The British Metals Recycling Association (BMRA) is calling on local authorities to speed up the processing of scrap metal licences after a survey revealed that only 60 per cent of BMRA members had received theirs.

Under the Scrap Metal Dealers’ Act 2013 – which came into force in December 2013 – all site-based and mobile scrap dealers, including motor salvage operators, are legally required to hold scrap metal licences.

The legislation was brought in as part of a move to clamp down on rogue traders and limit the potential outlets for stolen metal.

The law also allows the licensing authority to check the criminal records and ‘suitability’ of all applicants, and gives local authorities and the police powers to revoke licences if they suspect a dealer of illegal activity.

However, the BMRA is calling on local authorities to speed up the processing of licences for scrap metal dealers, after it found that around 40 per cent of its 300 members were yet to receive their licence, despite submitting their applications before the 15 October deadline.

This, the BMRA says, is ‘causing a loss of business for legitimate traders as some major sellers of scrap metal such as utility companies and automotive manufacturers require evidence of a current licence as part of their tender process’.

'Imperative that councils are given the adequate support'

The body is now calling for ‘support’ to be given to local authorities to speed up the issuing process.

Ian Hetherington, Director General of the BMRA, commented: “It is imperative that councils struggling with scrap metal dealer licences are given the adequate support to process them as quickly as possible. If not, legitimate traders may be put out of business as they are now required to possess a licence to operate legally.

“Enforcing the new legislation is a challenge for local authorities and police due to declining budgets and resources. However, the licences are self-financing so sufficient resources must be allocated. Otherwise the new system only increases the administrative burden for law-abiding dealers while illegal operators go unpunished and undermine the industry.”

Commenting on the disbanding of the National Metal Theft Taskforce (which received government funding from January 2012 to 31 March 2014), Hetherington said he was “extremely concerned” about the effects it could have on metal theft.

He added: “Home Offices figures which show a decline in metal theft offences across England and Wales in 2012/13 prove that coordinated enforcement is effective in reducing metal related crime.

“If the new Scrap Metal Dealers’ Act is not enforced properly then metal theft will increase in the long term and the police will be overwhelmed.”

The BMRA’s 300 members include large and small businesses in the ferrous and non-ferrous sectors including shredder operators, merchants and traders.

Read more about the Scrap Metal Dealers’ Act 2013 or the BMRA.