Recycling firm 2 Recycling has welcomed the move towards cashless payments for scrap metal from 3 December 2012.

The Scrap Metal Dealers Bill (2012), proposed by Tory MP Richard Ottaway, which replaces the outdated Scrap Metal Dealers Act 1964, is part of the Government’s initiative to stamp out metal theft. As well as cash the law, introduced under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, also prohibits payments by postal order, gift voucher, mobile phone credit and foreign currency.

The UK metal recycling industry is worth around £5.6 billion per year and employs just over 8,000 people. Unfortunately, the industry has been subjected to criticism from politicians, the media and customers because of the role some dealers play in buying and processing stolen metal.

With the soaring price of metal prompting a rise in metal theft, insurance companies say theft in the UK has doubled in five years, costing the economy around £700 million annually. Around 15,000 tonnes of metal is stolen every year and popular targets include energy and communications networks, railways, roof lead, street furniture, gas canisters and scrap metal dealers.

Under the new bill all scrap dealers will be required to hold a licence. Councils will be empowered to refuse, vary and revoke scrap metal dealers’ licences and charge a fee to cover the costs of the scheme, police and councils will also have the power to close unlicensed premises. Metal sellers will be required to produce verifiable identification, which is recorded and kept for two years by the dealer. And, the Environment Agency will establish a nationwide public register of scrap metal dealers.

When 2 Recycling was established in 2007, the company was founded on strict professional ethics and every customer transaction is fully traceable, with all business activity fully complying with or exceeding the constraints of the new law. Welcoming the new legislation, which will improve the image of the recycling industry, Operations Director, Stuart Elliot, explains: “The widespread use of cash to pay for metal has been blamed for facilitating crime within our industry. Now, for the offense of buying scrap metal for cash, dealers will face unlimited fines. Being unlicensed or failing to record deals will also attract large financial penalties.”