Raids find dealers dodging laws

More than half the Wellington secondhand dealers raided in a police operation have been found to breach recently introduced legislation.

Police say they will continue to target secondhand dealers after the raids in an attempt to drive shonky operators out of business.

More than 50 dealers were raided to check compliance with the recently introduced Secondhand Dealers and Pawnbrokers Act.

The act gives police the power to search dealers' premises without a search warrant.

It requires dealers to tighten up their recording procedures to make it harder for thieves to pass off stolen goods; and it concentrates on high-risk goods such as consumer electronic goods.

Anyone convicted of breaching the act can be fined up to $20,000 and lose their licence to trade

Last week's raids were the first test in Wellington of its effectiveness.

Detective Sergeant John Michael, head of the Wellington city burglary response team, said the purpose of the raids was to get rid of shonky secondhand dealers, long seen as a haven for stolen goods.

"We see this as taking the first steps to prosecute and ultimately shut down rogue traders."

Some had found the new regulations too much to handle and had indicated they would close down. Others were scrambling to bring their recording systems up to scratch.

Constable Paul Ferguson, who has worked with Wellington secondhand dealers for about a year to familiarise them with the act, said there was no doubt the law would be effective in shutting down rogue dealers.

"Now it requires people to do certain things, and people are jumping ship. You've got to ask yourself why."

It was disappointing to see such a high rate of non-compliance in the raids, Mr Ferguson said.

While most had committed minor breaches, such as not recording a seller's date of birth, some had not provided a full description of the seller or what items they had been sold by them.

However, many of the more established players had accepted the act in good faith and moved to tighten their procedures.

Some had gone further than the act required and started taking photos of those selling goods.

The act specifies only certain types of photographic identification can be accepted by dealers.

If dealers suspect they are being offered stolen goods for sale, they must notify police immediately.

Police had so far targeted dealers in consumer electronic goods, but others would also be visited in the future, Mr Ferguson said.

They are still considering whether to lay charges in light of the raids.

- NZPA