MP welcomes ban on paying cash for scrap metal

James Morris welcomes the ban on cash transactions for scrap metal and calls for stiffer penalties for metal theft offences.

James Morris (Halesowen and Rowley Regis) (Con): There have been many disturbing instances in my constituency relating to metal theft. Just before Christmas, tenants had to be evacuated from their flats after a gas leak was discovered on an estate in Halesowen. Lives are clearly being put at risk by criminals stealing this metal. We know that most metal dealers take all appropriate steps to check the provenance of the scrap metal they are buying. Soon after I was elected, I toured the Mason Metals recycling centre in Halesowen. Mason Metals was working with Dudley police on “Scrap Yard Watch”, an appointment-driven collection scheme to help householders to dispose of large white goods legally and responsibly. It has now launched a new membership card programme for its customers. That scheme is in addition to the statutory waste transfer note records and is run alongside other measures.

I very much welcome the Government’s announcement that cash transactions for scrap metal will be outlawed. I understand the concerns voiced by legitimate metal recyclers, but the growing problem of metal thefts cannot be tackled effectively without proper traceability. We also need tougher penalties for those who are caught and convicted so that punishments are more proportionate to the scale of the crime. A £1,000 fine is hardly a deterrent for the unscrupulous minority. The Home Secretary has said that sentences will be significantly increased, which is very good news. Scrap metal dealers who offer a market for stolen metal, whether knowingly or by failing to carry out adequate checks—

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Due to time constraint, the speech was cut off. Here is the full speech as prepared by James

I should start by declaring an interest because, like Halesowen parish church, several schools and countless other buildings around my constituency, my association offices have recently fallen victim to the theft of metal from the roof.

Whilst this is extremely annoying and costly, at least it is mainly confined to economic loss.

More disturbing are incidents such as the one that occurred in Halesowen shortly before Christmas. Tenants had to be evacuated from their flats after a gas leak was discovered.

The leak had been caused by copper pipes being ripped from the wall, presumably to be sold as scrap metal. As worrying as this must have been for the families concerned, even more frightening is the thought of what could have happened if this leak had not been discovered.
Lives are clearly being put at risk by criminals stealing this metal.

There is strong agreement that action is urgently needed to tackle the problem. The £5million announced by the Government for a new dedicated metal theft taskforce will help to make sure that there is a lower chance of metal thieves getting away with it and is certainly a positive initiative.

However, if we are to make any real and lasting impact on metal thefts then efforts must be focussed on reducing demand for stolen metal and that means action against the crooked minority of metal dealers who allow the trade to continue.

We know that most metal dealers took all appropriate steps to check the provenance of the scrap metal that they are buying.

Indeed many are actively working with the Police and local authorities on new initiatives to root out stolen metal.

Soon after I was elected, I toured the Mason Metals recycling centre in Halesowen. Mason Metals were working with Dudley Police on “Scrap Yard Watch” an appointment driven collection scheme to help house holders dispose of large white good legally and responsibly.

They have now launched a new membership card programme for their customers, with all members having to prove their ID and address annually. The benefit for customers is that it allows transactions to be completed more quickly and efficiently. The benefit for the company – and in terms of fighting metal thefts – is that it provides a robust paper trail for metal transactions.

This scheme is in addition to the statutory Waste Transfer Note records and is run alongside other measures to identify stolen metal, including comprehensive CCTV monitoring and checks with ultra-violet torches.

Legitimate metal traders are already taking action on this issue.
It is important that we make sure that the right regulatory framework is put in place so that those who do the right thing are not put at a competitive disadvantage.

I very much welcome the Government’s announcement that cash transactions for scrap metal will be outlawed.

I understand the concerns voiced by legitimate metal recyclers that a ban on cash payments risks driving the less scrupulous sections of the industry underground where it will be even more difficult to regulate them.

However, the growing problem of metal thefts cannot be tackled effectively without proper traceability. It is difficult to see how that can possibly happen as long as metal thieves can turn up at a scrap metal merchant and instantly receive cash payments for whatever they happen to have acquired.

We clearly need tougher penalties for those who are caught and convicted so that punishments are more proportionate to the scale of the crime. A £1,000 fine is hardly a deterrent for the unscrupulous minority of metal dealers when compared to the money that can be made from stolen metal.

The Home Secretary has said that sentences will be significantly increased and that is very good news. Scrap metal dealers who offer a market for stolen metal, whether knowingly or through failing to carry out adequate checks, provide the integral force driving this illicit and dangerous trade forward. The punishments for those who are found guilty must reflect that and those actively support the trade in stolen metals should be behind bars, not in business.

I would ask the Home Secretary to also consider whether greater use of custodial sentences would be appropriate for cases where thieves have clearly and recklessly put other people’s lives at risk through their actions – such as thefts of gas piping, electricity cabling and railway tracks.

It is only through good fortune that significant loss of life as so far been avoided.