The new Scrap Metal Dealers Bill, presented by MP Richard Ottaway, has passed its third reading in the House of Commons.

The bill, which was introduced by Ottaway to help combat metal theft crimes in the UK, intends to save 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 approved by the House of Lords, 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.

Several amendments were made to the Private Member’s Bill during its hearing on Friday (9 November), including giving local authorities the ability to apply for injunctions against scrap metal dealers who they have ‘reasonable cause to believe’ are operating without a licence, and refusing scrap metal licences to anyone with an ‘unspent criminal conviction’.

The hearing also outlined that the bill would have to be reviewed in three years’ time, with a ‘sunset clause’ for five years, to give government time to ‘evaluate the bill in action’.

Scrap metal cash ban

The bill follows on from the Home Office’s release of a scrap metal cash ban guidance document that was released last month.

Published on the Home Office website, the document provided ‘details of the new offence of purchasing scrap metal for cash’ and outlined how the law will be implemented when it comes into affect on 3 December 2012.

The guidance also outlined the government’s support of the new Scrap Metal Dealers Bill saying: ‘There remains an urgent need for wider reform and modernisation of the Scrap Metal Dealers Act through a more robust regime to regulate the scrap metal industry.

‘That is why government fully supports Richard Ottaway’s (MP for Croydon South) Scrap Metal Dealers Bill which… would introduce a rigorous new, local authority administered licensing regime with the local authority able to refuse and revoke trading licences; to require those selling metal to provide proof of identity; to include the LASPO cash prohibition and to widen the definition of a scrap metal dealer to include motor salvage operators.’

The Home Office goes on to say that new legislation would also be needed to ‘remove the existing record-keeping exemption which relates to some itinerant collectors who, until this legislation comes into force, will be excluded from the cashless provision’.

Industry reaction

The British Metals Recycling Association (BMRA) has welcomed the progress of the Scrap Metal Dealers Bill, with Ian Hetherington, Director General of the British Metals Recycling Association (BMRA), saying: “BMRA has long argued that a ban on cash alone will not have the desired effect on metal theft without a robust regulatory framework to back it up. We have worked tirelessly with government and other organisations across UK industry to bring about the necessary reforms.

“It is vital that the Scrap Metal Dealers Bill is implemented quickly by government to close off the loopholes created by the amendment to the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Bill which brought about the cash ban. This will reduce disruption to legitimate businesses whilst removing outlets for stolen metal.”

The new Scrap Metal Dealers Bill will now go the House of Lords before being submitted for royal assent.

Councillor Mehboob Khan, Chairman of the Local Government Association's Safer and Stronger Communities Board, also welcomed the ‘huge step forward’ in countering metal theft, saying: "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 bill will be a huge step forward 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.”

Khan added: "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 successfully gone through the House of Commons, we look to the House of Lords to get this on the Statute Book 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."