The Committee to receive a presentation on the Scrap Metal Dealers Act 2013.

The Committee received a presentation on The Scrap Metal Dealers Act 2013 from the Havering Licensing Specialist.

The Committee was informed that the UK Metal Recycling Industry is worth about £5.6 billion. The industry was the most advanced recycling sector, processing about 15 million tonnes of scrap into secondary raw material to produce new metal every year. The industry contributed about £3.7bn to UK balance of trade and employed over 8,000 people.

The Scrap Metal Dealers Act 2013 received the Royal Assent on 28 February 2013 having passed Parliament. The law came into force in England and Wales on 1 October 2013. A statutory review was scheduled for within 5 years.

The law allowed for every a local authority to administer a licensing regime for the scrap metal sector. The Licensing authority responsibilities included the following powers:

•         Suitability test;

•         Revocation of licence;

•         Closure powers for unlicensed sites;

•         Licence fee – Licensing Authority to determine fee locally;

•         Entry and inspection powers;

•         Greater record keeping requirements;

•         Site and vehicle badging;

•         National register of licensed dealers.

The Committee was informed that the new regime provided the Licensing Authority an extended scope from the 1964 Act to supervise the following aspect of the metal trade:

•         scrap metal dealers;

•         mobile collectors (who do not have a site);

•         motor salvage operators; and

•         all other businesses who buy or sell scrap metal “in the course of their business” - this does not include businesses who buy or sell scrap as the occasional result of their primary business (e.g. pawnbrokers)

•         Two licences – (1) site; (2) collector

The Act detailed the following licence conditions for scrap metal dealers:

•         obtain a licence to operate as a scrap metal dealer

•         obtain a site licence – in the LA area in which the site it is located

•         obtain a collector licence – in the LA area in which the collector wishes to collect from (they would  likely hold more than one licence) if they collect across two or more boroughs

•         prominently display their licence in a publically accessible place;

•         verify and record the identification of the person selling the metal;

•         not purchase metal for cash; and

•         keep records of all metals received and disposed of.

The Act also detailed that the Environment Agency would keep a national public record of all licensed scrap metal dealers and the Police and Local Authority will carry out inspections.

The committee was informed that in Havering, there were currently 29 Licensed Scrap metal sites.

•                     10 in Rainham and Wennington Ward

•                     7 in South Hornchurch Ward

•                     2 in Cranham Ward

•                     2 in Brooklands Ward

•                     2 in Havering Park Ward

•                     1 in Harold Wood Ward

•                     1 in Heaton Ward

•                     1 in Squirrels Heath Ward

•                     1 in Upminster Ward

•                     1 in Romford Town Ward

•                     1 in Mawney Ward

And that there were 14 Collectors Licensees, with eight of them living in Havering.

The Committee noted the presentation.