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A REPORT BY THE TASK GROUP SET UP TO REVIEW THE LICENSING PROVISIONS CONTAINED IN THE CIVIC GOVERNMENT (SCOTLAND) ACT 1982
4. SECTIONS 28-37 - METAL DEALERS AND ITINERANT METAL DEALERS
This part of the Act imposes a mandatory requirement on licensing authorities to license metal dealers and itinerant metal dealers. It also contains provisions relating to exemptions, keeping of records, offences and the order-making powers of the court in the event a metal dealer is convicted of an offence.
Metal Dealers
4.1 The Task Group sought views as to whether there is a continuing need to license metal dealers, and if so, whether the licensing regime should remain mandatory. We noted that the current mandatory regime is fairly bureaucratic and prescriptive, and as such does not sit comfortably with the Scottish Executive's policy on better regulation. The response to the consultation was mixed, though it was clear that respondents did not consider crime problems relating to metal dealing to be as great as they were at the time the Act was drafted. We concluded that, as the number of metal dealers and associated problems has decreased, there is no justification for the regime continuing to be mandatory. We accepted however that there may still be some public safety (e.g. scrapyards being potential fire hazards) and crime prevention concerns in some areas. As such, individual licensing authorities should continue to be able to license metal dealers within their area if they consider that there is a need to do so.
Recommendation
The Task Group recommend that, given the decrease in this type of activity over the last 20 years, the current mandatory licensing scheme for metal dealers should be replaced with an optional licensing scheme.
4.2 The Task Group sought views on whether the provisions at section 29(1) which exempt metal dealers with a turnover of more than 100,000 from any licensing requirement should remain in place, given that this figure is over 20 years old. We concluded that, in keeping with our recommendation that the licensing requirement should be optional as opposed to mandatory; the turnover figure should be repealed rather than updated. Under an optional scheme, licensing authorities could set their own exemption figure if they considered it necessary or appropriate to do so. While we recognised this had the potential to cause some inconsistency for companies operating nationally, we took the view that there were very few companies that operated in more than one local authority area.
Recommendation
The Task Group recommend that while the exemption provisions should remain, the annual turnover requirement of more than 100,000 specified at section 29(1) should be repealed. Under the proposed new optional licensing scheme, it should for individual licensing authorities to determine whether there should be exemptions for larger businesses, and if so, what the level of turnover should be.
Itinerant Metal Dealers
4.3 The Task Group also sought views on whether there is a continuing need to license itinerant metal dealers and if so, whether this scheme should remain mandatory. The response from consultees was again mixed, though it was clear from the response that there are now very few licensed itinerant metal dealers in Scotland, and some licensing authorities do not have any such licence holders. Consequently, we considered whether there would be merit in abandoning the separate licensing scheme for itinerant metal dealers and creating a single licence, applicable to both itinerant metal dealers and premises-based dealers. However, we recognised that the two types of licence are quite different. Premises based metal dealers are largely scrap yard operators and as such operate a very different type of business to itinerant metal dealers. The licensing regime for premises based businesses is very different with considerations having to be given, for example, to fire safety provisions and noise levels. Itinerant metal dealers, on the other hand, will travel to buy and sell scrap metal, and will not store that scrap metal on premises. The activity is quite different, and the main purpose of such a licence is to prevent crime. Although these differences could possibly be addressed through the conditions attached to such licences, our preference was for separate provisions to remain. For the same reasons as metal dealers, we consider that any licensing requirement should also be optional. Consequently, if an itinerant metal dealer wishes to work in any area which requires such a licence, then it will be incumbent on them to ensure that the necessary Scotland wide licence is obtained from such an authority.
Recommendation
The Task Group recommend that the existing separate licensing provisions for itinerant metal dealers should remain in place, but that, in line with the proposals for premises-based metal dealing, the licensing requirement should be optional.
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