Scrap Metal Dealers Bill

Richard Ottaway Excerpts

Friday 9th November 2012 Commons Chamber

[Philip Davies]

It looks like lazy drafting to me. Certain things should be carried out by district councils and others by county councils. The point of legislation is to deem which is the most appropriate. I would venture, as my hon. Friend the Member for Christchurch has done, that the matter should be dealt with by county councils, but we will see what others think.

Amendment 141 would be significant. With regard to mobile collectors, it would replace the term “regularly engages” with

“engages on more than 300 days in a calendar year”.

This gets at whether mobile collecting is somebody’s full-time occupation. The Bill states that the mobile collector must be regularly engaged in door-to-door sales to be registered, but what constitutes “regularly” is surely open to dispute. My amendment would make sense of that. Does the measure regularise the “Steptoe and Son” people who might be out there? I do not know what the Government and my hon. Friend the Member for Croydon South mean by “regularly”, so some clarity on that would help.

Amendments 145 and 146 relate to the offence of recklessly making a statement after being requested to provide further evidence. It is one thing to have an offence of knowingly making a false statement, but adding the word “recklessly” gets us into dangerous territory. I am not entirely sure what the definition of “reckless” is in this regard. Perhaps the Minister could help, or perhaps my hon. Friend the Member for Christchurch, who is usually an expert in this field, could tell us what “recklessly” means. It would be best to leave the word out and leave it at “knowingly”.

That relates to my amendments in this group. I am not too happy with one or two others, and I intended to talk about those, but given that time is pressing and we have other matters to discuss, I will leave my comments there. I do so in the hope that the Minister and my hon. Friend the Member for Croydon South will accept that my amendments have been tabled in an attempt to help the Bill and provide the scrutiny that it deserves, so that we end up with legislation that we are all happy with—that is the whole point of the Report stage of a Bill.

[Richard Ottaway (Croydon South) (Con)]

I have to confess, having listened to my hon. Friends the Members for Christchurch (Mr Chope) and for Shipley (Philip Davies) for the past hour or two, that I have quite a lot of affection for both of them. The contribution that they make to scrutinising private Members’ Bills should not be ignored. To that extent, they do the House a service. I call them friends in the political sense, and in the opposition years we worked closely together on the 1922 Committee. I do not therefore dismiss their arguments lightly. But given that my hon. Friend the Member for Shipley, in an interview with Materials Recycling World, said that he would not talk out the Bill, I do not want to do his job for him. I shall simply say that I support the new clause moved by the Minister, but I am not persuaded by the force of the arguments for the amendments tabled by my hon. Friends.

[Mr Jeremy Browne]

I commend my hon. Friend the Member for Croydon South (Richard Ottaway) for the brevity of his contribution. I will not match it entirely, but I will be brief. To a degree, I too commend my hon. Friends the Members for Christchurch (Mr Chope) and for Shipley (Philip Davies) on the rigour with which they scrutinise Government and non-Government legislation. I by no means wish to imply that that is an inappropriate role for them to play in the House, but this is a fairly uncontroversial Bill. It has been supported by all parties and there was a collegiate spirit in Committee, where we sought collectively to try to ensure that the Bill is as successful as possible. Some of the amendments tabled by my hon. Friends would not add to the Bill, and I shall give a couple of examples.

The question of whether it was appropriate to include the site manager in the relevant document was discussed at length. The Government have consulted on this issue with relevant authorities and it was felt appropriate to include the site manager, for reasons that Members will understand. The site manager is responsible for managing the site, and so ultimately what happens on the site is for him or her to oversee, so we regard him or her as an appropriate person.

My hon. Friend the Member for Shipley mentioned the period of 300 days for people who collect door to door. In earlier stages of the Bill, we were criticised for being arbitrary about figures, but we have sought to make the legislation workable in practice. It would be very hard to determine precisely which days a person was collecting and which they were not. I think most people would still regard that person as being a full-time metal collector, so we have sought to amend the Bill to work in practice, with the agreement of my hon. Friend the Member for Croydon South.

My hon. Friend the Member for Shipley talked about 28 days’ notice and whether that was an appropriate amount of time. His amendment suggested three months. We do regard 28 days as appropriate, but one can argue for another number. We want the register to be up to date, both with the local authority and the Environment Agency, which is why we want notification of those who have ceased to trade. Therefore, 28 days strikes us as an appropriate figure.

