Scrap Metal Dealers Bill Debate

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Department: Home Office

Scrap Metal Dealers Bill

Philip Davies Excerpts
Friday 13th July 2012

(11 years, 9 months ago)

Commons Chamber
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Richard Ottaway Portrait Richard Ottaway
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My hon. Friend makes a powerful point. Indeed, I will come to the question of enforcement a bit later.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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I very much agree with my hon. Friend that the low risk of being caught is driving much of this theft. What assessment has he made of the use of SmartWater? Where it has been used by churches, Network Rail or war memorials—indeed, SmartWater provides the product to war memorials free of charge—the amount of theft has gone down considerably, because the chance of being caught goes up considerably.

Richard Ottaway Portrait Richard Ottaway
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My hon. Friend makes a good point. Putting SmartWater on to cables and using a UV light on materials that come into yards is acting as a deterrent. However, such is the nature of market forces that people are already beginning to find a way round that. Technology has to move on and continue to provide a deterrent—again, a point I shall come to in a minute.

The escalating problem of scrap metal theft results from the confluence of two things: the global rise in commodity prices over recent years and a badly regulated industry, which my Bill will tackle. It proposes a tough but fair regime for our scrap metal industry. It will support legitimate dealers and penalise the parasites who profit from the things we hold most sacred.

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Philip Davies Portrait Philip Davies (Shipley) (Con)
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May I begin by apologising to my hon. Friend the Member for Croydon South (Richard Ottaway), to other hon. Members and indeed to you, Mr Speaker, for the fact that a long-standing engagement in Yorkshire this afternoon, which was in place before I knew the dates for private Members’ Bills—all hon. Members know my interest in those—means that I will have to depart relatively hastily? I apologise to those who will speak later, because that is not a discourtesy I would normally do people. I assure everyone that I will read the record of the contributions that come later in the debate with great interest, but I wanted to apologise in advance. No discourtesy is meant to anybody by my leaving early.

I congratulate my hon. Friend on his success in the ballot and on raising a subject that, as the hon. Member for Walsall North (Mr Winnick) made clear, is without doubt a major problem in this country that affects an awful lot of people. We can all agree that there is a problem, although we may not necessarily agree on the most appropriate solution. The advantage of the fact that I have to depart early is that I will be prevented from going on at as much length as I might otherwise have done, which I am sure will cause great pleasure to all involved. I just wanted to take the opportunity to set out some of my concerns about the Bill, notwithstanding the fact that we all agree about the problem. I very much hope that some of my concerns may be taken into account in Committee and, if not then, on Report, as we all want to see an approach that will be effective in tackling the problem.

There clearly is a major problem that we need to tackle. Metal theft has an unquantifiable cost to society. Let us consider, for example, the danger to people in hospitals if there is a loss of power because of the theft of some key metal, as my hon. Friend the Member for Croydon South made clear in his opening remarks; the disconnection of telephone services, which means that people can be cut off from the emergency services; and the theft of such pivotal things as the dry riser valves used to put out fires. Of course we are also talking about the sentimental value of numerous world war statues that have been remorselessly ripped down where they have stood for decades.

Matthew Offord Portrait Dr Matthew Offord (Hendon) (Con)
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I join in the congratulations to my hon. Friend the Member for Croydon South (Richard Ottaway) on introducing the Bill. My hon. Friend the Member for Shipley (Philip Davies) has rightly identified some of the problems caused by that metal theft, but there is a further problem. Many churches in my constituency have had lead stripped from their roofs, and the Day’s and Atkinson’s Almshouse Charity has had lead stolen from its roofs on four occasions. On only one of those occasions was the theft “successful”, as on the three other occasions all the thieves did was cause damage, which then gives a cost to the almshouses. Does my hon. Friend agree that the problem is not only metal theft itself, but the difficulties caused by damage to properties from unsuccessful thefts?

