Scrap Metal Reform Update
The theft of scrap metal continues to have a significant impact on, not only the building and construction industry, but the wider community, locally, nationally and globally.
Continued efforts towards Scrap Metal Law reform have progressed. The National Motor Vehicle Theft Reduction Council Expert Reference Group (ERG) has continued to work towards bringing WA in line with the NSW and Victoria Government reforms. The ERG, comprising of NMVTRC, WA Police Force, Sims Metal, Braven Group Services (Pact Site Security), MTA and Dept of Transport discussed two options of legislative change.
Further to our previous news story HERE, a Regulatory Impact Statement(RIS), commissioned by NMVTRC through the ERG, has been finalised. The report provides an analysis of the costs and benefits of two reform options and examines three options for legislative reform;
• Option 0 – Base case
• Option 1 – Amend the Western Australian Pawnbrokers and Second-Hand Dealers Act 1994
• Option 2 - New legislative powers - based on the NSW Scrap Metal Industry Act 2016
It considers the quantitative costs and benefits to determine the option that delivers the most significant benefit to the Western Australian community.
The analysis suggests that the introduction of new stand-alone legislation delivers a larger benefit at a lower total cost for both government and industry. This option mirrors the approach introduced by New South Wales in 2017 and includes no cash or cheque payments for scrap.
Cash for scrap continues to be one of the main drivers for theft. Thieves can cash-in stolen metal with ease receiving between $5.00 to $7.00 per kilo for copper piping and stripped cable, $1.50 to $2.00 per kilo for unstripped electrical cable and $4 per kilo for brass (water meters). Easy money for a drug user looking for quick cash to score for the day.
While numerous scrap metal dealers conduct their businesses lawfully there exists a number who operate in an entirely non-compliant manner. This comes at the expense of not only the legitimate scrap metal business operators but also the wider community when you take the impact of property crime into account.
With the final RIS report forwarded to the Police Minister in April 2020, recommending the new legislative change, we are hopeful of positive government response to ensure the Scrap Metal Industry comes under appropriate regulation to halt the ‘cash for scrap’ issue that continues to impact the entire community.
It is imperative that those impacted by scrap metal theft report all incidents to Police or through PACT Site Security’s online reporting platform. All PACT reports are collated and submitted to WA Police to provide accurate reporting and assist in maintaining pressure on authorities to finally regulate the Scrap Metal Industry.
For more information, call 1800 272 836 or click here to connect
FOOTNOTE: WA Govt media release 30/08/2020 https://www.mediastatements.wa.gov.au/Pages/McGowan/2020/08/Government-taking-action-to-crack-down-on-copper-theft.aspx
WA Police Force media release