Turning scrap iron into gold

In the space of a few years, the scrap iron industry has moved from being worth $96 million in 2010 to one that today contributes more than $260 million to TT’s GDP, according to stakeholders and advocates. But the industry can go much further with the help of revamped government policies as well as a more serious approach from the State.

“This industry is the only one where a poor man can go into the bush and look for scrap iron and come to a yard and make a little money,” said president of the Scrap Iron Dealers Association Allan Ferguson in an interview with Business Day. “This industry is important.”

We concur with Mr Ferguson and support calls for the Government to finalise the process of drawing up a policy to revamp existing, dated legislation.

That the State has dragged its feet in relation to this sector is perhaps understandable given the serious concerns raised about it over the years, publicly and privately, sometimes even from members of the sector itself.

According to reports, scrap iron collectors have sometimes developed the habit of trying to ply stolen scrap to dealers. State entities such as TSTT, TTEC and WASA, have not infrequently alleged theft, by purported scrap iron suppliers, of copper wire, manhole covers, pumps and other items.

As recently as June, one individual was arrested by Port of Spain authorities and charged with being in possession of manhole covers and copper wire meant for illegal trade. More generally, scrap yard workers have sometimes had cause to turn away collectors because of suspicious circumstances.

But it would be a mistake for the State to pretend the industry does not exist. The sector is so active even foreign operators from India and China have now opened scrap yards here.

In fact, it’s precisely because of the concerns about the troubling aspects of the sector that the State should involve itself and regulate more through beefed-up laws and rules. This much is acknowledged by long-gestating, if not stalled, attempts by government ministries to get a policy revising the current legislative framework off the ground.

It should be remembered the scrap iron industry is a source of employment, particularly for people who might otherwise have difficulty finding work.

“This industry feeds thousands of people on a daily basis,” Mr Ferguson said. “(It) is an old industry which came out of the gold industry.”

In today’s world, the service performed by scrap dealers may well be regarded as policy gold: it is a form of waste management that reduces pollution while generating revenue, all the while encouraging people to dispose of waste in productive ways.

A proposal from scrap dealers to remove marine wrecks has the potential to make an even more meaningful impact, provided the Government looks favourably on it and provides basic infrastructural support.

There should be further assessment of the economic contribution made by the sector. But, in the end, scrap dealers might more than carry their economic weight.