A ban on using cash to buy metal for recycling is set to threaten the survival of hundreds of legitimate metals recyclers unless it forms part of a broader reform of the Scrap Metal Dealers Act (1964). That’s according to a trade body for the scrap metal sector.
Ian Hetherington, director general of the British Metals Recycling Association (BMRA) said: “BMRA’s smallest members, who make up nearly 30% of our membership, are under real threat of survival as a direct result of new legislation which will ban scrap metal dealers from paying cash for scrap.
“The legislation contains a number of loopholes and weaknesses which will allow scrap metal to continue being traded for cash. It will severely damage those metals recyclers operating within the law and complying with the cash ban as they will lose trade from small businesses and householders – the very customers they rely upon – who will be attracted away by those still buying metal for cash. The resulting closure of these compliant businesses will lead to significant job losses and a drop in recycling rates which goes completely against the Government’s green agenda.”
Mr Hetherington added: “A complete overhaul of the outdated 1964 Scrap Metal Dealers Act would provide the robust framework needed to allow the police and other enforcement agencies to ensure the ban on cash is adhered to whilst protecting legitimate businesses and closing any loopholes.”
According to the BRMA an effective licensing system would ensure that all metals recyclers appear on a single national register, including the itinerant collectors, car breakers and dismantlers and potentially those buying precious metal. All would then be subject to a ban on cash trading and would be required to use CCTV and to keep a proper record of all transactions with photographic identification. With an overhaul of the licensing system, BMRA is calling for a nationally coordinated approach from the police and the Environment Agency with stronger sentencing and appropriate penalties for those stealing metal and those setting out to dispose of it.
Meanwhile, scrap metal thefts are helping to drive sales of plastic products amongst businesses and are also resulting in many making major improvements to the security of their premises according to workplace equipment provider Slingsby.
The company supplies more than 35,000 products across all industries and over the last 12 months has experienced soaring sales of security related products as well as a steep rise in the number of customers specifying products that are not made of metal. Nationally, it’s estimated that 15,000 tonnes of metal was stolen last year and this recently led to the launch of Operation Tornado, which is a voluntary scheme that asks scrap yards to record the details of everyone they buy metal from. The initiative is run by the British Transport Police, British Metals Recycling Association (BMRA), Association of Chief Police Officers and the Home Office.
Lee Wright, Marketing Director of Slingsby, says: “Reports of copper being stolen from church roofs, miles of railway track disappearing, manhole covers vanishing and even plaques being removed from war memorials have all made headlines recently. There’s no doubt Operation Tornado will make it more difficult for criminals to sell stolen metals but because it’s voluntary and only operates in certain parts of the UK this illegal activity will still continue.
“New legislation is currently being considered that that will ban cash payments for scrap metal because at the moment thieves can virtually trade anonymously with scrap yards, and fines for all offences listed under the 1964 Scrap Metal Dealers Act look set to rise in order to deter thieves.”
Lee adds: “However these changes could still be some way off so until then workplaces have no choice but to continue protecting themselves from thieves and as a result we’re seeing sales increasing of all types of security products ranging from dummy cameras through to security fencing. “In addition lots of customers are avoiding metal products and buying plastic alternatives instead across a huge range of products including bins, benches and even signs. We manufacture a lot of these products in-house using our purpose designed plastic moulding facility and we’re currently increasing production to meet this growing demand which looks set to continue unless drastic action is taken to halt the problem.”
The company supplies more than 35,000 workplace products to a full range of industries via its catalogues and website. For more information visit www.slingsby.com
