Scrap metal dealers and motor salvage operators in Plymouth are being warned they need to apply for a new licence next month as part of a national crackdown on metal theft.

The Scrap Metal Dealers Act 2013 comes into effect on 1 October and makes it an offence for any scrap metal dealer, including collectors, to buy scrap metal for cash.

Dealers will have to keep detailed records for receiving and disposing of metal, such as the verification of a seller's name and address, description of the metal and vehicle registration numbers. This will ensure that shipments are traceable when the police are investigating incidents of theft.

Under the new legislation there will be two types of licence:

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• A site licence: all sites with a scrap metal yard have to be identified and the site manager named. This licence will also allow the holder to transport scrap metal to and from their yard from any other neighbouring council area.

• A collector's licence: this will allow the holder to operate as an itinerant collector in the area of the issuing local council, in this case Plymouth, but not beyond the city's boundaries. They would have to apply for separate licences for each council area they want to work in.

There are currently 21 scrap metal dealers or itinerant collectors in Plymouth registered under the Scrap Metal Dealers Act 1964, which has no registration fee. There are seven motor salvage businesses – who dispose of write-off vehicles and can sell or reuse parts – who pay a fee of £81.50 for three years.

Now all licensed or unlicensed dealers have to apply for a licence, which will last for three years. Applicants have to pay £305 for a site licence and £225 for a collectors licence.

Those applying will have to satisfy the Council as the licensing authority they are a 'suitable person' to carry on a business as a scrap metal dealer. This includes a requirement for a criminal records check. Under the act, the Council and the police will have new powers to enter and inspect premises, to refuse licences and closure powers.

(CD/MH)