Tackling Copper and Scrap Metal Theft in South Australia

I have had opportunities to buy scrap metal from businesses and they all prefer cash payment often this money I have paid goes back to the workers of these businesses as bonuses gifts or work shows. Happyntonshownproof of purchase but my clients prefer cash. I find that running antiques and collectables along side some scrap metal being paid in cash helps me attribute the cost and profit to the right places so to speak. The scrap yard I use has my details on file so the police can easily check up with me.
I would be conceded that if I needed a licence what measures or regulations will I be expected to meet? If I am doing a little bit is cable stripping or storage of non ferous I don’t need to have the same level of environmental regulations as those who process cars electronics etc.
Not everyone is a thief in this industry yet that is how the honest hard working entrepreneurs are going to be treated if this goes through.
Proof of purchase should be a thing if you aren’t a regular scrap yards would know whether you are selling stolen product or not.

Scrap metal recycling services should be available to all. Private or business should be able to recycle materials without restriction to do so with what ever choice of payment they want to use. There are legitimate people out there that collect scrap metal for a bit of extra cash especially in the current economic climate.

Physical cash should always be an option because a EFT may not be an option for groups that recycle metal to raise some money for Christmas funds etc. Plus EFT is not as reliable as a payment service when power goes out or internet issues arise.

It is fair to expect to have your details recorded with what is recycled and the weights and types of the material recycled. To have your details attached to the washing machine, car body, old wire, vehicle hoist etc will help in theft investigations even if the scrap merchant has to upload the details to an online portal daily that police have access too. This will then show that they bought 2 tonne but when they sell 3 tonne then questions can be asked. These measures may be in place already but the penalty for people doing the wrong thing may not be high enough. If caught doing the wrong thing the scrap merchant and customer should be dealt with accordingly making it not worth the risk of committing the crime. Having enough police/law enforcement to monitor and enforce the rules would also be the biggest issue. I am sure there are lots of rules and regs that the merchants follow but not enforced enough due to lack of resources.

Don't punish the majority doing the right thing to affect the minority doing the wrong thing.

In summary, keep all payment options (Cash, EFT etc), recording of customers, metal types and weights, more resources to enforce current and future laws to minimise thefts and harsher fines for people doing the wrong thing, no slap on the wrist and on your way.

We operate a long-standing recycling business, which includes scrap metal. While we commiserate with builders who suffer metal thefts, we need to emphasise that recycling yards are not the criminals in this instance, and yet it appears that we are to be the focus of measures to limit such thefts. Scrap metal yards are also victims of theft too.
LICENCING: most scrap metal yards are run in conjunction with bottle and can recycling depots, which are all licensed by the EPA. We are not second-hand dealers. The matter of second-hand dealers licences for our operations has been addressed by governments in the past. Second-hand dealer licences for waste handlers were found to not be appropriate, as the materials we deal with are not second-hand items. They are recovered resources which are sent away for processing.

LEGISLATION ALREADY EXISTS: Many people would not realise that there are already legal measures in place under Taxation and Federal police legislation which cover any purchases made by a second-hand dealer or recycling yard for a value over $82.50 including GST. Signed declarations are required from any person who sells anything to a recycling yard, stating the name, address, drivers licence number etc. of the person selling the recyclables, whether scrap metal, bottles and cans or anything else. The drivers licence needs to be sighted by the receiver of the material. The declarations need to be kept for a number of years. There is nothing that further legislation can do which is better than this. Our own yard, and probably most others, have CCTV camera systems in place with back up recording. We make these recordings available to police who come to our yard asking about scrap metal which we may have received. This includes old cars which have been bought as scrap metal. Again, we are not second-hand vehicle dealers, we buy metal, not cars.
EXISTING CODE OF COMPLIANCE: In 2006 a Federal Code of Compliance for the Scrap Metal Industry was developed. At the time, many, maybe all, scrap metal yards in SA were audited by a combined taskforce of the ATO and the Federal Police. This included comprehensive visits by federal agents, and scrutiny of our records.
HOW WILL PROPOSED MEASURES WORK: In relation to some of the proposals suggested to tackle metal theft, we ask:
How will draconian legislation work for members of the public who want to get a bit of cash for their old pots and pans, taps etc., or who spend their time stripping the PVC off of their old power cords?
Will there be a threshold in value before purchases of scrap metal need to be reported?
What infrastructure will be required to comply with the reporting, and who will provide/pay for that infrastructure?
If payment for scrap metal is deemed to be only possible by electronic payment, what will happen in the event of a power outage? If such an outage only effects a local area, and the recycling yard is not allowed to pay in cash, they will lose the custom to a yard in another area which has power.
Many recycling yards employ young people on their driveways to assist members of the public, including paying out of money. If payment is to be by eft only, we fear the possibility of potentially large and irrecoverable payment errors being made, to the detriment of the buyer and the seller.
BUILDERS RESPONSIBILITIES: Lastly, could builders do something to protect themselves, just as recycling yards do, e.g. high fencing, movement sensor lighting, CCTV systems with backup recording?
Thank you for your consideration.

