Regina Doherty (Meath East, Fine Gael)
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I thank the Acting Chairman for the opportunity to speak on this topical issue, which was prompted by a recent meeting I had with a constituent at a jobs launch. I was admiring a ring on her finger when she informed me that it was the only piece of jewellery she owned following a break-in at her home. The reason it was the only piece she had left was that she was wearing it on the day thieves broke into her house and took every piece of her jewellery.

We all know that gold is a classic safe-haven investment, and demand has been strong amid the global economic turmoil we are experiencing. The value of gold jewellery is now driving criminal activity because it can be turned easily into cash. We have all become aware of the anecdotal reporting of increased criminal trade in the sale of stolen goods, jewellery and scrap metal. We have seen a large increase in the number of cash for gold advertisements on our television screens, in our newspapers and on lampposts. Such businesses are littered up and down the country, and often no identification is required to obtain money in exchange for gold. This new outlet for burglars wishing to sell stolen goods has led to some increasing the number of burglaries they carry out in which they specifically target jewellery for quick resale.

Increasingly, consumers are looking to sell unwanted or broken jewellery to cash for gold smelting firms and pawnbrokers to raise some badly needed funds. Sellers can head into a cash for gold store, offer their jewellery without being asked for information that identifies ownership, and walk out with a cheque or cash. The goldis melted down quickly, leaving nothing for police to trace. While most of these outlets are run responsibly, a small number of them are being used by burglars to quickly sell stolen goldjewellery forsignificant sums of money.

At the launch of the report on the cash for gold trade in June 2012 the Minister for Justice and Equality, Deputy Shatter, observed: "There must be a targeted, proportionate and balanced response by Government to ensure that opportunities for criminals to obtain cash for stolen gold and other precious metals are eliminated whilst not affecting legitimate trade because of the criminal actions of a few." The key findings of the report were that the Garda had visited all 124 known cash for gold traders, that there was a significant level of public concern, and that most of the metals were usually melted down. The report stated that while criminal law was adequate and law enforcement had been strong, there were grounds for considering controls on purchase, including identification of the seller, identification of the item, a retention period before resale, and detailed records of all transactions.

On whether we can do more, it is arguably inconsistent that there are specific rules and regulations that apply to pawnbrokers for the protection of the public and to assist the Garda while similar appropriate and adapted rules and regulations do not apply to cash for gold outlets. Second-hand trade is not regulated legislatively in Ireland, with the exception of pawnbroking. However, pawnbroking is not the same as the cash for gold business, which currently is not registered and not specificallylegislated for.

Above all,the primary issue is identification,both of the person selling and of the object he or she is selling. Tied to that is recording of details by dealers. A secondary issue is valuation of goods. Pawnbrokers must keep a record of the people who provide them with goods and their address. If a pawnbroker receives such goods knowing that they are derived from an offence, that can give rise to a criminal prosecution. I would like to see that replicated in the cash for gold market.

A recent initiative in the north of England was the setting up a voluntary code of conduct, called the GoldStandard, to which traders of precious metals can sign up. This scheme will tighten security measures at pawnbrokers', goldtraders' and jewellers' shops to restrict the opportunity for robbers and burglars to sell on their stolen goods. It aims to reward and support reputable traders while helping the police to identify anyone who might trade in stolen goods. The goal is to make it easier for victims and the police to track down stolen merchandise and to eliminate what has become an easy payday for criminals, although someone signing up would have to demonstrate that they took the details of each person who sold precious metals to them. Initiatives such as that could go a long way towards reforming the poorly regulated cash for goldsector and bringing peace of mind to those fearful of selling their gold legitimately or those who keep their precious jewellery, which often holds far more sentimental value than any cash remuneration they could ever have, at home.

Seán Sherlock (Cork East, Labour)
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I thank Deputy Doherty for raising this important matter. I am speaking on behalf of the Minister for Justice and Equality, who regrets he is unable to be present as he is in Dublin Castle in his capacity as Minister for Defence.

I can inform the Deputy that on 19 June 2012, the Minister published a report on the criminal justice aspects of the cash for gold trade, which was prepared by his Department. The Minister has formally requested the Oireachtas Joint Committee on Justice, Defence and Equality to consider the content of the report, obtain the views of all relevant interested parties and make such report and recommendations to the Houses of the Oireachtas and to the Government as it deems proportionate and appropriate in the public interest. The Minister understands that the committee has sought views from stakeholders and he is awaiting receipt of the committee's report following the conclusion of the committee's deliberations.

