Fears over move to scrap cash payments

THE scrap metal industry is putting up a fight against a proposed bill that would ban companies from paying for scrap in cash, saying the measure would redirect trade to the black market.

Graham Jones, a Labour MP, proposed the changes to combat metal theft, including tougher punishments for thieves, CCTV on scrap yards and mandatory ID checks.

He expects the Government to introduce alternative legislation. “This is our one opportunity to introduce cashless payments, and we’ve got to be ahead of the game,” Mr Jones said.

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The British Metal Recycling Association, an industry body with 300 members who process over 95 per cent of Britain’s scrap, supports more stringent laws on metal theft but opposes the cashless system.

“Now if you introduced a ban on cash tomorrow, the effect of that would be that the legal trade would just siphon away into the illegal yards,” said Ian Hetherington, the director general.