Licensing and
Regulatory
Committee
Title:
22 January 2015
Matter for
Information
Update on the implementation of the Scrap Metal
Dealers Act 2013
Author:
Kalv Garcha, Head of Corporate Resources
1 Introduction
The Scrap Metal Dealers Act 2013 (“the Act”) came into effect on the 1 October 2013
replacing the system of registration under the Scrap Metal Dealers Act 1964 with a
full licensing regime. At a previous meeting the Licensing and Regulatory Committee
requested an update to be provided on the implementation of the Act.
2 Recommendations
That this report be noted.
3 Information
The Act requires the Council to only licence those who it considers suitable to carry
out the business of a scrap metal dealer in its Borough as explained in the Council’s
adopted Policy.
The ability to regulate the suitability of scrap metal dealers is designed to improve
operating standards across England and Wales, reduce the levels of crime
associated with metal theft and to encourage those dealers who do not operate to
the high standards of the majority of reputable dealers to take the appropriate steps
to do so or risk being unlicensed and unable to operate legally. Once issued a
Licence lasts for three years.
There are two types of Licence, one for a site and one for a mobile collector (those
carrying on the business of a scrap metal dealer other than at a site).
A Site Licence allows the holder to buy and sell scrap metal from a fixed location
within the Borough. Each site will have a nominated Site Manager named on the
Licence who is responsible for its activities.
A Collector’s Licence allows the holder to travel around the Borough for the purpose
of collecting scrap metal.
An applicant may only apply for one type of Licence with the Council, but one Site
Licence can include multiple sites in the Borough.
Prior to the Act coming into force the Council had three scrap metal dealers on its
register. The Government allowed a transitional period of 1 October 2013 to 15
October 2013 to allow existing businesses to make an application in order to
continue trading.
The Council granted one site licence application and one collectors licence
application made during the transitional period. Two further applications were made
and later withdrawn.
Officers were subsequently made aware by a further business that they had not
applied for a licence during the transitional period as they were not aware of the new
legislation. This led to that business having to cease operating and make alternative
arrangements for a time. Officers had sent numerous letters to this business and
others prior to, during and after the two week transitional period.
Officers’ opinion is that the legislation was rushed by the Government and poorly
advertised by them, instead relying on industry bodies and local authorities to
advertise the new legislation. Many businesses affected nationally by the new
legislation hold a number of permits issued by the Environment Agency, County
Councils and Environmental Health teams of Districts under various legislation and
additionally would have held registrations with local authorities under the old 1964
Act displaying expiry dates well into 2016.
The result was that a number of businesses across the Country failed to make
applications for new licences within the restrictive transitional period provided by the
Government. This was either due to the belief that they already held the right
licences or because they simply were not aware of the change in legislation.
Nationally, licensing authorities have found many flaws in the legislation. It was a
private members Bill rushed through Parliament without sufficient scrutiny and
consideration that does not provide the effective local authority remedy’s that the
Corporate Resources (Licensing Team) would like to see.
One problem identified is that the holder of a site licence can collect in any council
area regardless of the authority who granted the licence. Therefore the holder of a
site licence in Liverpool can collect legitimately in this Council’s Borough and the
Council have no control or ability to enforce against this collector for any offence
under their licence, such as the failure to display a copy of the licence clearly within
their vehicle.
Identifying those who collect illegally poses difficulties as the Act only requires a
paper licence to be displayed within a vehicle used for collecting. Members of the
public are not yet aware to look for this licence meaning that information provided to
Local Authorities is not usually sufficient in identifying a collector. Furthermore, as
the collector could be licensed by any Council in the Country, it is impossible to state
whether an offence was committed or not.
No complaints have been made by members of the public to the Council about any
Scrap Metal Dealers since the legislation came into force. This is not unexpected as
members of the public are often content to leave items of scrap by the roadside
knowing that they will be collected (even if the collection is illegal) or a resident will
report an item left outside by their neighbour as a fly tipping matter to be investigated
by the Environmental Health Team.
Officers have investigated some complaints from members and matters were raised
with the Corporate Enforcement team. To better inform residents Officers will be
preparing an information article for a forthcoming edition of Letter Box and will
continue to work with the Corporate Enforcement Team.
The Licensing Team has assisted the Corporate Enforcement Team with the
investigation of two cases where individuals in domestic homes have been carrying
out activities causing a nuisance or concern to neighbours and where part of that
activity involved matters that could have been offences under the Act. Both cases
were later resolved as a consequence of this cooperative team work.
Nationally it is accepted that there will always be some level of illegal collections
made by those without a licence on an ad hoc basis or by simply taking advantage of
the opportunity where items are left by the roadside for collection. The owner of the
item will not report the incident as they simply want the item to be taken away. In
this regard the Act is not desirable and does not resolve or prevent such activities.
The Act is however effective in scrutinising the large scale transactions that occur at
sites which would usually be the result of another criminal activity (i.e. car theft, or
lead theft from church roofs). In order for such offences to be profitable to the
criminal the metal is usually sold to a site. Site licence holders are required to identify
the seller by looking at a valid form of identification (Passport or driving licence) and
must hold metal for a certain period in the form it was purchased. If the item is
reported stolen the Police have the opportunity to be able to identify its purchase
through a site licence holder and trace the thief.
The Environment Agency, the Police and the Environmental Health Team of the
Council have not reported any concerns to the licensing team relating to illegal
collections or non compliance with the Act. Officers are therefore satisfied that there
is not any significant concern in relation to criminal activity within the Borough
requiring resolution by the Licensing Team.
An enforcement programme is intended to be set up by the summer of 2015 in
conjunction with the Corporate Enforcement team and, where necessary, the local
Police.
Email: jamie.guazzaroni@oadby-wigston.gov.uk
Tel: 0116 2572 637
Background Papers:Implications
Financial (PL)
Risk
Equalities (VQ)
There are no financial implications in this report.
CR6 – regulatory governance.
No initial equalities assessment is required as the report
is for information only.
Legal (AW)
There are no legal implications to this report as it simply
explains the implementation and affect of the above
legislation in the opinion of the Licensing Team.