Press release - 16 Dec 2011

SITA UK launches new cashless payment system at west London metals recycling site

• SITA UK launches a new electronic payment method at its metals recycling site in Hayes. The scheme, which is the first of its kind in the UK, will be rolled out across SITA UK’s 10 metals recycling sites.
• Network Rail, BT and the Energy Networks Association have all expressed support for the scheme.
• SITA UK estimates that £1.5bn of the £5bn metals industry is transacted in cash every year.
• In addition, it is estimated that metal theft costs the British economy more than £1bn annually.

This new scheme will help combat fraud in the scrap metal sector and was launched by David Palmer-Jones, Chief Executive Officer at SITA UK’s metals recycling facility in Hayes, West London and attended by Lord Henley, Minister of State for Crime Prevention and Anti-Social Behaviour Reduction.

As a leading recycling and resource management company, SITA UK will be the first company in the industry to ensure fast and secure same-day bank transfers to encourage fewer payments in cash. This initiative could also be adopted by others in the industry to help reduce sales of stolen metal and metal thefts across the country.

From now on, traders at SITA UK’s Hayes site will be given the option to receive payment by cash or via the new scheme and will be incentivised to receive payment via a bank transfer on the same business day. The scheme will be rolled out to all of SITA UK’s 10 metals recycling sites over the coming months.

SITA UK estimates that £1.5 billion of the £5 billion metals industry is transacted in cash every year which makes it easier to sell stolen metal, creates the potential for tax fraud and could mean a significant loss of tax revenue for the government.

There has been a sharp increase in metal thefts from churches and war memorials as well as transport, power and communications infrastructure, where metal-bearing components are stripped out and sold for cash.

BT, Network Rail and the Energy Network Association have welcomed the scheme. They hope the move will deter would-be thieves and help combat the impact metal theft has on their businesses.

The electronic payment system will sit alongside a new compulsory photo ID procedure, which is being introduced in January so those selling metals can be positively identified.

David Palmer-Jones, Chief Executive Officer at SITA UK, said: “Metal theft is a serious issue throughout the UK and we fully support proposals to update the Scrap Metal Dealers Act. In addition, we believe that the use of a cashless system, coupled with compulsory use of photo ID for all transactions, will help to address the trading of stolen metals and issues such as tax evasion.

“We urge major players in the metals recycling industry to adopt similar cashless systems as a compulsory measure so we can help Government to combat metal theft.”

Lord Henley, Minister of State for Crime Prevention and Anti-Social Behaviour Reduction, said: “Metal theft is a serious and growing problem and the government is working hard with industry, police and law enforcement agencies to tackle it.

“It is clear that laws passed more than fifty years ago are no longer sufficient to deal with a crime that is increasingly dominated by organised gangs.  That is why we are looking at changing the Scrap Metal Dealers Act, 1964.

“In the meantime we are establishing a dedicated national taskforce led by the British Transport Police to step up enforcement and bring more of these unscrupulous criminals to justice.

“But we all have a part to play in stopping metal thieves and rogue scrap metal dealers from profiting, which is why I am pleased to support SITA UK’s new cashless payment system.  I hope it will encourage more responsible industries to take their lead.”

Luke Beeson, BT Security, General Manager, said: “BT welcomes the introduction of cashless payment systems and it is great to see SITA UK leading the metal recycling industry in the fight against metal theft.  We are asking government to modernise the 47 year old 1964 Scrap Metal Dealers Act to choke the market for stolen metals.  A review could provide local authorities and Police with more powers to govern the industry for the benefit of the industry itself and local communities across the UK, who are being impacted by the rise in attacks on national infrastructure.”

Dyan Crowther, Director, Operational Services at Network Rail, added: “The rail network is under attack from metal thieves.  Every day hundreds of passengers and essential freight deliveries are being disrupted and delayed.  We are doing all we can to protect the network; investing around £2m each year to fund extra BTP officers, using CCTV, forensic marking techniques and other technology yet incidents continue to cause costly delay.

“We believe the only way to reduce thefts is to make illegal scrap more difficult to sell.  The introduction of cashless systems at these sites is a welcome step and we fully support this initiative.”

David Smith, Chief Executive of Energy Networks Association said: “We fully support the initiative by SITA UK. A cashless system in the scrap metal industry will play a critical part in discouraging metal theft. This coupled with the much stronger ID requirements that SITA UK also propose will help stop this plague on our society. However, we want to see this rolled out across the industry and for that we will need legislation.”