Rather than going on at greater length, not least because my cough is making my voice momentarily fail, I will just say that, as I said at the beginning, the Government new clause and amendments strengthen the Bill introduced by my hon. Friend the Member for Croydon South. The other amendments do not have that effect, so we urge the House to agree to the Government new clause and amendments and reject the others.

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[Richard Ottaway]

I am afraid that I cannot offer much comfort to my hon. Friend the Member for Christchurch (Mr Chope) either. Although I support the Government’s new clause and their amendments, I am afraid that I am not persuaded by the amendments tabled by him and my hon. Friend the Member for Shipley (Philip Davies).

[Mr Jeremy Browne]

I will engage briefly with the points raised by my hon. Friends the Members for Shipley (Philip Davies) and for Christchurch (Mr Chope).

My hon. Friend the Member for Shipley spoke to amendment 66 on financial penalties. Of course, we can always believe that such penalties should be higher or lower, but we believe that those in the Bill are proportionate. He also tabled amendment 73, on proper records, and amendment 74, on the requirement to keep paperwork for three years. A desire to regulate the industry effectively goes to the heart of the Bill. Obviously, we need scrap metal dealers to keep proper, orderly records; otherwise it is not possible for local authorities or the police to check that they are buying and selling the metal that they claim to be buying and selling. We cannot have a Bill in which there is no requirement to keep proper records, because that would mean that we would have to be satisfied with improper, sloppy or inadequate records instead. We are seeking to be consistent and to make the Bill sufficiently onerous in order for it to be effective.

In amendment 66, my hon. Friend seems to be concerned that the fines are too onerous. It is a difficult situation, because my hon. Friend the Member for Christchurch thinks that the Government are too worried about punishing transgressors, whereas my hon. Friend the Member for Shipley seems to have adopted a whole new approach, namely that the Government’s attitude is overly tough and that they fine at a level that is, in his view, inappropriately high. We think that we have struck the right balance.

On amendment 132, I am reliably informed that most metal salvage operators are scrap metal dealers. We do not want two overlapping schemes. The way in which my hon. Friend the Member for Croydon South (Richard Ottaway) has framed the Bill should reduce the regulatory burden on motor salvage operators.

There has been considerable discussion of what constitutes scrap metal and a scrap metal dealer. We are satisfied with the definition in the Bill. It does not specify every single item that could be construed as being scrap metal, but we think that the definition encompasses them, to the satisfaction of my hon. Friend the Member for Enfield North (Nick de Bois). On the difference between old and used, as I understand it, if I have an old car that has reached the end of its life—this is the crucial point—it might be suitable to be turned into scrap metal. Under the definition provided by my hon. Friend the Member for Shipley, if I had bought a car yesterday and had driven it back from the showroom and it was then turned into scrap metal by someone on my behalf, it would also be regarded as scrap metal, but I think that most people would understand the distinction that it would not be old and, therefore, not scrap metal.

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[Philip Davies]

That does not need to be the case. The Government could set out their intention to bring forward a Bill that deals with the issues raised by the right hon. Gentleman, and we could at least give that proper scrutiny. We are heading towards a scenario in which legislation is rushed through without proper scrutiny. I would have thought that the shadow Minister would be in favour of making the Government return to the House and go through a proper legislative process, rather than simply rushing it through. Nothing of what I propose will prevent any of the provisions from being included in the Bill; I just want to ensure that they get proper consideration.

I thought that the ban on cash payments was ill-advised and extremely un-British. If somebody is breaking the law, the illegal part is the crime they are committing, not the method of payment they use. Somebody might go into a newsagent and steal newspapers, but it would be ridiculous to propose banning people from buying newspapers for cash. I do not see the logic; it is a totally un-British approach. There is nothing to stop the Government bringing this legislation back, but we must ensure that it receives proper consideration.

New clause 7 proposes that the Act shall expire within a year, which I think gives the Government plenty of opportunity to bring forward new legislation. If this matter is so important to the Government—they say that it is and I do not doubt that is true—a year is a perfectly long enough time for them to bring forward a proper Bill, including all the measures in this Bill, that can proceed through both Houses of Parliament.

[Richard Ottaway]

I am listening closely to my hon. Friend, and I confess that I agree that some sort of review would be appropriate. I disagree, however, with the assertion that the legislation is being rushed, as it seems to be taking an inordinate amount of time.

