Victoria Police gets new search powers, cash scrap payments banned, under laws to tackle stolen car rackets

POLICE will get power to search scrap metal yards without a warrant in a crackdown on stolen car rackets beginning this week. Cash payments for metal are also banned — but not everyone is happy.

POLICE will get power to search scrap metal yards without a warrant in a crackdown on stolen car rackets beginning Wednesday.

Scrap dealers who accept or make cash payments for metal will face fines of more than $30,000.

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But some in the industry labelled the changes “ridiculous”.

New laws aimed at tackling organised crime will hand police the extra search powers.

New laws will make it illegal for scrap dealers to make or accept cash. Picture: File

Victoria Police Assistant Commissioner Bob Hill told the Herald Sun: “Under the new legislation, police will have the authority to enter a business or storage premises to inspect goods without warrant if there is reasonable belief that it is dealing in scrap metal.”

“These changes will provide police with the powers needed to effectively target criminals who are involved in stealing or disposing of stolen vehicles through the scrap metal industry,’’ Mr Hill said.

Victoria Police and the Victorian Law Reform Commission had identified the scrap metal and vehicle recycling industries as vulnerable to infiltration by organised crime.

Cars have been a target during Victoria’s spate of home invasions and carjackings an ongoing concern.

The new laws aim to crack down on cars being offloaded through organised crime. Picture: File

Scrap dealers will have to keep detailed records to ensure every transaction is traceable and will be banned from possessing or trading an unidentified vehicle.

As well as huge fines for dealing in cash, police will be able to issue operators who flout the laws with on-the-spot penalties of more than $1900.

Police Minister Lisa Neville says the changes will disrupt crooks. File image

All will have to register as second-hand dealers, which requires checks on their criminal history and any insolvencies.

“We know that scrap metal is a major source of revenue for organised crime,’’ Police Minister Lisa Neville said.

“These reforms will prevent the use of cash and disrupt criminal behaviour.

“(They) make it harder for criminals to make quick cash by disposing of their illegal goods through the auto-wreckers and scrap metal dealers.”

Consumer Affairs Minister Marlene Kairouz said: “New offences, detailed record-keeping requirements, stronger penalties and compulsory registration will give the community confidence the government is taking action to clean up the scrap metal trade.”

But scrap metal manager Derek Farquhar said the laws, similar to those used in NSW, wouldn’t reduce organise crime and could encourage underground cash operations.

Cars rarely came into scrap yards because their metal was typically worth just $100 to $200, he said.

“It’s insignificant,’’ Mr Farquhar said.

“To go after cash for scrap to say that you are tackling profit-motivated vehicle theft is just ridiculous.”
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