Operation recover

Report: 11
Date: 21 February 2008
By: Director of Human Resources on behalf of the Commissioner

Summary

This report makes the recommendation for the MPS to revise its policy in relation to lost or stolen vehicles (found) by stopping the cost recovery scheme known as Operation Recover for operational and commercial reasons.

A. Recommendations

That:

1. Members endorse the cessation of Operation Recover on the grounds that the scheme has not realised the operational and commercial benefits envisaged during the pilot phase;

2. the charging policy be changed with effect from 17 December 2007; and

3. the policy in place before 2005, as outlined in paragraph 1, be reintroduced.

B. Supporting information

1. Prior to 2005 the policy in relation to MPS lost or stolen vehicles (found) was to leave the vehicle at the place of finding for the owner to recover unless:

• The vehicle had been involved in serious crime when it would be recovered for forensic and evidential purposes or
• The owner requested the recovery of the vehicle at their cost.

2. However, the requirement upon the MPS to improve performance to meet new Government motor vehicle crime targets, led TP (Volume Crime) to introduce Operation Recover, this being MPS code name for the obligatory recovery of abandoned lost or stolen motor vehicles.

3. The operation was designed to support the following objectives

• Reduce vehicle crime and improve detection rates
• Return stolen vehicles intact to their owners
• Reduce the levels of arsons of stolen vehicles left on the streets
• Reduce insurance costs and
• Reduce the levels of false reporting.

4. In meeting those objectives recovered stolen vehicles undergo forensic examination, to establish links with any criminal activity, all associated costs being met from the MPS Budget, supplemented by a £1m Government Expansion Scheme Grant secured by the Forensic Science Service Unit (SCD4) in 2001/2. The vehicle recovery and storage costs chargeable at the statutory rates are however met by the owner/owners agent.

5. Such an initiative to recover vehicles for forensic examination at cost to the owner/owner’s agent was first introduced by Kent Police in 2000/1. Kent Police reported an increase in sanction detections of up to 15% and consequentially 34 ACPO forces now operate similar schemes. The initiative has the support of the Home Office , its view being that the police services should not bear the recovery and storage costs of this activity.

6. The proposal to introduce Operation Recover was first reported to the MPA Finance Committee in November 2002 . Detailed information as to how it was to be funded (recovery & storage to be met by owner/owner’s agent at the statutory rates, increased forensic examination costs to be met in part by the securing of a £1m Government Expansion Scheme grant) formed a key element of the business case to establish and resource the Vehicle Recovery and Examination Service (VRES); recommendations were approved by the Committee:

•  “The development of a cost effective in-house vehicle recovery and storage service, to support the core functions of the MPS
• In principle agreement to lease up to four car pounds, one each in south, west, east and north London, the annual rental costs being met from income generation. Each car pound business case to be subject to a further report to the Committee for approval
• The leasing of the first car pound at the Angerstein Centre, Charlton for a period of 10 years (less 1 day)
• A budget virement in 2002/03 from revenue to capital expenditure, within existing provision, to meet the fit out cost of the vehicle examination suite and storage facilities at Charlton.”

7. It should be noted that the approval of the above recommendations was not only to meet the growth requirements of Operation Recover, but also to support the other MPS recovery requirements in relation to vehicles involved in collisions, concerned in crime for forensic and evidential reasons, seized under police powers or removed for parking offences.

8. Operation Recover was initially trialled in the Borough of Greenwich in 2003 with the following crime detection and environmental benefits:

• 146 vehicles forensically examined resulting in 22 positive identifications (15%)
• 7 arrests, which would have otherwise gone undetected, with a further 5 suspects circulated as wanted (8.2%)
• An estimated 50% reduction of abandoned/burnt out vehicles
• Improved Public Satisfaction.

9. As a consequence, Operation Recover was also rolled out from October 2005 to the London Boroughs of Greenwich, Lewisham, Southwark, Bromley and Croydon. Thereafter it was intended to expand the scheme pan-London on an incremental basis. Since implementation just over 2,500 vehicles have been recovered and forensically examined, resulting in 111 sanction detections (4.4%) from the forensic evidence obtained.

10. However, expansion of the scheme did not materialise because of the overall lower than expected detection rate outturns, and resource availability v competing demands on police resources.

