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Cash for scrap ban a win for legitimate recycling businesses

29 May 2018

Vehicle theft in Victoria has taken a hit, with the announcement that cash payments for ‘scrap metal’ will be banned, says the Victorian Automobile Chamber of Commerce (VACC).

From 30 May this year, dismantling and recycling businesses will be required to pay for all vehicle scrap by electronic funds transfer (EFT), a non-transferable bank cheque not made out to cash, or e-currency.

Vehicle thieves and those ‘businesses’ aiding and abetting their crimes will now have to deal with a paper trail leading back to their respective doors. Further, greater entry powers for Victoria Police to enter and inspect businesses believed to be illegally trading are also to be announced.

“These tough new regulations make it that much less attractive for criminals to steal vehicles from hardworking Victorian motorists, as the ‘distribution’ loop has now been closed,” said VACC Executive Director, Geoff Gwilym.

“From now on, Victoria Police and Consumer Affairs Victoria have an audit trail available to them. If disreputable dismantling and recycling businesses choose to make cash payments for vehicles then they are in breach of the law, and the authorities have greater powers to punish offenders.”

Mr Gwilym said that this is a win for law abiding Victorian motorists and for the many legitimate dismantling businesses operating in the state, who now can compete for stock and operate on a level playing field, now that the illegal element will be weeded out.

“Victorian motorists have been the victims of a high profile spate of thefts, including violent home invasions. Thanks to the good work of Victoria Police, Consumer Affairs Victoria and VACC, motorists can now breathe easier, knowing that one of the main outlets for this crime has been closed,” said Mr Gwilym.

The VACC Executive Director paid special tribute to Victoria Police Assistant Commissioner, Steve Fontana, and the Minister for Police, Lisa Neville.

“The Assistant Police Commissioner and Minister for Police went above and beyond to protect Victorian motorists and should be duly recognised. VACC thanks them immensely for assisting and collaborating with VACC’s three-year campaign to have cash for scrap payments banned from 30 May 2018.

“VACC intensified its lobbying in the 2015 Victorian law Reform Commission (VLRC) inquiry into the infiltration of organised crime into licensed industries. VACC was the only organisation that entered submissions and in-camera interviews to the VLRC Review. We thank the VLRC for agreeing with the VACC position on banning cash payments for scrap,” said Mr Gwilym.

VACC has requested that any advertising for the collection or sale of scrap by dismantling businesses should have that business’ Licensed Motor Car Trader (LMCT) or Second Hand Dealers’ licence details clearly stated.

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