Philip Davies Portrait Philip Davies
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My hon. Friend is absolutely right. A considerable cost is incurred by many organisations and by society where local communities have been left without various services and where organisations that do fantastic work in those communities are compromised in the amount they can do for them because of the cost of the theft. The Association of British Insurers has claimed that this is costing £1 million a week in insurance claims and that 300 tonnes of metal is stolen every week, which is the equivalent of 300 cars. The ABI has also said that UK metal thefts have doubled in the past five years, to about 1,000 reported incidents a week.

Metal thefts are also a problem in my constituency. In April, there was a spate of thefts of brass door handles. Inspector Tatham of the Shipley neighbourhood policing team told my local paper:

“We have had a number of reports of brass theft from homes near the A650 in Shipley so far this month and are investigating the matter. The thieves appear to be targeting older properties with brass door handles”.

In addition, 28 iron cellar grates dating back to Victorian times were stolen last year from the world heritage site at Saltaire in my constituency. Metal theft also often takes place in very dangerous locations; my hon. Friend the Member for Croydon South made the point that at least 10 people died in the past year while attempting to steal metal on railway lines. So many costs, both financial and human, are involved in metal theft, which is why I congratulate my hon. Friend on bringing this matter to the House.

Let me deal with the current position under the Scrap Metal Dealers Act 1964. Special regulations have applied to scrap metal dealers since at least the late 1800s in order to help tackle the theft of metal. The 1964 Act places specific controls on scrap metal dealers to discourage the trade in stolen metal; these are in addition to the general requirements under the Environmental Protection Act 1990. The controls under the 1964 Act include the fact that dealers have to register with the local authority and local authorities have to maintain a list of dealers. Dealers are required to keep a variety of records, including details of the types of metal received, of the processing of that metal and of the names of those disposing of metal at their site. A failure to meet the requirements of the 1964 Act may lead to a fine of up to £1,000.

The Government have also set up the metal theft taskforce. On 29 November last year the Chancellor announced £5 million of Treasury funding to establish a multi-agency national metal theft taskforce, to be led by the British Transport police. The Home Office has said that the taskforce will

“develop intelligence, coordinate activity and target and disrupt criminal networks—both the thieves and also the criminal market, including rogue elements of the scrap metal industry.”

Last June, we also had the waste review, which was set up to consider available penalties and sentencing guidelines for scrap metal theft and there is certainly scope for increasing the penalties for and sentencing of people involved in these crimes. The Select Committee on Transport produced a report in January that made a number of recommendations for reform, including

“introducing a new offence of aggravated trespass on the railways to increase the penalties associated with cable theft.”

As my hon. Friend the Member for Croydon South said, we also have the Legal Aid, Sentencing and Punishment of Offenders Act 2012, and last minute amendments were introduced to the Bill to make it illegal for scrap metal dealers to accept cash for transactions. I was very nervous about that. In principle, it seemed to me to be perhaps a step too far, but now we have a new Bill proposed seemingly only five minutes after the Legal Aid, Sentencing and Punishment of Offenders Act was passed. My understanding is that the new measures will not commence until this autumn, so we seem already to be discussing a new law to replace one that has not yet even come into force. I wonder about the sense in this House introducing new legislation when the previous legislation has not even come into play.

The Bill repeals the 1964 Act and replaces it with legislation that empowers local authorities with a more robust and, I am sure my hon. Friend would say, more enforceable licence regime for all those who deal and collect scrap metal. The key features are: any individual or business who carries out business as a scrap metal dealer must complete an enhanced application process to get a licence; local authorities can refuse unsuitable applicants and have the power to revoke licences; all sellers of metal must provide verifiable ID at the point of sale, which is recorded and retained by the dealer; the cashless offence will apply to all scrap metal dealers without exception, including those who conduct house-to-house collections, and although there are a few concerns about how to protect people selling scrap metal at their house and to ensure that they get proper payment for their goods, I am sure that we can discuss that later; the police will have the power by court order to close unlicensed premises; a single national and publicly available register of all scrap metal dealers will be published; and the definition of a scrap metal dealer will include motor salvage operators, bringing that licensing scheme within one new scrap metal licensing regime. In a nutshell, the Bill seems to be suggesting an awful lot of new regulations and new offences. We need to determine not the intention behind them or how well meaning they are, but how effective they will be in tackling a problem that we all agree must be tackled.

