Legislation banning all cash transactions for metal at recycling yards came into effect this week (3 December), with scrap metal dealers now having to pay for metal by electronic payment or cheque and keep transaction records for every deal they make.

Anyone caught disobeying the new legislation can now be found guilty of illegal trade. The upper limit of fines for scrap metal recyclers found to be breaking the law or the conditions of their licenses has also been removed.

The British Transport Police (BTP) has said that it hopes that the Amendments to the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act will end what it describes as the ‘cash-in-hand, no questions asked’ culture that surrounds scrap metal dealing.

BTP Deputy Chief Constable and Association of Chief Police Officers lead for metal theft Paul Crowther welcomed the legislation, saying: “Despite recent reductions in offending, metal theft remains a serious threat to the infrastructure of Great Britain and we will only make a real difference if we continue to take positive action in conjunction with strengthened legislation.”

Saying that the previous ‘outdated’ legislation had allowed ‘metal thieves and unscrupulous metal recyclers’ to engage in criminal activity, Crowther added that the new laws will help curb the acceptance of stolen metal from undisclosed resources.

“Changes to the LASPO Act have outlawed all cash transactions at metal recycling yards across England and Wales and there has been a significant increase in fines for those dealers who fail to abide by the rules”, he said.

“These measures will seriously curtail the market for stolen metal as there will now be a clear audit trail back to those bringing commodities into recycling yards and severe sanctions for those who step out of line.”

According to the BTP, 2008 saw a year-on-year rise by four per cent in live cable offences and around 30 per cent in non-live cable offences. Falling metal prices towards the end of 2008 corresponded to a reduction in the frequency of offences. In 2010 a new record of just under 300 offences was recorded.

BTP credits the voluntary scheme ‘Operation Tornado’ for playing a major part in removing the relative anonymity of scrap metal thieves.

Deputy Chief Constable Crowther added: “The step forward in legislation is welcome and significant, but will not work in isolation. Industry, police and other agencies must continue to work together to enforce the new legislation, support further modernisation of the law and take action against those criminals who continue to target the very infrastructure we have all come to rely upon.”

In November, UK scrap metal dealers and metal recyclers sent a letter with 180 signatures to the Home Office, highlighting their concerns about the new law. They criticised the new legislation for being ‘unclear’, and felt that its aims were ‘unrealistic’. The group, fronted by One Stop Recycling, also suggested that small and medium-sized businesses had not been adequately consulted and threatened legal action to challenge the legislation.

The challenge has now thrown by the High Court, after reports that the court had not wanted to ‘interfere’ in government decisions.

Read more about the details of the new offence.