THE boss of a leading recycling company in Brierley Hill fears funding cuts could reopen the black market in metal.

Funding for the British Transport Police-led national metal theft taskforce will run out in October and industry chiefs fear crooks could move back in to the market if metal crime has a lower profile.

The taskforce has overseen the enforcement of new laws which are being credited with cutting metal theft and dealing in stolen metal by nearly 50 percent, but next month the £6.5m set aside to pay for the taskforce runs out.

Andrew Jones, managing director at Mason Metals in Two Woods Lane, said: “The success of the legislation and local policing in reducing crime figures cannot be questioned – but without continued high profile policing I share the British Metal Recycling Association’s fear of a return to black market cash deals and rising crime figures.

“Higher penalties, fines and sentences are only a deterrent if people get convicted. A return to mass unregulated trade would be major step backward and a threat to our future.”

The new Scrap Metal Dealers Act 2013 requires all dealers to be licensed and keep proper records, sellers must provide photographic ID and be paid either electronically or by cheque.

Graeme Carus, deputy president of the British Metals Recycling Association, added: “The complex regulations embedded in the 2013 Scrap Metal Dealers Act need to be effectively policed if we are not to see a further proliferation of illegal dealers paying cash for metal, providing an outlet for stolen metal and fuelling an unwelcome growth in metal theft.”

An advisor to the All-Party Parliamentary Group on Combating Metal Theft also has concerns about the end of the multi-agency taskforce.

Tony Glover, director of policy at the Energy Networks Association, said: “We hope that with its demise police forces across the country will continue to focus on the crime through their own metal theft units.

“If not then there is a real danger that the falls in metal theft crime we have seen since the new legislation will be reversed.”

Taskforce leader Superintendant Alison Evans, from British Transport Police, said: "Although funding for the taskforce will end in October, many forces will retain dedicated metal theft teams”.

“Frontline officers across the country are now better informed regarding metal theft, and the tactics advocated by the taskforce have been adopted as business as usual.”

Detective Inspector Jamie Checkland, the West Midland's Police regional metal theft co-ordinator, said: "The aim of the taskforce was to tackle the growing problem of metal thefts, which reached its peak in 2011.

"The funding from the taskforce allowed us to allocate specialist officers to run targeted operations, improve intelligence gathering and implement practices aimed at disrupting thieves and rogue metal traders in the West Midlands.

"These actions have led to around a 63% reduction in metal thefts since 2012 and many of these practices have now been absorbed into our day-to-day policing activities. In addition, this industry is now regulated through a comprehensive licensing regime managed by local authorities, the Environment Agency, the police and other partners.

"We are committed to continuing the good work initiated by the taskforce and metal theft will remain a priority for the force, especially in the Black Country where metal still plays an important role in the local industry. To further demonstrate that commitment, Chief Inspector Phil Dolby from Dudley Police Station has recently been appointed as the new force lead for metal theft to ensure this excellent momentum is maintained."

Chris Kelly said: “I recognise the serious impact metal theft can have on both national infrastructure and on local communities. It is for this reason that I support the Government’s efforts to crack down on the trade in illegal scrap metal trading.

"It is estimated that metal theft costs the UK economy around £220 million a year and it has a huge impact on our communities - from disrupted rail services to desecrated war memorials and damaged church roofs.

“I’m pleased that the Scrap Metal Dealers Act is now in force. The changes made by the Government, and which came into force last year, clamp down on rogue traders, give local authorities and police new powers to inspect premises where they suspect illegal activity, and require legitimate scrap metal dealers to be licensed.

“From October this year, the enforcement of the law on this issue will become the responsibility of individual police forces based on their local crime priorities. I hope that Chief Constable Chris Sims will recognise its importance amongst his list of other, competing priorities.

“The Chief Constable is aware of my views on the subject. As I have said in the Commons previously, law breakers in this area are often also law breakers in other areas (tax/duty evasion, other forms of theft and crime, etc) so well worth investigating.”