Comment
Stopping thieves in their tracks
Each year, thefts of copper cabling cost the rail industry more than 16,000 hours in delays. James Perry explains how the Metal Theft (Prevention) Bill could help
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recycling of scrap metal generates £5bn a year in the UK, and yet it is largely run on a cash-in-hand basis with little in the way of checks and balances. As a result, it is an
industry that has become a breeding ground for illegal activity, with unscrupulous dealers buying and trading in stolen metal. Unscrupulous thieves have resorted to
stealing everything from memorial plaques to padlocks on power substations. But no industry has been a more attractive target than the rail network, a fact that is seriously harming the rail industry, which suffers 2,700 thefts every year. A 70 per cent increase in overhead power
cables thefts, reported by British Transport Police, is beginning to cause serious issues to passenger safety. When one train got stranded last year,
passengers who were fed up with waiting exited from the carriages onto the tracks,
crossing live rails before reaching the embankment. The Metal Theft (Prevention) Bill
was proposed in the House of Commons on 15 November 2011 by Graham Jones MP. The bill aims to steer the scrap metal industry towards regulation – reducing metal thefts in the process – by imposing a comprehensive system of regulation, which will require dealers to purchase a licence and take steps to ensure they are not accepting stolen materials. Sellers of scrap will need to provide valid photo ID and proof of address, the details of which will be entered into a searchable national database. The bill also directly addresses the
serious issue of the cash-in-hand culture, which makes up 20 per cent of the industry’s value, and lays out plans to restrict all deals to cashless payments, while also preventing dealers from processing the metal before the payment has cleared. Finally, the bill looks to extend the remit of the police and
magistrates courts, giving the police powers to search dealerships and close those found to be harbouring stolen materials. The courts will be allowed to add restrictions to dealers’ licences and prevent yards that have been closed for illegal dealings from re-opening. It has also been suggested that a clearer
policy should be used to ensure scrap metal thefts are a focus of the Serious Organised Crime Association which recovers assets through its powers under the Proceeds of Crime Act 2002. Authorities in some bodies have already
taken matters into their own hands to combat metal thefts. In the north east of England, for example, a trial has been put in place requiring those selling scrap metal to participating dealers to provide proof of their identity, as per the guidelines in the bill. This initiative, dubbed Operation
Tornado, is being spearheaded by the British Metals Recycling Association, British Transport Police, Association of Chief Police Officers and the police forces in Northumbria, Durham and Cleveland. It is expected to remain in place for six months with the option to extend it further, and is likely to be used as a benchmark for implementation if the bill is passed. Although the bill was scheduled for its
second reading in January, this has now been postponed until March to give parliament more time to consider it. If the voice of key industry leaders is taken into account by parliament during the debates on this bill, then hopefully the rail industry will be able to ensure that any new legislation goes far enough to protect them – and all other industries – from the thefts that are turning the scrap metal sector into a black market.
A trackside patrol keeps an eye on a copper theft hotspot
JAMES PERRY is the senior solicitor in the banking and finance recoveries team at business solicitors DWF
MARCH 2012 PAGE 31
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