It seems to me that a real problem has been identified with the Bill.

Richard Ottaway Portrait Richard Ottaway
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I am listening to my hon. Friend with close interest, but, on his last point about our introducing a lot more regulations, in truth we already have a lot of regulation and it is not working. We are reforming the existing regulation rather than bringing in new regulation.

Philip Davies Portrait Philip Davies
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I agree with my hon. Friend, but we might have drawn a slightly different conclusion from the point on which we agree. My point would be that we do indeed have a lot of regulation for scrap metal, as the 1964 Act includes quite a bit of it, but, as he has identified, it has not worked and is not working. If regulating the industry has not worked, I am not entirely sure that the solution is even more regulation. I am not entirely sure where the evidence is that suggests that solution and that is the nub of my concern.

It seems to me that the only solution proposed to solve the problem is regulation, regulation, regulation. I wonder whether other measures could be a bit more successful, such as SmartWater, which I mentioned earlier and which is already having a great effect in reducing theft. Not only does it help to bring people to justice, but it acts as a deterrent to stealing the metal in the first place. Another measure might involve increasing the sentences for people who are caught. If we had more robust penalties and sentencing for this crime and if we sent people to prison and kept them there longer, that would have a much more beneficial effect on the local community and metal theft than simply tackling the scrap metal dealers.

Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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My hon. Friend is making a powerful point. However, although his points about stronger penalties for those who cause the crime and the deterrents are all valid, people only steal to get money and the easiest way for them to get money is to get cash. If we remove cash from the equation and make the process transparent, so that they have to go through legal channels, that will be the most powerful deterrent in ensuring that people are not minded to steal metal in the first place. Does he agree?

Philip Davies Portrait Philip Davies
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I understand my hon. Friend’s point and she might well be right. Time will tell. I have no doubt that my hon. Friend the Member for Croydon South will be successful with his Bill and we will see, but I am not necessarily as confident as my hon. Friend the Member for Suffolk Coastal (Dr Coffey) that that will happen. The criminals who are engaged in such illegal activity are clearly making a lot of money from it, and I do not believe that on the back of this Bill—my hon. Friend the Member for Croydon South made it clear that he did not see it as a silver bullet—those people will pack up their equipment and say, “It was nice while it lasted, but now we’ll all move on to knitting,” or to some other activity of which we would all approve. I suspect that they will continue with their criminal activity and will merely pursue it in a different way. It will probably go underground and through illegitimate businesses rather than legitimate scrap metal dealerships.

We should be wary of the idea that regulating businesses will solve the problem. I have always taken what might be deemed an old-fashioned view of such matters and if someone is going out and committing the crime of stealing metal, we should be clamping down on the people who are going out and stealing the metal. The Bill seems to be chiefly aimed at clamping down on the metal dealers further down the line. The people going out and stealing the metal are not being targeted as much as the dealers.

Lord Barwell Portrait Gavin Barwell (Croydon Central) (Con)
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I completely agree with my hon. Friend that we should be clamping down on the people who are stealing the plaques, the memorials and the cabling, but in the case of my own dad’s plaque, the dealer who bought it had bought tens of thousands of plaques and war memorials from across south London. Does my hon. Friend not agree that as well as going after the people who are stealing the items, we should come down like a ton of bricks on the people who know what they are buying and should not let them continue to operate in the industry? That is what the Bill would achieve.

Philip Davies Portrait Philip Davies
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I have a great deal of sympathy for what my hon. Friend says and I think the whole House will have sympathy for what happened and for the distress it must have caused him. Of course, we all want to clamp down on not only the people who steal but on the people who knowingly trade in such metal. I do not think that anybody would deny that, but the proposals in the Bill do not just clamp down on the people involved in the theft or in the trading of stolen metal. The Bill is clamping down on everybody. In effect, it states that everybody involved in the trade is a criminal, that we will treat them all as criminals and that we will clamp down on them all. My point is that it is rather unfair to categorise a whole industry as involved in illegality. In every industry, there are good people and bad people and the Bill imposes extra costs and burdens on the good as well as the bad.