Perhaps I may assist my hon. Friend. If the Bill concludes all stages today, including Report and Third Reading, I would be prepared to recommend to the Government—and would seek to persuade them to introduce it in another place—an amendment to clause 15 which would provide for the review that my hon. Friend wants three years after section 1 comes into force. In addition, although new clause 7 provides for a sunset clause after one year, I would seek to persuade the Government to introduce in another place a sunset or expiry clause for five years after section 1 comes into force. I hope my hon. Friend will recognise that that balance would provide for the review he wants but allow the Act time to operate so that an accurate, worthy assessment and review can be made.

[Philip Davies]

I thank my hon. Friend for listening to my case and responding so positively. As it happens, amendment 116 would bring forward the review from five years to three years, and I have also tabled amendments to explore whether we could bring it forward to two years or one. I am grateful to my hon. Friend for his helpful comments and suggestion, and although the expiry date he offers is not nearly as soon as I would wish, I accept the spirit in which it was offered and the principle behind it.

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[Richard Ottaway]

I beg to move, That the Bill be now read the Third Time.

I am grateful to the House for the progress we have made and I am optimistic that we will get a Third Reading in the time available. I have spent a lot of time on this Bill, and the more I have got into it, the more passionate I have become about it. Without it, the principal outlet for stolen metals will go unchecked. Without this Bill, the cash-in-hand, no-questions-asked culture at scrap metal yards, which allows criminals to shift stolen metals and avoid tax, will continue to thrive. The problem of metal theft has spiked in recent years, owing to a sharp rise in world commodity prices. Unscrupulous thieves are growing bolder and more prolific. Hardly a day goes by when we do not hear reports of metal thefts targeting transport systems, telecommunications, energy networks, monuments, memorials or churches. Every constituency has a story to tell. The epidemic is holding ordinary hard-working people to ransom.

When I addressed the House on Second Reading in July, I referred to several devastating examples of metal theft resulting in entire communities being cut off, cancer operations being cancelled, war memorials and burial plaques being defaced, and historic artefacts being lost to us for ever. Since then the incidents have piled up. Today there were media reports of vandals destroying a world war two memorial in Brentwood, just days before Britain honours its heroes on Remembrance Sunday.

The Bill proposes wholesale reform of the scrap metal industry, which is the principal outlet for stolen metal. Significantly, it has the backing of the Royal British Legion, for whose support I am very grateful, the War Memorials Trust and the Church of England, which sees the Bill as a major tool in the fight to prevent the desecration of war memorials. According to The Times this morning, the new Archbishop of Canterbury is a supporter of the Bill, which also has the support of leading organisations that have all suffered from the devastating impact of metal theft. They include Network Rail, BT, the Energy Networks Association, the Institute of Directors, the Federation of Small Businesses, Arts Council England, the Tate galleries, the Henry Moore Foundation, the Local Government Association and the British Transport police. The British Metals Recycling Association—the industry’s only trade association—has also been heavily involved in drafting the Bill. I am extremely grateful to everyone in those organisations who has given me unfailing and unstinting support throughout the Bill’s progress.

I am also grateful to the right hon. Member for Delyn (Mr Hanson) and his Opposition colleagues. I pay tribute to the early work done by the hon. Member for Hyndburn (Graham Jones), who did a lot to pave the way for the passage of this Bill. I am also grateful to the Minister of State, my hon. Friend the Member for Taunton Deane (Mr Browne), who has been unfailing in his support and whose officials throughout have given me advice without hesitation whenever I wanted it.

For too long, the cash-in-hand culture in the scrap metal industry has allowed criminals to ply their trade under the cloak of anonymity. As a result of this largely unregulated £5.6 billion industry—up to £1.5 billion of which thrives tax-free because of a lack of honest record keeping—our transport, energy and telecommunications infrastructure is under constant threat. This is no petty crime. We hear regular reports of metal thefts that cut off power to communities and hospitals, putting people’s lives in danger. Even more sickening are the attacks on churches, crematoria and war memorials. Many tributes will be paid to this nation’s heroes who laid down their lives for this country on Remembrance Sunday. This momentous anniversary falls two days after my Bill is debated in the House, when I will wear my poppy with pride and optimism. For that reason alone, I hope the House will give the Bill a Third Reading.