I run a National Award Winning building company building top end housing. We have suffered multiple copper thefts and will back any move to see the scrap metal industry regulated.
Please feel free to contact me if required.
Bruce
Millwood Homes SA
0419 826 753

Yes copper theft is a huge problem as is all theft across the board.
cost of living is driving a surge in theft for everything, look at supermarkets and bottle shops constantly being ripped off, should we make people produce ID before they enter stores and only accept electronic payments?
Most legitimate scrap yards require ID or business registration to sell copper and all scrap metal and take measures to not buy stolen material just like all business do
all the measures above have been tried overseas and interstate and copper theft is still high and, on the rise, the problem is the criminals not the buyers, the punishment for the criminals is minimal that is the problem, very little deterrence for them also drugs would be another major driver
all responsibility is put on owners of the material being stolen to secure it and on the scrap metal buyers,
and when copper is stolen from scrap yards and reported to police and video evidence shown and the scrap yard owners are told there is nothing, we can do who is responsible for that?

this is a money grab again, another license fee for small business,
cause angst by customers in rural remote areas that bring in scrap from their homelands. no access to banks etc
agree with having more sellers identification requirement for sale of copper or high valued scrap material to validate if stolen.
if scrap dealers need to be licensed will this stop back yard operators, this hasn't been the case previously and will it be enforced or another failed attempt at the detriment of scrap dealers already in business.
this is going to be hard to police, we have theft problems from scrap metal dealers yards, how is this going to help.
more paperwork, legislation to what end.
Dazza

Agree with discussion paper. Should also stop transfer of scrap inter and intrastate and overseas except by approved companies with appropriate documentation. Should also have mandatory reporting of dodgy requests to sell scrap and maybe require video coverage of all transactions.
Also what checks are made on scrapping vehicles and industrial equipment. Once compacted no one can tell what it is.

1. Licence the scrap metal dealers.
2. Strict seller verification: require valid identification.
4. Require proof of ownership: Sellers should provide receipts, invoices, or other documentation showing they legally acquired the copper, such as purchase records from suppliers or contractors and photographic evidence of the copper material and its source.
3. Keep records of transactions.
4. Ban cash payments for copper scrap and mandate electronic or traceable payment methods to deter illegal sales
5. Asset owners can use various methods to mark or identify copper such as microdots, chemical or other methods for tracing.
6. And if all else fails, up the voltage of the electrical wires.

Licensing of scrap metal dealers would be of benefit. Anyone with scrap metal should have to have ID that is recorded at the time of claim. Items like catalytic converters should only be accepted from licensed automotive recyclers stopping the theft of these items for profit.

There must be tighter Regulations on Scrap Metal Dealers and sellers:
- Scrap metal dealers must be registered with the government and obtain a licence to operate. Only people with a clean Police Record concerning theft, fraud and violence would be permitted to hold a licence. Dealers must be held to account.
- Mandatory recording of all transactions, which includes detailed records of the source of the copper, the seller's identification, and the transaction date.
Enhanced Identification Requirements:
- Require sellers of scrap copper to provide 100 points of valid identification (as per Centrelink and the banks) and proof of ownership for the materials being sold. This could include a bill of sale or other documentation that verifies the seller's right to sell the copper or other metals.
- For all sales above $100.00 there should be a cooling off period of at least two days before funds from the sale are paid to the seller (by whatever method), so that Police or inspectors could track reports of stolen materials.
- Harsher penalties for individuals caught stealing copper must be implemented, including those who knowingly purchase stolen copper. This could include longer prison sentences and much higher fines (to at least 10 times the value of the stolen goods).
- Campaigns to educate the public about the consequences of copper theft and the importance of reporting suspicious activities must be funded. This would include posters at the point of sale, social media and other advertising.
- Ensure that only licenced scrap metal dealers are able to sell on to the companies that process/recycle the metals. Make sure that these companies also keep tight records including sighting the dealer’s licence and proof of id for the employee who is dropping the metals off to the processor/recycler.
- Provide a separate dobbin line and email address so that people with knowledge can report suspected activities quickly. Partner with local councils, Police, and scrap metal dealers to share information about theft patterns and suspicious activities.
- Audit scrap metal dealers regularly and without notice to ensure compliance with regulations and to identify any potential illegal activities.