Caroline Nokes Portrait Caroline Nokes
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I should like to draw on the experience of one of the largest scrap metal dealers, operating on the edge of my constituency. It makes the point that it wants cash to be removed from transactions, so that the business does not have the additional risk of having to carry large amounts of cash daily, and so that customers do not come to it expecting to get cash. Its argument is that that would make its business more secure and more economically efficient.

Philip Davies Portrait Philip Davies
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That may well be the case. Of course, there is no compulsion on anybody to make cash transactions. If a business does not want to trade in cash, it is perfectly at liberty not to do so.

The Government may well have changed their tune slightly on the subject. Their views on reform were recorded in their written evidence to the Transport Committee in November last year, in which they said that

“Against that”—

that is, calls for action on the issue of scrap metal theft through regulation—

“it would be necessary to consider carefully the additional burden which new regulation might put on legitimate businesses, and the extent to which the disposal of stolen metal might still continue on an illegal basis. Given the Government’s general aim to reduce and simplify regulation, there would need to be a strong case made to justify any new regulation.”

The Government were wise to sound a note of caution, as regulation is not always the way forward, yet more regulation is proposed. I am not entirely sure that it is entirely justified. More importantly, I am not entirely convinced that it will stop metal theft. We may end up with a lose-lose situation: the regulation will punish not just the bad scrap metal dealers, but all of them.

David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
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My hon. Friend makes a compelling case. He may have seen the British Metals Recycling Association’s briefing on the Bill. Somewhat surprisingly, perhaps, it seems to be in favour of funding the Bill and its provisions through “a small licence fee”. Does he share my concern that, often, what starts off as a small licence fee soon becomes a very large licence fee?

Philip Davies Portrait Philip Davies
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My hon. Friend is absolutely right to make that point. We have seen many examples where a local authority is given a small amount of power, and, before we know it, it is expanding and empire-building at every possible opportunity, and increasing costs on a salami-slice basis. Before we know it, an industry that thought it worth paying a small cost to deal with a problem finds that there is still a big problem, but its costs have gone up hugely and show no sign of abating.

Richard Ottaway Portrait Richard Ottaway
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I am grateful to my hon. Friend for giving way again. Before this argument runs away with itself, I should confirm to the House that although the local authority would have the power to set the licence fee, a cap will be set in regulations by the Home Office.

Philip Davies Portrait Philip Davies
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I am grateful for that clarification. Let us just hope that we always have sensible people in the Home Office. Clearly, we can have confidence at the moment: I see the Under-Secretary of State for the Home Department, my hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), is on the Front Bench. I do not want to alarm him unduly about his career prospects, but Ministers come and go, and although we may have confidence in this Minister, I am not sure that I share the faith of my hon. Friend the Member for Croydon South that every future Home Office Minister, whatever their party, will show the same wisdom as this Minister in setting the regulations.

As I was saying, the Bill would affect legitimate businesses. It is worth showing the other side of the industry, because there are good operators in it, as some newspaper stories show; unlike my hon. Friend, I am a big fan of the media, so I am sure that these stories are true. Let me set out one case involving a scrap metal dealer. I am sure that this happens time and again; I am picking out just one example, as the House would not want me to go through every single newspaper report of this kind. I use this story as an illustration. A scrap metal dealer called the police when he was asked to purchase a war memorial from offenders. When Lana Jane Clitheroe and Paul David Kelly pleaded guilty to stealing from a war memorial in St Mary’s church on Lewisham High street, the district judge, Julia Newton from Bromley magistrates court, said in her sentencing remarks:

“A scrap metal dealer was approached by the Defendants; he very quickly realised what the item was and refused to accept it.”

He alerted the police to the problem, so that they were able to catch the offenders.

