The new Scrap Metal Dealers Bill, presented by MP Richard Ottaway, has passed its final reading in the House of Commons and is expected to come into effect by Easter, once it receives Royal Assent.

The bill, approved in Parliament yesterday (12 February), proposes a whole-scale reform of the £5.6 billion UK scrap metal industry and aims to combat metal theft crimes in the UK by saving local authorities both time and money in dealing with damage caused by stolen metal such as manhole and drain covers, copper cabling and wiring and lead piping.

If the bill receives Royal Assent, all scrap dealers would have to apply for a mandatory licence from their local authority, which would also have the power to suspend or revoke the licence if any illegal activity is suspected.

Police would also be given greater powers to inspect unlicensed scrap yards and charge those operating them.

One key area of the bill is the removal of a clause that allows ‘itinerant’ traders pay for scrap metal with cash – a loophole that was criticised by dealers when the cash for metal practice was banned for all other scrap metal dealers in December last year.

Other features of the bill include:

• An ‘enhanced’ application process for scrap metal dealers licence and the ability for local authorities to refuse and revoke unsuitable licences
• All metal sellers must provide verifiable ID at point of sale, which is recorded and retained by the dealer;
• Police will have the power by court order to close unlicensed premises;
• ‘Unlimited’ fines for those found breaching the cash ban;
• Establishment of a single national publicly-available register of all scrap metal dealers;
• Motor salvage operators to be brought under the banner of scrap metal dealers;
• Compulsory vehicle and site badging.

‘Significant victory for communities’

Speaking at the passing of the bill at its final reading, MP Richard Ottoway said: “[This] marks a significant victory for communities throughout the country. For too long they have provided rich feeding grounds for opportunistic thieves who know they can get rid of stolen metals at rogue or negligent scrap yards.

“Metal theft is no petty crime. It hits at the heart of our daily lives – grinding trains to a halt, cutting off power supplies to hospitals and other lifelines, stripping roofs off churches and schools at huge public expense.

“Even more sickening are the attacks on our crematoriums and war memorials commemorating the nation’s war dead. It is particularly fitting therefore that this bill will be made law this year, in time for the centenary of the First World War.”

British Metals Recycling Association (BMRA) Director General, Ian Hetherington, also welcomed the final reading, saying: "It is imperative that the Scrap Metal Dealers Bill becomes law as quickly as possible to bring a robust regulatory framework to the metal recycling industry in the fight against metal theft.

“The Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012 has a number of loopholes, such as the exemption of motor vehicle salvage operators and certain itinerant collectors from the ban on cash payments. These exemptions create an uneven playing field which allows criminal activity to continue to thrive at the expense of legitimate businesses.

“The Scrap Metal Dealers Bill proposes to bring an end to these loopholes by implementing tougher licensing and enforcement to eradicate the industry of unscrupulous dealers who act as conduits for stolen metal.”

‘Huge step towards tackling a national problem’

Councils have also welcomed the progression of the bill, with Councillor Mehboob Khan, Chairman of the Local Government Association's (LGA) Safer and Stronger Communities Board, said: "This is excellent news for councils up and down the country who have suffered at the hands of unscrupulous metal thieves. The passing of this important bill shows ministers have listened to the LGA and others who have long argued that action must be taken to tackle this blight on our communities. Thefts of scrap metal have been spiralling out of control, and this has been in no small part down to the lack of adequate legislation for regulating scrap yards.

"This will be a huge step towards tackling a national problem which has cost the country hundreds of millions of pounds and caused chaos, disruption and heartache for millions. By supporting Richard Ottaway's Bill, MPs of all political parties have recognised what a major issue this is.

"Councils have long been clear that we need a comprehensive and modern system for running the metal recycling industry, with a proper licensing system to hold scrapyards to account.

"Now that the bill has passed through Parliament, we look forward to working with the Home Office and councils to make sure the system is up and running as quickly as possible. Communities up and down the country will be breathing a sigh of relief that parliamentarians have recognised the seriousness of this issue and are prepared to act to make it easier for councils and the police to both prevent and tackle this heinous activity."

Read the Scrap Metal Dealers Bill.