In publishing that report, the Minister noted the concerns that members of the public had expressed about the proliferation of cash for gold outlets throughout the State. The informal purchase of jewellery is not specifically regulated in criminal legislation. However, the circumstances under which jewellery is being bought or sold may indicate the commission of certain offences, such as handling of stolen property or possession of stolen property under sections 17 and 18 of the Criminal Justice (Theft and Fraud Offences) Act 2001. The report indicated that these provisions were adequate to deal with any such offences that may be committed in the cash for gold situation.

The report also highlighted the actions undertaken by An Garda Síochána in consultation with the Minister's Department. All cash for gold premises in the State were visited by An Garda Síochána and the operators made aware of their responsibilities and obligations under the law with regard to the purchase of gold and other items of jewellery. Garda contact information provided to operators will facilitate the reporting to the Garda Síochána of any suspicious activity. The Minister, in publishing the report, congratulated the Commissioner of An Garda Síochána for his prompt and proactive response to this matter.

The Minister has stated that it is arguably inconsistent that there are specific rules and regulations that apply to pawnbrokers for the protection of the public and to assist the Garda while similar appropriate and adapted rules and regulations do not apply to cash for gold outlets. It is in this context that the need to explore the issue of evidence of ownership of gold and jewellery items, such as photo ID and other evidence of ownership mentioned by the Deputy, is referred to in the report and no doubt will be the subject of attention in the course of the Oireachtas committee's consideration of the issue.

There is a requirement to examine carefully the resource implications of any role envisaged for An Garda Síochána in proposed new regulatory steps. In addition, in framing any necessary measures in respect of cash for gold shops, it is important to ensure consistency in their application in so far as they would also apply to other retail outlets that may trade in second-hand gold items, such as jewellery and antique retailers. However, the Minister is of the view that it is important to avoid creating unnecessary form-filling, expense and bureaucracy for legitimate businesses that makes no significant contribution to law enforcement or the protection of the public generally.

Regina Doherty (Meath East, Fine Gael)
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I thank the Minister. I appreciate and acknowledge that it was the current Minister who initiated the report and that the Garda provided it in an exceptionally timely manner with very good recommendations, all four of which are eminently doable. The reason for my frustration is that although the report was sent to the Joint Committee on Justice, Defence and Equality last June, it is now February, and even if the committee were to produce a report tomorrow it would take it a considerable amount of time to draw up the heads of legislation and put in place the IT systems that would be required to capture the data by both the cash for gold shops and the Garda.

The backdrop to all of this is the increase in the number of burglaries. The items that are being targeted directly by criminals are items of jewellery and easily sellable household items.

While I understand that the political process is slow, I believe that the longer we procrastinate, the more time and space we will give criminals to obtain money from the ordinary people. It is not fair. I ask the Minister of State to write to the Joint Committee on Justice, Equality and Defence to ask it to wrap up and make recommendations, which I know will not be any different from those in the report of last June. Let us get our skates on and show the criminals that we mean business. In the meantime, I will liaise with the voluntary organisations and those who run legitimate businesses and want to continue with a view to putting a voluntary code of practice in place until legislation is introduced. Let us do this sooner rather than later.

Seán Sherlock (Cork East, Labour)
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I ask the Deputy to forgive me for having a prepared response because the Minister is not present to respond. On behalf of the Minister, I thank the Deputy for availing of the Topical Issue procedure for raising this important issue. I assure her, on behalf of the Minister, that her constructive remarks and suggestions will be noted.

The Minister looks forward to the Oireachtas committee's response to the issues raised in his departmental report on the cash for gold sector. With regard to burglaries, the Minister welcomes the progress being made by An Garda as part of Operation Fiacla, which is focused on identifying and targeting gangs involved in burglaries. Operation Fiacla is intelligence driven. As part of the operation, specific burglary initiatives have been implemented in each Garda region to target suspect offenders. As of 21 January 2013, 3,903 persons have been arrested and 2,142 persons have been charged as part of the operation, showing that the Garda Commissioner is effectively deploying the substantial resources available to him. Furthermore, the latest quarterly figures for burglary, by comparison with those prior to the operation's introduction, suggest the operation is having an impact.

While it is clearly no consolation to those who have had to endure dreadful experiences at the hands of gangs of burglars, it is none the less important to mention that the most recent crime figures show that the number of aggravated burglaries has decreased by over 17% on the previous 12 months. The Garda response to such crimes is robust, and gangs and individuals involved in burglaries are pursued with determination and effectiveness.

With regard to cash for gold operations, it is important that there be a targeted, proportionate and balanced response by the Government to ensure opportunities for criminals to obtain cash for stolen gold and other precious metals are eliminated while not affecting legitimate trade because of the criminal actions of a few. The Minister has indicated that the objective of any actions must be to ensure such businesses are not unknowingly open to abuse by criminal elements.