Many legitimate scrap metal dealers are part of the solution to the problem. They do not want to be involved in any illegal activity and to take things that have been stolen, and they play a crucial role in alerting the authorities to the problem. I feel nervous about saying to the scrap metal dealer who was involved in that case, “I will treat you as if you are potentially involved in criminal activity, and put on you a huge new burden and cost.” What has that person done wrong? What has he done to deserve that? He is part of the solution, not the problem.

Another scrap metal dealer

“donated £21,000 to replace metal plaques stolen from a war memorial in south London.

Fourteen bronze plaques bearing the names of 243 World War I servicemen were stolen from Carshalton war memorial in Sutton in September 2011.”

The scrap metal dealer

“said he was as ‘outraged as everyone else’ that it had been ‘plundered’.”

These are good people—people whom we should be trying to help, and whose side we should be on. The Bill would impose on those people huge burdens and extra costs. What have they done to deserve those extra burdens and costs? Nothing, as far as I can see. We are castigating a whole industry because of some people who are operating illegitimately in that industry. My solution is to go after the criminals. Let us pursue criminals, not a whole industry, which includes some very good people who are not criminals at all.

On bringing offenders to justice, we can use the Theft Act 1968 to charge unscrupulous scrap metal dealers with handling stolen goods. There is already a law with which to tackle the problem of people who handle stolen goods. In addition to using all the existing scrap metal legislation, we should use the Theft Act to prosecute those who accept stolen scrap metal and pass it on. It states:

“(1) A person handles stolen goods if (otherwise than in the course of the stealing) knowing or believing them to be stolen goods he dishonestly receives the goods, or dishonestly undertakes or assists in their retention, removal, disposal or realisation by or for the benefit of another person, or if he arranges to do so.

(2) A person guilty of handling stolen goods shall on conviction on indictment be liable to imprisonment for a term not exceeding fourteen years.”

That is already on the statute book. If a scrap metal dealer is found guilty of handling stolen goods—the definition in the Theft Act makes it perfectly clear that someone handling stolen metal is guilty of handling stolen goods—it is already in statute that they can be sent to prison for a term not exceeding 14 years.

If we actually gave proper sentences, and sentencing guidance was strengthened, so that the provisions in the Theft Act were invoked and a few 10-year-plus sentences were handed down by the courts to these people, we would find a vast drop in the number of scrap metal dealers handling stolen goods, without imposing any kind of extra licensing regime, bureaucracy, or cost, and without giving local authorities more police-like powers to interfere in every nook and cranny of people’s businesses. Let us just start handing down some proper sentences to these people; we will find that some people go legitimate very quickly indeed.

If someone walks off the street into a scrap metal dealer with a chunk of railway line in their hand, or a £500,000 statue or a huge great war memorial in a van, and the scrap metal dealer accepts it and pays them a few pounds for it without any questions asked, the scrap metal dealer should be prosecuted under the Theft Act. If the police and the Crown Prosecution Service cannot get a conviction for that, it says more about our criminal justice system than about anything else.

David Nuttall Portrait Mr Nuttall
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Has my hon. Friend heard anything in the debate so far or read anything in the Bill that would give him any confidence that the new regime, once it came into force, would be any more capable of being enforced and securing convictions than the present one?

Philip Davies Portrait Philip Davies
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No. That is part of the problem. My hon. Friend makes a good point. When politicians are faced with a problem, their solution always seems to incorporate two ingredients. The first is that they must be seen to be doing something. It is the bane of all politicians. The second ingredient is that what they propose must not offend anybody. As long as a politician has a solution that looks as though they are doing something and it does not offend anybody, whether it does any good or not, they will go down that road every time. Rather than looking as though we are doing something and being tough, I would like us to spend a little more time looking at whether the proposed course of action will work and whether it is absolutely necessary. I am not entirely sure that the Bill passes that test.

On offender profiles, according to the Transport Committee in its 14th report of January this year, which was on cable theft from railways,

“Perpetrators can be broadly split into two groups; small-scale, local offenders and organised crime groups. We heard from the BTP”—

the British Transport Police—

“that local criminals were responsible for the majority of thefts from the railway, these being ‘opportunist but nonetheless professional criminals’…and that up to 80% of those arrested for metal theft have previous convictions for similar crimes.”

