The demand for scrap metal has led to a £23* million black market in the north west, according to estimates from the Environment Agency. The illegal movement and disposal of end of life vehicles is having a detrimental effect on the legitimate metal recycling sector, and increasing the risk of environmental damage.
The financial loss is caused by illegal or unregistered operators, including sole traders, who pick up cars from householders without being registered to transport or process them. This means that the regulated operators lose out on business and income.
As well as threatening the regulated metal recycling sector, the illegal trade is also affecting the region’s environment. Cars contain potentially dangerous and polluting substances than can harm the environment. When cars are illegally disposed of, there are no checks as to what happens to the polluting substances. They can end up in drains or being burnt or left to contaminate the ground
The Environment Agency licenses operators to clean-up end of life vehicles, removing these harmful substances and ensuring they are dealt with properly. This facilitates recycling and helps to protect the environment.
The Environment Agency is running a sustained campaign in the north west to tackle illegal operators. We are working in partnership with trade associations, police forces and local authorities in the region to identify illegal operators, reduce fly-tipping of vehicle parts and hazardous waste being transported illegally.
Operators who hold permits as authorised treatment facilities, and waste carriers are being encouraged to check their suppliers have the necessary permits, and report any suspicions to the Environment Agency.
Anyone dismantling or storing waste vehicles containing hazardous substances or components without the necessary permit could face a maximum penalty of up to £20,000 and/or six months imprisonment.
Bill Darbyshire, Environment Manager for Greater Manchester said: “The transportation and disposal of end of life vehicles by non permitted operators is having a detrimental environmental and economic impact in the north west. At this time of economic slowdown, it is concerning that our region could be losing such a huge amount of money. We simply cannot allow the illegal transportation and disposal of end of life vehicles continue. We are working closely with trade associations, local authorities and the police to build up intelligence, which will assist in prosecutions.
“In addition, we are encouraging permitted operators to check the credentials of anyone supplying them with vehicles, and report any suspicions to us.”
Note to Editors
- *Estimates are based on data from a six month study that was carried out in Merseyside in 2007 “Operation Purple”. The estimated number of cars disposed per year per head of population is based on this work.
- Population data was taken from 2001 census.
- The estimates are based on a high and low range estimate of gross car values and have been collected and moderated by industry sources. They range from £127 to £290 per car. This is based on the value of parts, residual metals and other valuable components, such as the catalytic converter that can be sold on. It does not take into account operational costs.
- Nationally, two million cars were scrapped, but only 762,776 certificates of destruction were issued some three years after the regulations became mandatory. Baroness Byford, Hansard 24 May 2007 (pt 0009)
- Breakdown of figures across the region:
|
Area
|
Value of lost business (millions)
|
|
|
Minimum
|
Maximum
|
|
North West region
|
£10.3
|
£23.7
|
|
Cheshire
|
£0.7
|
£1.7
|
|
Cumbria
|
£3.8
|
£8.7
|
|
Greater Manchester
|
£1.7
|
£4
|
|
Lancashire
|
£2.1
|
£4.8
|
|
Merseyside
|
£1
|
£2.3
|
