Scrap Metal Dealers Bill

Sam Gyimah Excerpts

Friday 13th July 2012 Commons Chamber

[Richard Ottaway]

Absolutely. It also reinforces my point that, although the police might have knowledge or suspicion of criminal activity, it is hard to prove when there are no records. There is often no way of pinning that criminal activity on the offenders.

My Bill will repeal the Scrap Metal Dealers Act 1964 and addresses the cashless loophole by introducing a comprehensive ban on cash payments for scrap metal, including for mobile collectors and vehicle salvage operators. It is worth noting that when France introduced cashless payments last year, metal theft in Paris fell by 50%. My Bill will also oblige scrap metal dealers to verify the ID of all sellers of metal at the point of sale and keep records of the transaction available for inspection for a period of two years.

This will build on the notable success of Operation Tornado, a voluntary scheme led by the British Transport police under the wing of the national metal theft taskforce. It requires anyone selling scrap metal to dealers to provide photographic proof of ID. The results so far are impressive. The initial pilot scheme was in the north-east, and in the first six months, overall results showed a 50% drop in metal thefts. In the city of Durham, there was a fall of 73%. Operation Tornado is now being rolled out across the country, and we all have high hopes for its continued success.

The key feature of my Bill is the provision, in clauses 1 and 2, that no one may carry on a business as a scrap metal dealer unless they have a licence from their local authority. That will include motor salvage operators. The licence will be valid for three years, and a licence fee will be charged to cover the cost to local authorities of administering the licensing regime and ensuring compliance.

Clause 3 will give local authorities the power to turn down applicants unless they are satisfied that the applicant is a suitable person to carry on business as a scrap metal dealer. Unsuitability may be determined by a range of factors, including a criminal conviction. Clause 4 will give local authorities the power to revoke a licence. The Bill will also give the police and local authorities greater powers to take action against unregistered dealers. It contains powers to enter and inspect, and clause 9 will give the police and local authorities the power to close unlicensed premises with a court order. At long last, we will be able to ensure that any scrap metal dealer, whether mobile, on a site or a motor salvage operator will not be allowed to conduct business without a licence.

[Mr Sam Gyimah (East Surrey) (Con)]

I am listening with interest to my hon. Friend’s comments about the licensing of scrap metal dealers, but I am still at a loss to understand how we can prevent people who steal metal from war memorials—as happened in Lingfield, in my constituency—from selling it. Even a licensed dealer could still buy stolen metal.

[Richard Ottaway]

My hon. Friend makes a key point. The Bill on its own is not a silver bullet. It is part of the overall picture, and it will be necessary to work with the Home Office and the police on its enforcement. The Bill will give the authorities the necessary power to implement a much tougher regime than the one that we have now, which is manifestly not working.

Clause 7 provides for the creation of a single, national publicly available register of all licensed scrap metal dealers, which will be maintained by the Environment Agency. It will be fully transparent and accessible to the public, and will for the first time give a national picture of the industry. That is another feature that I hope will be welcomed.

The current legislation does nothing to stop metal theft. It does nothing to incentivise good trading standards. It excludes mobile collectors from rules on cash payments, and it does nothing to support the law-abiding, legitimate scrap metal dealers. I believe that my Bill will address those woeful shortcomings. The worst breaches of the provisions of my Bill, such as operating as a scrap metal dealer without a licence, trading in cash or failing to keep proper records of dealings, will attract punitive unlimited fines. Many have complained that sentences for metal thieves do not reflect the economic and emotional impact of the crime. That matter will be considered by the Sentencing Council this autumn.

As I have said, the Bill is not a silver bullet; it will not provide all the answers. It is part of a comprehensive plan to address the overall problem. Many questions have been raised about scrap metal exports. Much of that goes through our ports in containers—some legally, some illegally—and intelligence evidence suggests the majority of stolen metals that find their way into those containers have been through scrap metal dealerships first. However, I am pleased to report that excellent work is being done in this area, under the umbrella of the national metal theft taskforce, which I hope will continue to receive financial support from the Government. Analysts from the British Transport police, who co-ordinate the taskforce, have joined forces with the UK Border Agency, the Serious Organised Crime Agency and the container intelligence team at Felixstowe port to help identify and intercept containers carrying stolen metals. The taskforce has also established the force intelligence unit, which brings police and the industry together to function as a central hub for all metal theft intelligence. Work is also under way to design pioneering DNA techniques to improve the traceability of stolen metals.

If I may behave out of character for a moment, I want to applaud the British media, who have been quick to highlight and condemn incidents of scrap metal theft. The stories and campaigns, such as the “lest we forget” campaign by The Sunday Telegraph to protect our war memorials, have ensured the issue is constantly topping the agenda. I also congratulate the War Memorials Trust on its worthy “In Memoriam 2014” campaign, in partnership with the SmartWater Foundation, to protect all memorials in the run-up to the 100th anniversary of world war one. Half of the £6,000 cost to replace the plaques that were stolen from my local Sanderstead war memorial is being met by the trust, and I am delighted to have its support for my Bill. I pay tribute to it for its work.

We need a holistic approach in order to tackle the problem of metal theft. My Bill will sit at the heart of the chain of reform. This is our chance to support the legitimate traders and stamp out the loopholes that are allowing a sinister criminal underworld to grow in strength and in numbers. I have been deeply encouraged by the groundswell of support for my Bill right across society. Private Members’ Bills are notoriously vulnerable to opposition, but I ask the House to give this Bill, and its cause, its unanimous support.