Here we hit the problem: 80% of the people caught for metal theft have previous convictions for metal theft. The police have done their bit. Under the current regulatory regime, the police have got these people, and what happens? The perpetrators get a derisory sentence from the courts and they are back out on the streets stealing metal again in five minutes flat. So it is not the regulation, but the sentencing of these offenders that is the problem.

Metal theft has recently been included in the serious organised crime strategy. The British Transport Police welcomed this but noted that a maximum of only 30% of cable thefts involved organised criminal gangs. Chief Inspector Carl Burkey, of Airedale and North Bradford police, which is my local police division, said in March this year:

“We have been pleased to take part with partners and reinforce the message locally that officers are working hard to frustrate the sale of stolen metal in Airedale and North Bradford.

Metal theft is a crime which can be life threatening to thieves and seriously disrupt commuters when it affects rail services, and it is important that scrap dealers remain vigilant when offered stolen metal. We will…work closely with all partners and would urge anyone who has information about metal theft to contact ourselves or Crimestoppers.”

One of the main solutions to the problem is for members of the community to be the eyes and ears on the ground—that is what my police chief inspector said—and to report any suspicious activity that they see. When that happens, the police are quite successful in catching the perpetrators.

We come back to sentencing. Metal theft and handling should be seen as an aggravating part of the sentence, taking into account the disruption or the severe sentimental loss that such crimes cause, particularly in the case of my hon. Friend the Member for Croydon Central (Gavin Barwell). I referred earlier to District Judge Julia Newton from Bromley magistrates court when she sentenced a pair who had stolen a war memorial in Lewisham. She also said:

“The war memorial is described by Father Scott Anderson, the Vicar of St Mary’s Church. He believes the memorial plaque had been in the church since approximately 1920-1925. The plaque displayed the names of some of those who had fallen in the First World War. It is described as being a large and heavy plaque, approximately 1.25 metres high and 1.75 metres tall. The impact of the loss of the plaque is described by Father Anderson. The stolen plaque is expressed to be invaluable to both the Church and the families whose relatives’ names appear on it. He cannot even estimate the value. He describes the feeling amongst the members of the Church and Local Community as being both ‘in shock and saddened.’

Those named on the memorial are remembered by family, relatives and fellow countrymen. The desecration of the memorial will be seen by many as an affront. The historic value of the plaque is incalculable.

The seriousness of this offence is determined not only by the culpability of the Defendants, but also the harm caused. This offence was committed without a thought for the impact that their actions would have on individuals or the wider community. In assessing the harm caused, it is not simply the monetary loss in replacing the memorial which is to be taken into consideration, but the public feeling of many as described by Father Anderson.”

The judge took all that into account and said that the risk of re-offending was assessed as high. She said that she took the view that the offence was so serious that only a custodial sentence was appropriate. Bearing all these factors in mind, the sentence of the court would have been 180 days in custody, but because the offenders had pleaded guilty, it would be reduced by one third. The sentence would be 120 days imprisonment. That seems to rank high in terms of the sentences handed down by the court for this type of crime. I therefore praise the judge for bearing all those circumstances in mind as aggravating factors when she came to sentence the offenders. I encourage judges to do more of that, so that sentences are more of a deterrent.

David Nuttall Portrait Mr Nuttall
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My hon. Friend’s expertise in these matters is well known. Perhaps he will be able to confirm that although a sentence of 120 days imprisonment was handed down, it is highly unlikely that the criminals would have served anywhere near 120 days in prison.

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Philip Davies Portrait Philip Davies
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Sadly, my hon. Friend is right. One of the great outrages of the Labour Government was that they introduced a law which meant that everybody, no matter how well or badly they behaved themselves, had to be released from prison halfway through their prison sentence. It was not that they became eligible for release halfway through their sentence; they had to be released halfway through their sentence. For some of the lower-end offences, people can be released much earlier than halfway through the sentence.

