Scrap Metal Dealers Bill

Debate between Richard Ottaway and Philip Davies

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.

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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.

Scrap Metal Dealers Bill

Debate between Richard Ottaway and Philip Davies

Friday 13th July 2012 Commons Chamber

[Richard Ottaway]

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

[Philip Davies (Shipley) (Con)]

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]

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]

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]

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]

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.

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[Philip Davies]

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]

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]

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.