bill extends the offence of buying metal with cash to itinerant metal collectors who, like scrap dealers, will not be allowed to pay for scrap metal except by cheque or by an electronic transfer of funds. However, payment by cheque may not necessarily achieve the desired objective. The dealer gives a cheque to the individual from whom he is purchasing scrap metal. The individual gives it straight back to the dealer, who is also an agent for one of those operators who offer people cash for cheques. Since the cheque the dealer is receiving back is not made out to him and he is acting as an agent for the cash-for-cheques operator, he now gives the individual from whom he is purchasing scrap metal cash equivalent to the value of the cheque. The cheque is then processed through the cash-for-cheques operator, and it could then involve considerable time and resources by the police to trace it back to the dealer and particular transactions. The effect would be very similar to a cash transaction for the potentially stolen scrap metal, in terms of finding an audit trail. Why was it not possible to say that payment for scrap metal had to be through a transfer of funds via the bank accounts of the dealer and the seller, and not leave a potential loophole open through payment by cheque?
Fourthly, local authorities will be managing a greatly enhanced licensing scheme. What is the estimate of the additional costs that this will place on local authorities and will all the additional costs be covered by the licence fee? What is the estimate of the likely level or range of the licence fee in order to cover the anticipated additional costs involved, bearing in mind that a local authority will have to have regard to the guidance issued from time to time by the Secretary of State with the approval of the Treasury? What will the additional workload for local authorities represent in terms of additional full-time posts? Will skills be required to carry out the new, enhanced role that do not currently exist, or do not currently exist to the required extent, within local authorities?
Apart from Clauses 20 and 23, when will the other provisions of the Bill be brought into force? The Explanatory Notes say that a period of at least six months will be required between Royal Assent and commencement,
“to allow licensing authorities to put in place suitable infrastructure to meet the new demands”.
What is this suitable infrastructure and will local authorities be able to recover these apparent start-up costs through the licence fee?
Finally, the minimum period for bringing in the Bill is at least six months. What is the maximum period after Royal Assent that the Secretary of State will allow to elapse before bringing in the provisions of the Bill, which everyone seems to accept are urgently needed? Does the delay after Royal Assent before bringing in the provisions of the Bill mean that the sections of the LASPO Act 2012 on prohibiting cash transactions for scrap metal dealers will be implemented, if they have not already been, and remain in force pending the provisions of the Bill coming into force?
We congratulate and thank the noble Baroness, Lady Browning, for sponsoring this badly needed Bill, which we support. We will do what we can to see that it is passed in good time. We hope that we will not see in this House the kind of antics we saw from some government Back-Benchers in the Commons.