Contributions from: David Mortimer, Jethro Wookey
More from: Big Question: Setting the scene
Jethro Wookey, senior correspondent metal bulletin
There is a strong argument among market participants that the implementation of the SMDA will benefit larger scrap dealers and could well lead to more consolidation in the industry as small, independent merchants are absorbed by bigger companies with systems already in place.
The impact of the cash ban on scrap collection may be limited as many scrap dealers have already opened cheque-cashing services on-site.
David Mortimer, managing director of L & B Mortimer
The biggest problem is for price of the collector’s licences. It will put a lot of the small collector’s off registering. I don’t know whether that will affect our business. Another problem is for cheques costing as much as the metal is worth. Some people bring in a bag of aluminium cans worth 80p, but it costs 70p to issue a cheque.