Scrap dealer fights ban on cash payments

Steven Robertson, director of John Brocklesby and Sons Ltd, Hull, who is meeting Home Office Minister Lord Henley on Thursday in London, says amendments to the Scrap Metal Dealers Act 1964 are fundamentally flawed.

There have been increasing calls for action to stem the rising tide of metal theft.

Cable theft cost Network Rail £16m last year and disrupted more than 35,000 rail journeys. Church insurer Ecclesiastical is investing £500,000 to install roof alarms free of charge on some of the most at-risk churches to try and deter lead thieves. The Country Land & Business Association, representing farmers and landowners, have backed the amendments, saying a ban on cash sales will prevent anonymous sales because the metal can always be traced back to the person who sold it to the dealer.

However Mr Robertson said the changes would drive rogue scrap metal dealers underground – leaving registered dealers to pay the price for the criminal minority.

He is suggesting a 10 per cent tax at source on cash transactions instead, combined with compulsory photo identification for sellers and more resources directed towards finding and closing down unlicensed yards.

He said: “Banning cash is a major mistake.

“This measure would have minimum impact on the criminal fraternity as they would dispose of stolen items through unlicensed yards, which would continue to pay cash.

“It would however, have a negative impact on licensed merchants and metal sellers who legitimately deal in cash.

“Putting a 10 per cent tax charge on all cash payments would create a completely new revenue stream for the Government.”