Scrap Metal Dealers Bill

Debate between Robert Neill and Jeremy Browne

Friday 9th November 2012 Commons Chamber

[Mr Browne]

As I said a moment ago, the scrap metal dealer is responsible for displaying the licence. It is as straightforward and uncomplicated as that.

[Robert Neill (Bromley and Chislehurst) (Con)]

I hope the House will be reassured to learn that what my hon. Friend the Member for Christchurch (Mr Chope) suggested could not, in fact, occur. Local authorities are effectively the prosecuting authorities, and like any prosecuting authority they have discretion over whether they actually prosecute, although the offence concerned may be one of absolute liability. If the scrap metal dealer can produce a genuine explanation, a local authority is hardly likely to embark on a prosecution, given the time and expense involved. It is a matter of common sense.

[Mr Browne]

I am grateful to my hon. Friend for drawing on all the expertise that he gained in public life. As I have said, we would expect law enforcement agencies to seek compliance in the first instance rather than proceeding immediately to prosecution. Not only does that discretion exist, but we would encourage it. However, we do not want to create a large amount of uncertainty about the obligations on scrap metal dealers, which is why I responded to the earlier interventions in the way that I did.

I do not believe that new clause 5, tabled by my hon. Friend the Member for Christchurch, is necessary, on the grounds that clause 1 already makes carrying on a business as a scrap metal dealer without a licence a criminal offence. The Government are also committed to preventing the unnecessary proliferation of criminal offences, which is the principle that underpins the Ministry of Justice gateway process.

Amendments 1 and 2 require the issuing local authority to be named on both site and collector licences, so that any queries relating to a licence can be directed to the correct authority. Amendment 3 outlines for local authorities the form in which a licence should be issued, namely the information that must be displayed on it, and requires the licence to be in a form that enables the licensee to comply with the new duty to display it. A delegated power remains so that the Secretary of State can make regulations prescribing further requirements enabling the form and content of the licence to change over time, for example to keep pace with developments in technology and the industry.

The Bill currently applies a number of requirements to the Environment Agency, but from 1 April 2013 the agency’s environmental functions in respect of Wales will be assumed by the Natural Resources Body for Wales. Amendments 4 and 8 to 17 ensure that the new body is referred to throughout the Bill. We do not propose any difference between the functions of the two bodies, but it was brought to our attention that there would be insufficient clarity in Wales if the Bill were not amended in this way.

Amendments 5, 6 and 7 relate to the conditions that a local authority can use to vary a licence. Clause 3(8)(a) allows an authority to restrict a scrap metal dealer’s trading hours, while clause 3(8)(b) requires all scrap metal received to be kept in the same form for up to 72 hours. We believe that those provisions could prove too onerous, so amendment 5 specifies the hours during which the condition can apply. We believe that allowing trading between 9 am and 5 pm will give dealers reasonable hours in which to operate, while also aligning their operating hours with those of local authorities so that they can monitor dealers more closely. I know that some Government Members, at least, will welcome our liberalising approach to what some may regard as the excessively burdensome obligations placed on scrap metal dealers.

Clause 4 allows a local authority to revoke a licence if it is no longer satisfied that the licensee is a suitable person to conduct a business as a scrap metal dealer. In September, members of the Public Bill Committee expressed the fear that allowing a licensee to operate without restriction pending an appeal against the revocation of his licence could lead to further criminal or undesirable behaviour during the transition period. Since then my Department has reviewed the issue, and has concluded that it would be sensible to amend the Bill in the light of what was said in Committee. Amendment 7 does not remove a licensee’s right to appeal against a local authority’s decision to revoke his licence, but does provide that the authority can impose conditions on the licence pending an appeal or a decision to vary the licence by adding conditions. That means that when a licensee appeals, the authority may impose one or both of the conditions contained in clause 3(8).

The powers under the clause will apply when a licence has been revoked or has been varied by the authority with conditions added. In both circumstances, that will mostly be a result of the licensee’s conviction on a relevant offence, or of the emergence of another reason to question his suitability to hold a licence. As with the conditions more generally, the powers are designed not to prevent an individual from engaging in work as a scrap metal dealer, but to impose some restrictions so that, although dealers can still operate, local authorities and law enforcement organisations can monitor their behaviour closely should they wish to reduce the opportunities for further offending. Once an appeal has been heard, if it is decided that the dealer is suitable to operate, the conditions will be lifted and he should be able to trade unhindered.

Amendment 6 introduces a drafting improvement. It seeks to clarify the wording of clause 4(6) as a result of the change made by amendment 7, but does not alter the principles of the clause in any way.

I do not propose to deal with all the amendments in the group, including the Opposition amendments, because there are a great many of them, but I hope that I have explained to the House’s satisfaction the motivation behind the Government new clause and amendments, and have conveyed our general desire to take a broad and collegiate approach in support of my hon. Friend the Member for Croydon South. We hope that the Bill will enjoy a speedy passage this morning.