Gavin Williamson, MP for South Staffordshire, has raised concerns to Ministers about a loophole that is enabling scrap metal dealers to circumvent a new law preventing them from paying for goods in cash.
The law, which came into effect in October 2013, is designed to combat a burgeoning criminal trade in scrap metal by forcing dealers to pay suppliers electronically or by cheque. This ensures that there is an accurate record of the transaction and helps to deter theft.
Under The Scrap Metal Dealer Act 2013, magistrates are able to issue fines of up to £5,000 to scrap metal dealers who trade in cash. Furthermore, the Act gives local authorities and police new powers to inspect premises where they suspect illegal activity.
However, a series of dealers are seeking to get around this new law by offering to cash cheques on the premises. While, in many cases a photo ID and recent utility are needed to set up a cheque for cash account, there are fears this will not deter criminals seeking to make a quick buck.
Indeed, one local scrap metal dealer has even boldly boasted about its new system in a local paper. In an advert, it stated: “Weigh your scrap. Have a cheque. Cash your cheque with us. Leave with the cash. Just like the good old days. CASH FOR SCRAP.”
Gavin has written to the Minister of State for Crime Prevention, Norman Baker MP, to request that this matter is investigated and that measures are put in place to protect the system from further exploitation.
He said: “This is obviously of deep concern to many local residents. Metal theft does a huge amount damage to local communities - from disrupted rail services to desecrated war memorials and damaged church roofs – and costs the national economy £220 million a year.
“I will continue to campaign in Parliament to ensure that this serious issue is addressed and that unscrupulous operators are appropriately punished.”