11. The decision was therefore made by Commander Simmons (TP) and Diana Marchant (TP Business Manager) in liaison with Anne McMeel (Director of Strategic Finance) to suspend the charging policy on 17 December 2007. This decision was taken as a direct consequence of the concerns expressed by members of the MPA and until the matter of charging was debated at Committee. The decision to continue the recovery scheme with all associated costs being met by the MPS was taken to reduce the risks arising out of the sudden termination of the recovery contracts.

12. Since that date an MPS Gold Group undertook a further review of the operational and commercial benefits of the scheme, based on performance, competing operational policing demands, value for money and police/public relations.

13. Operation Recover has not yielded the increase sanction detection levels expected. This may in part be due to the fact that motor vehicle crime is a transient crime, whilst the scheme is operative in just part as opposed to the whole of London. To pilot the scheme pan-London where all associated costs would be met by the MPS (estimated at £1m per 10k vehicles recovered) could not be regarded as best value, particularly in the light of other competing operational demand.

14. In reaching that decision, account was also taken of the growing concern of some members of the MPA, the perception being the levying of charges upon victims of crime. VRES records show that 42 appeals were received of the 2500 vehicles recovered. The views of operation recover Borough Commanders were also sought as to the success of the initiative. Each provided anecdotal evidence of public dissatisfaction as to the charges levied. There were mixed views as to the operational benefits, with Greenwich Borough continuing to report a down turn in abandoned vehicles and arson attacks.

15. Account was also taken of the capital investment outlay on the two existing MPS pounds at Charlton and Perivale. The MPS other forensic and mechanical examination requirements more than justify that need, but reduces the argument to expand to the four in-house forensic suites as outlined in the 2002 report to the MPA. Site capacity has also been considered, particularly in relation to the constantly changing demand profiles emanating from additional police powers to seize uninsured and asset confiscation vehicles. There is clear evidence now that the workload arising from the seizure of uninsured vehicles will exceed the spare pound capacity resulting from the cessation of Operation Recover. Best value will therefore be maintained.

Abbreviations

ACPO

Association of Chief Police Officers

MPS

Metropolitan Police Service

SCD

Serious Crime Directorate

TP

Territorial Policing

VRES

Vehicle Recovery and Examination Service

C. Race and equality impact

It is recognised that operating the scheme in just five boroughs results in an unequal policy. For example, a person who has their car stolen in Croydon, and recovered in Ealing would not be charged, whilst they would be charged in the reverse situation. This charging practice has led to members of the public to question fairness, whilst some members of the MPA have shown increasing concern over the fee being levied against the victims of crime.

D. Financial implications

1. The supporting charging policy required the owner/owner’s agent to pay the statutory rates of £105 recovery and £12 per day storage commencing 48 hours from the time the owner is informed to collect the vehicle.

2. The total income of £339k from Operation Recover (October 2005 to December 2007) has contributed to a reduction in the VRES annual revenue operating costs. It should be noted that the fees were received in the majority from insurance companies, agents thereof, recovery operators and owners of the vehicles. Whilst the owner may have paid the recovery fees at the time the vehicle was collected, there is no way of knowing whether they were subsequently reimbursed through their insurance company. It would therefore be impractical to guarantee refunding the money to the person/organisation who subsequently met the cost of the charges.

3. In future years the suspension of the charging policy will mean a forecasted gross loss of income of £174k per annum. This is equal to 6.1% when compared to the total VRES forecasted income of £2.846m for 2007/8.

4. The loss of income from Operation Recover can, however be offset by the growth in income (forecasted surplus of £3.9m in 2008/9) from Operation Reclaim (seizure of uninsured vehicles) which will be subject to a further report to the Committee. In addition to the forecasted savings from the new recovery and storage contracts (£300k forecast annual saving) due to commence on 1 April 2008.

5. Capital and revenue outlay of the two MPS pounds to-date also continues to be economic by the other uses of sites outlined.

Conclusion

6. If the MPS continues with Operation Recover, and charging for the service, a down turn in police/public relations may result. However, it is extremely difficult to prove best value for the MPS whilst improved performance cannot be guaranteed. It is therefore recommended that the MPA endorse the decision that the MPS should not charge the owner/owner’s agent for the service and that the MPS should revert to its previous stolen vehicle policies outlined in paragraph 2. In summary:

• Operation Recover represents 3% of the total number of vehicles removed from the streets of London
• The potential for adverse public relations on this initiative is high
• The income generated is relatively low
• The expected increase in sanction detection rates has not materialised.

E. Background papers

None

F. Contact details

Report author: Stephen Ditchburn, Head of Vehicle Recovery and Examination Service, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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