Thieves can no longer scrap stolen cars for cash in Victoria from May 30.
Cash for scrap cars has been officially changed so recycling businesses will only exchange cars for electronic funds transfer (EFT) or assigned bank cheque – both of which are easily traced by Victoria Police, Consumer Affairs and banks.
Victoria Police are now granted additional powers to enter and inspect vehicle recycling or dismantling businesses suspected of trading or profiteering on stolen cars.
The Victorian Automobile Chamber of Commerce has praised Victoria Police assistant commissioner Steve Fontana and police minister Lisa Neville for clamping down on the trade with reforms to the Second Hand Dealers and Pawnbrokers Act.
VACC executive director Geoff Gwilym says having an audit trail for authorities to track stolen vehicles will benefit the automotive industry and members of the Australian Metal Recycling Industry Association (AMRIA).
“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,” he says.
” 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,” Gwilym adds.
The VACC has been on a three-year campaign for the Victorian Law Reform Commission (VLRC) to quell the illegal trade.
” VACC was the only organisation that entered submissions and in-camera interviews to the VLRC Review,” Gwilym reveals.
“We thank the VLRC for agreeing with the VACC position on banning cash payments for scrap.”
The VACC now wants to see additional transparency with the compulsory display of Licensed Motor Car Trader (LMCT) business numbers or Second-Hand Dealer licence information stated on advertising for recycling businesses.
Minister for police Lisa Neville says the reforms that require tighter record-keeping, more severe penalties and registration will weed out wrong-doers.
“We know that scrap metal is a major source of revenue for organised crime. These reforms will prevent the use of
cash and disrupt criminal behaviour,” she says.
“These reforms make it harder for criminals to make quick cash by disposing of their illegal goods through the
auto-wreckers and scrap metal dealers,” Neville adds.
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