According to the Ministry of Justice, as I am sure my hon. Friend the Minister will confirm, somebody sentenced to six months in prison can be let out within six weeks, which is a scandal. Somebody sentenced to prison for 12 months can be released after three months, and somebody sent to prison for two years can be released after seven and a half months. This is what the Government should be focusing on. Let us have proper sentences handed out by the court. When people who are involved in this despicable crime are sent to prison, let us keep them in prison for the length of the sentence that the court handed out, rather than letting them back out into the community in five minutes flat to carry on from where they left off. If we were to go down that route, it would have a much greater impact on the level of crimes such as metal theft.

Technology will be a huge tool in counteracting such crime. I mentioned SmartWater earlier. My hon. Friend the Member for Croydon South also praised it in glowing terms. The SmartWater Foundation, which is providing it free of charge for all war memorials, is to be highly commended. Network Rail experienced a huge reduction in metal theft when it used SmartWater. To illustrate the point, the SmartWater technology is so good that different parts of the track can be identified by the type of water on it, so when somebody turns up at a scrap dealership with metal that is covered by SmartWater, not only can it be identified as stolen, but it is possible to identify exactly where it has been stolen from.

This technology is one of the main reasons why we should be hopeful for the future and about our ability to tackle the crime of metal theft. Rather than using it just to catch people, SmartWater and the police have been working together to use it more as a deterrent. They take the ultraviolet equipment to the local scrap metal dealerships, put up signage saying that anything that has SmartWater on it will not be accepted at the dealership, and that all scrap metal is tested. There is plenty of evidence to show that when SmartWater is used, scrap metal dealers will not accept stolen metal because they know what the consequences will be if they are caught with it on their premises.

One of the most telling things that my hon. Friend said in his opening remarks was that the low chance of being caught was driving the crime. We must use SmartWater much more. I know from a question to the Church Commissioners last month that the Church of England is now using SmartWater to cover many of its roofs, and we know that it is to be used on war memorials. I think that we should be encouraging as many people as possible to use SmartWater to deal with this problem at a reasonably low cost.

My hon. Friend the Member for Bury North (Mr Nuttall) referred to the British Metals Recycling Association, which he said—I think he is right—appears to be in favour of the Bill, but some of the things it has said in the past have actually made a great deal of sense. It has identified illegal scrap metal sites as the main problem and called for better enforcement of existing legislation by the police and the Environment Agency to close illegal sites. If that is right—I have no reason to think otherwise—and illegal scrap metal sites are the main problem, the introduction of an awful lot of new regulation and new costs for legal scrap metal dealerships would not only make no difference to the problem, but be likely to make it worse. The only possible impact would be to encourage some of the legitimate scrap metal dealers, who do not want the cost of the regulation to become illegal. The danger is that some of the Bill’s provisions might inadvertently make the problem worse.

The British Metals Recycling Association has previously expressed concern that any move towards cashless transactions could simply disadvantage small, legal and well-run scrap sites, unless there was

“effective enforcement against unregulated operators”.

Robin Walker Portrait Mr Robin Walker
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My hon. Friend is clearly a champion of free markets, but he must understand that in order for them to work properly they need a level playing field. Is not one of the risks that the current changes in the Legal Aid, Sentencing and Punishment of Offenders Act 2012 will make it difficult for small operators if the unlicensed operators are able to accept cash and they are not? Is not that why the proposed change in this Bill to make sure that all operators are subject to the cash ban is so important? It would provide the level playing field that will allow a proper free market.

Philip Davies Portrait Philip Davies
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I absolutely take my hon. Friend’s point, which he makes characteristically well. The issue is whether we will end up with a level playing field. I do not doubt that we will end up with a level playing field for all legitimate scrap metal dealers—that is clearly the case—but, according to the British Metals Recycling Association, much of the problem is not with the legal dealers, but with the illegal ones, so we do not have a level playing field and all the Bill would do is further uneven it by making it even harder for legitimate sites to compete with illegal ones.