Stricter Regulations on Scrap Metal Dealers:
- Require scrap metal dealers to register with the government and obtain a licence to operate. This would allow for better oversight and accountability.
- Implement mandatory reporting of all transactions, including detailed records of the source of the copper, the seller's identification, and the transaction date.
Enhanced Identification Requirements:
- Mandate that sellers of scrap copper provide valid identification and proof of ownership for the materials being sold. This could include a bill of sale or other documentation that verifies the seller's right to sell the copper.
Cooling-off Period for Transactions:
- Introduce a mandatory cooling-off period during which scrap metal dealers cannot sell or process copper received from sellers. This would allow law enforcement to investigate suspicious transactions.
Increased Penalties for Theft and Trafficking:
- Implement harsher penalties for individuals caught stealing copper, as well as for those who knowingly purchase stolen copper. This could include longer prison sentences and higher fines.
Public Awareness Campaigns:
- Fund campaigns to educate the public about the consequences of copper theft and the importance of reporting suspicious activities. This could involve collaboration with local councils and community organisations.
Collaboration with Law Enforcement:
- Establish partnerships between local councils, law enforcement, and scrap metal dealers to share information about theft patterns and suspicious activities. This could include regular meetings and updates on trends in copper theft.
Use of Technology:
- Encourage the use of technology, such as GPS tracking for high-value copper installations (e.g., streetlights, telecommunications infrastructure), to deter theft and assist in recovery efforts.
Community Reporting Mechanisms:
- Create a dedicated hotline or online platform for residents to report suspected copper theft or suspicious activity related to scrap metal sales. This could help law enforcement respond more quickly to incidents.
Incentives for Reporting:
- Consider offering financial incentives or rewards for individuals who provide information leading to the recovery of stolen copper or the arrest of thieves.
Regular Audits of Scrap Metal Dealers:
- Mandate regular audits of scrap metal dealers to ensure compliance with regulations and to identify any potential illegal activities.

Copper Theft has always been a problem for us , but has escalated out of control over the last 2 years.
As Electrical Contractors for builders we have had over 50 per cent of our installs ripped out of the ground , damaging SAPN pits in the process. We have put measures in place to try and stop this ie.
installing the day before SAPN energisation to no avail. The Copper thieves are now even taking them live.
It has definitely got to the point where something needs to be done ASAP before someone is killed and/or not to mention the extra work for an already labour starved industry.

Subject: Response to Copper and Scrap Metal Theft Discussion

As a director of a building company, I would like to express my strong concerns regarding the increasing issue of theft on our construction sites, particularly the theft of underground electrical cables and copper piping.

This issue has become a major problem across multiple sites, with criminals attaching underground electrical cables to vehicles and ripping them out entirely. Not only is this highly dangerous, but it also causes significant financial strain on builders who must repeatedly replace the stolen materials. Additionally, newly installed electrical wiring and air-conditioning copper piping are frequently stolen from homes under construction, further compounding the issue.

These thefts result in:

Increased costs for builders, as insurance excesses are too high to make claims viable.
Delayed construction timelines, impacting project delivery and financial viability.
Additional security expenses, as businesses must hire security guards to deter theft.
While these crimes are lucrative for the perpetrators, the real burden falls on builders, homeowners, and the broader community. Stronger measures must be put in place to address this issue.

I strongly support the proposal for a standalone piece of legislation to regulate scrap metal transactions. Key reforms that should be implemented include:

Stricter regulation of scrap metal dealers, including mandatory registration, probity checks, and licensing fees.
Prohibition of cash payments for scrap metal transactions (excluding aluminum cans) to reduce the ability of thieves to profit anonymously.
Mandatory identity verification and record-keeping for all transactions, including photographic evidence and weight documentation.
Digital transaction tracking to enable law enforcement to monitor sales and detect suspicious activity.
Increased police powers to inspect scrap metal dealer premises and issue closure orders for non-compliant businesses.
Harsher penalties for those found guilty of dealing in stolen scrap metal, including fines and potential imprisonment.
By implementing these measures, we can:

Reduce theft of electrical and data cabling.
Minimise disruptions to construction and essential services.
Improve safety for workers and the public.
Provide law enforcement with stronger tools to prosecute offenders.
I urge policymakers to take immediate action to address this growing issue and protect businesses like mine from ongoing financial and operational losses.

Sincerely,
Gary Dann
Managing Director
MyHomeBuild Pty Ltd
Ph 0411728268

The constant copper theft is a problem for residents. Twice in the past, someone stole the copper pipes from my house. Although the scrap value of the pipes is low, I still had to pay a plumber to repair them. Stricter rules are needed to curb the scrap metal trade. This will prevent unexpected problems for residents, giving them peace of mind.

I believe that scrap metal has always been in involve in cash business transaction. How do you controll it?
Payment by CC MAYBE THE SOLUTION
PHILIPPE