Cardiff residents are being reminded that it’s illegal to be paid in cash when disposing of scrap metal (including vehicles) as new licensing laws are introduced for scrap metal dealers.
From 1 October, all scrap metal dealers, operating from a fixed site or as a mobile collector will need to apply for a licence from the Council under the Scrap Metal Dealers Act 2013. This new legislation replaces the process set out in the Scrap Metal Dealers Act 1964.
The new legislation will ensure that dealers operating illegally are now unable to do so. It is estimated that metal theft has cost the British economy between £220 m and £777 m a year which has led to disruption to energy supplies, transport, telecommunications as well as stolen manhole covers and memorials.
Councillor Ashley Govier, Executive Member for the Environment said: “Illegal metal theft is a costly business for local authorities, as the scrap metal value obtained by the thieves is a fraction of the cost to what the Council has to pay to replace these items. Manhole covers are often stolen which is both dangerous to the public and costly to replace. This new legislation will ensure that an audit trail is produced so that any investigations by the Police or the Council are far more productive.”
Anyone operating a business as a scrap metal dealer or motor salvage operator must apply for either a site licence or a collectors licence which lasts for 3 years. A site licence costs £293and is required for businesses that purchase, or store for future sale scrap metal.
A collector’s licence costs £239 and is required for any scrap collection business from households or businesses that sell it on to scrap yards or motor salvage businesses.
There is a transitional period for traders already registered with the Council under the 1964 Act allowing them until October 15 2013 to apply for a license while continuing to trade while their application is processed. If applications are submitted after this date they will not be able to continue to trade until their licence is issued.
Traders will be required to display their licence at their place of business or on their vehicle, so residents can be confident they are trading with a legitimate dealer. Residents can also check details through an online public register maintained by Natural Resources Wales, which regulates traders to ensure they hold the appropriate waste carriers’ licences.
Traders will also be required to verify and record customers’ names and addresses (by using appropriate identity documents) and will be breaking the law if they pay for the metal in cash.
The Act has introduced a ‘suitability’ test, which means the Council must be satisfied that the applicant is a suitable person to operate as a dealer before they issue a licence. This will include taking into account whether the applicant has any relevant convictions or if relevant enforcement action has previously been taken against the applicant.
Council and police officers will be jointly enforcing the new laws, which give powers to inspect dealers’ records, close unlicensed sites and revoke the licences of dealers who breach the new requirements. The Act comes into force on 1st December 2013.
For more information about the new legislation, please contact Cardiff Council’s Licensing team on 029 20871651 or [email protected]. If you have information about metal theft, please contact South Wales Police.