The key point—this is where we might come to some agreement—is that this could work, as the British Metals Recycling Association has stated, only if there were

“effective enforcement against unregulated operators”.

My concern is that we would have an awful lot of enforcement against regulated operators, which is what the Bill would do. It is about targeting those who are already regulated and piling more regulation on them, but that will not help to tackle the unregulated ones.

David Winnick Portrait Mr Winnick
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The hon. Gentleman certainly represents the most progressive part of the 18th century, but will he accept that if the organisations involved with this problem—the British Transport police, the British Metals Recycling Association, the Association of Train Operating Companies, the police generally and local authorities—believe that this is necessary and support the measure, should we not take on board what they say?

Philip Davies Portrait Philip Davies
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I am rather wrapped up in wondering whether the hon. Gentleman’s first comment was a compliment or an insult; I will go away and think about it, but perhaps he will make it clear. I was rather startled by his second point, because I think it was the first time in all the years I have been listening to him in this House that he has seemed to have made the point that if the police think something is a good idea this House should deliver what they want. I remember when he sat on the Government Benches in the last Parliament and talked about anti-terrorist legislation, for example. He was a great champion of the view that, “Well of course the police want all these powers, but it is our job to resist giving them to them.” As someone who is generally a big fan of supporting the police, I welcome his conversion to a more authoritarian approach to crime and law and order, but it is rather uncharacteristic.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I think we are getting away from licensing. Mr Davies, I think you are desperate to get back to where you were and I am sure that you do not want to be distracted.

Philip Davies Portrait Philip Davies
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As ever, Mr Deputy Speaker, you read me like a book. I was just thinking about how I did not want to be distracted by the hon. Gentleman, but I have every confidence that his next intervention will put us back on track.

David Winnick Portrait Mr Winnick
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I was not aware that I was off track last time. If it were simply the police who were saying that these measures were necessary, the hon. Gentleman, whom I would not dream of insulting, could say that the argument would not necessarily be valid, but they are one of a number of bodies that want this. What I am saying is that those who have to try to deal with the problem—I mentioned local authorities and the local police in the Walsall borough—all seem to be of the same view that it is necessary to strengthen the law.

Philip Davies Portrait Philip Davies
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I am sure that the police are reassured to know that the hon. Gentleman is not wholeheartedly behind them, but I am sure that they still welcome his move in their direction on this issue. As I made clear just before you arrived in the Chair, Mr Deputy Speaker, I must press on as I have to go to an engagement in Yorkshire, which will be a huge relief to all Members in the Chamber.

Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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Before my hon. Friend concludes his opening remarks, will he confirm that the real question the House has to decide on this afternoon is whether this is being done because the Government have to be seen to be doing something or because it will actually move the issue forward?

Philip Davies Portrait Philip Davies
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My hon. Friend is right.

In summary—I reiterate that I mean no discourtesy to anyone by having to leave pretty smartly after finishing speaking and hope that no offence is taken—we all agree that there is a problem and that this is a terrible crime that needs to be tackled robustly. What we have to consider today is whether the Bill will actually bring about the kind of change we want to see that will stop the outrages that we have all seen in our local communities. I am not entirely persuaded.

I commend my hon. Friend the Member for Croydon South for raising the issue and know that his intentions are absolutely honourable. In many respects, I hope that I am wrong, that he is right and that these changes will bring about the difference we all want to see, but I am not necessarily convinced. It is very easy on these occasions for us all to say, “This is absolutely marvellous, so let’s rush headlong into this and go along with it.” It is the duty of this House occasionally to pause, think and ask, “Are we absolutely convinced that this will do what we hope it will do?”

I hope that the Bill gets a fair hearing today on Second Reading and do not intend to cause my hon. Friend any problems in that respect, but I hope that he will think about it so that in Committee and on Report we can look again at some of the issues and think about whether we can do something that will make a real difference, not just something that sounds good, looks good, reads well in the local media but which, in a few years’ time, will not have sorted out the problem that we need to tackle.