Agenda item

To consider a report by Councillor David Smith (copy enclosed) on a revised regulatory regime for the scrap metal dealing and vehicle dismantling industries.

Councillor David Smith presented the report, circulated previously, which detailed the provisions of the Scrap Metal Dealers Act 2013 and requested the approval of suggested delegated powers and fee setting for the Authority.

 

RESOLVED:- that Cabinet approves:-

 

(a)          the delegation of the powers under the Scrap Metal Dealers Act to the Head of Planning and Public Protection.

(b)          the delegation of the decision of the adoption of the fee level for Scrap Metal licences to the Head of Planning and Public Protection, with approval from the Lead Member, and

(c)          the Head of Planning and Public Protection examine the legislation pertaining to the displaying of identity badges by Scrap Metal Dealers.

 

Councillor David Smith presented the report, circulated previously, which detailed the provisions of the Scrap Metal Dealers Act 2013 and requested the approval of suggested delegated powers and fee setting for the Authority.

 

The HPPP explained that the Scrap Metal Dealers Act 2013 repealed the Scrap Metal Dealers Act 1964 and Part 1 of Vehicles (Crime) Act 2001 and brought forward a revised regulatory regime for the scrap metal dealing and vehicle dismantling industries, providing the Council with a strong legislative framework to empower the Council and Police in the fight against offenders who wilfully plunder the Country of metal, whilst also strengthening and supporting legitimate scrap metal dealers.  The regulation of scrap metal dealers had been revised to address the major impact of metal theft on the economy, with the introduction of the Scrap Metal Dealers Act 2013.

 

The Act provided Local Authorities with the power to better regulate these industries by providing a power to refuse to grant a licence and revoke licences if a dealer was considered unsuitable.  Unsuitability would be defined by a number of factors including any relevant criminal convictions.  The Act would provide Local Authorities (LA’s) and Police Officers with suitable powers of entry, inspection and to close down unauthorised sites.

 

The Act would create two different types of Scrap Metal Licence, either a “Site Licence” or a “Mobile Collectors Licence”.  Mobile Collectors would be required to have a licence in every LA area in which they operated.  The Natural Resources Body for Wales would maintain a public register.  Dealers currently registered under the Scrap Metal Dealers Act 1964, or a motor salvage operator already registered under the Vehicles (Crime) Act 2001, would be permitted to continue to operate legally, providing that they applied for a licence under the new Act by the 15^th October, 2013.  Existing Licences would be valid until a new licence was issued, and transitional arrangements had been implemented via a Commencement Order.

 

The HPPP explained that after the 1^st October, 2013 applicants not registered under the Scrap Metal Dealers Act 1964 or the Vehicles (Crime) Act 2001would be unable to trade legally until a licence had been issued.  Full enforcement of the provisions in the 2013 Act would commence from the 1^st December, 2013.  Under the 1964 Act LA’s had to register anyone notifying them that they were operating as a scrap metal dealer.  Under the 2013 Act LA’s would be able to refuse to grant a licence where the applicant was judged not to be unsuitable to operate as a scrap metal dealer.  Guidance had been made available on assessing the suitability of applicants.

 

Where the Council considered it necessary to refuse to issue, vary or revoke a licence, the applicant or licensee would be afforded the opportunity to make oral representations.  The Local Government Association (LGA) Guidance regarding the Act recommended that the LA Licensing Committee, as the appropriate body, should hear representations.  Persons aggrieved by a decision can appeal to the Magistrate’s Court.

 

The granting of uncontested applications, or in cases where there were no questions about the suitability of an applicant, could be delegated to Licensing Officers.

 

Other powers contained in the Act provide for:-

 

·                Licences to be displayed

·                Dealers to carry out identity checks on scrap metal providers

·                Dealers to keep records of any scrap received or disposed of

·                Prohibition of cash payments. Payment can only be made by non-transferable cheque or transfer of funds

·                Local Authorities and Police to enter and inspect licensed premises

·                Variation of or refusal to vary a licence

·                Revocation of a licence

·                Closure of sites through Closure Orders from a Magistrates Court

·                Establishment of a Public Register, hosted by the Environment Agency and   Natural Resources Wales, of all individual and businesses licensed as scrap metal dealers 

 

To provide time for LA’s to process applications the Home Office had implemented a transition process.  The transitional arrangements would be implemented by a commencement order allowing Councils to set a licence fee for applications from the 1^st September.  It would also specify that the remaining sections in the Act commence on the 1^st October, apart from the majority of criminal offences and enforcement-related provisions, which would commence on the 1^st December.  The exception would be the ban on cash payments for scrap metal which would come into force on the 1^st October.

 

The 2013 Act created a fee raising power to allow LA’s to recover costs incurred and Home Office Guidance had been provided.  There would be a requirement for LA’s to comply with the EU Services Directorate and the Provision of Services Regulations 2009.  Fee charges could only reflect the actual cost of processing the licence application and checking compliance with the licence conditions and provisions of the Act.  The LGA and Home Office guidance relating to the implementation of the Act and fee setting had been published in August following a significant delayed. 

 

The HLDS explained the legislative procedure with regard to the authorisation process and confirmed that the matter would be presented to County Council for approval.  In reply to a question from the Leader, the HPPP outlined the consultation process undertaken and confirmed that local Scrap Metal Dealers would be consulted regarding the fee setting process.

 

The Head of Planning and Public Protection agreed to a request from Councillor D. Simmons to examine the legislation pertaining to the displaying of identity and authorisation badges by Scrap Metal Dealers.

 

 

RESOLVED:- that Cabinet approves:-

 

(a)          the delegation of the powers under the Scrap Metal Dealers Act to the Head of Planning and Public Protection.

(b)          the delegation of the decision of the adoption of the fee level for Scrap Metal licences to the Head of Planning and Public Protection, with approval from the Lead Member, and

(c)          the Head of Planning and Public Protection examine the legislation pertaining to the displaying of identity badges by Scrap Metal Dealers.